Regions see value, number of building consents fall

Sarah and Ross, the father and daughter team from Ross Andrew Builders, look over plans on one of...
Sarah and Ross, the father and daughter team from Ross Andrew Builders, look over plans on one of their Balclutha building sites. Photo by Rachel Taylor.
The value of building consents in the Queenstown Lakes district fell 10% in the year to the end of April, compared with the previous corresponding period, Lakes Environmental building control supervisor Murray Kennedy says.

Income from consents fell to $247 million in the period, from $274 million in the previous 12 months.

The number of building consents issued also fell, from 1340 to 1197. Mr Kennedy said although the numbers were down, April's figures were "significantly ahead" of the previous April, with 127 consents issued, valued at $23.8 million.

Each consent application took an average of eight working days to grant, he said.

In April 2009, 105 consents were issued, valued at $21.2 million, and each completed in an average of 12 working days.

"It indicates quite a drop in the early part of the last year, but also it shows things are picking up," he said.

Lakes Environmental had also "significantly" improved its processing times, he said.

Queenstown builder Andrew Campbell said he was lucky to land a big job two years ago which carried him through the slowdown.

"We secured work when most were slowing down.

The job took us a year and during that time the phone certainly wasn't ringing hot.

It has been quite quiet in the past 12 months, but I think things are starting to pick up.

Hopefully, things are on the way back up," he said.

"Compared to a year ago there are more clients looking for prices and plans being passed around now, so it's looking good," he said.

Building consents issued by the Waitaki District fell in both number and value.

In the 12 months to the end of March this year, the council issued 699 consents worth $41.2 million, compared with 786 worth $47.5 million in previous corresponding period.

However, some North Otago builders believed the downturn in North Otago had not been as severe as in other areas.

Builder Roger Skene said things had quietened down in North Otago after Christmas, but recently appeared to be picking up again.

The focus was more on renovations rather than building new homes, although that was usually the case during winter, when people did not want houses open during the cold weather.

"We are lucky.

We probably missed the worst of the downturn," he said.

Murray Hayes said his business had picked up, but it was patchy for others.

Although the number of permits issued in Central Otago in the past year has declined only 7%, the value of the permits has dropped 24%.

Central Otago District Council building control team leader Stewart Geddes said permits for property worth $67,114,305 were issued during the 12 months until the end of April, while the figure for the corresponding period in 2007-08 was $88,022,345.

The number of permits issued for the year ending April 2010 was 817, compared with 879 for the previous corresponding period.

Mr Geddes said that permits for larger commercial properties were a feature of the 2007-08 year, which had "pushed up" the figures. January 2008 recorded the highest value for permits in any month during the past three years, with permits issued for property worth more than $13 million.

"In Cromwell last month, there were only four permits issued for new homes and that shows how things have slowed.

"There's a fair bit of belt-tightening at the moment and a definite downward trend to residential building."

Managing director of The Breen Construction Company, Lindsay Breen, said building activity in Central Otago was quiet.

The company employed 95 people, 60 of them based in Central Otago.

Last winter, it had been a struggle to find enough work to keep all staff employed.

It was quiet on the commercial building front in Alexandra, but work for the Ministry of Education, upgrades and maintenance of school buildings had helped keep the firm busy, he said.

There was more residential building activity in Cromwell than in Alexandra, but farm-based construction throughout the district had declined.

The Clutha District Council issued 522 building consents, worth $36.4 million, in the 10 months from July 2009 to April 2010, compared with 687 building consents, worth $44.1 million from July 2008 to June 2009.

Consents granted for additions and alterations during the July 2008 to June 2009 period numbered 116 and were worth $3,628,000.

This fell to 90 consents during the period from July 2009 to April 2010, worth $2,240,000.

Commercial-industrial building consents issued from July 2009 to April 2010 also fell, with 59 consents issued, but their value of $15,006,000 was more than the $8,912,000 generated by the 68 consents issued between July 2008 and June 2009.

There was also a decline in the number of farm building consents issued between July 2009 and April 2010, with 73 consents, worth $3,783,000.

This was a dramatic fall from the period from July 2008 to June 2009, when revenue of $11,993,000 was collected from 118 consents.

Demand for new dwellings rose in the period from July 2009 to April 2010, with 43 new dwelling consents issued, worth $11,247,000, compared with 39 consents issued between July 2008 and June 2009, worth $11,890,000.

Ross Andrew Builders owner Ross Andrew, of Balclutha, said inquiries regarding new homes had eased since last year, while those about extensions and home alterations had increased.

Mr Andrew estimated 80% of the work his company was doing was tendered.

"Most people want a price before the work starts," he said.

 

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