Otago’s dwelling consents rise largest

Queenstown’s growth last year underpinned the rise in Otago dwelling consent numbers. Photo: Getty Images

Otago has notched up the largest percentage gain for new dwelling consents issued during 2017, underpinned by more new houses, townhouses, and apartments built in Queenstown.

Across the country, the total number of new house consents issued in the year to December rose 3.4% to 31,087, compared with 2016, Statistics NZ data showed yesterday.

While New Zealand recorded an overall 1.6% decline for

December, in Australia December approvals plunged 20%.

SNZ construction statistics manager Melissa McKenzie said while there had been an overall fall in New Zealand stand-alone houses consented, that was more than offset by the large rise in apartment units consented during the year.

"There was strong growth in many regions, with more consents issued particularly in the Auckland, Otago, and Wellington regions last year; however, Canterbury continued to decline," Ms McKenzie said in a statement.

ASB senior economist Jane Turner said some of the volatility was due to "lumpy" apartment consents, but uncertainty around the effects of the Government’s KiwiBuild programme may also be temporarily weighing on housing-build demand.

"We expect that consents will recover in coming months once further policy details are revealed," Mrs Turner said.

She was upbeat about housing construction outlooks in Auckland and Wellington, with both regions at present experiencing a material under-supply of housing.

Westpac senior economist Satish Ranchhod said annual issuance in Auckland remained "firm".

"Over the past year, just under 10,900 homes were consented in our largest city," he said.

That included a growing number of medium to high-density houses.

"We expect building levels in Auckland will continue to rise gradually over the coming years," Mr Ranchhod said.

In New Zealand for the month of December, the total number of new homes consented was 2169, down 1.6% from the same month in 2016.

Ms McKenzie said that was driven by a fall in the number of new stand-alone houses consented.

In Australia during December, there was a sharp fall in home building approvals which provided further evidence of the slowdown in Australia’s housing market, AAP reported yesterday.

Approvals plunged 20% in December, due to a 39% fall in approvals for high-density apartments and townhouses, the latest Australian Bureau of Statistics figures show.

ABS director of construction statistics Daniel Rossi said approvals for private-sector houses remained stable, with just under 10,000 houses approved in December, AAP reported.

Economists attributed the size of the fall in December approvals to expected volatility in the apartment market — apartment approvals were up 30.6% in November — and said the data showed the housing market was cooling.

simon.hartley@odt.co.nz