28 Jun 2013

Auckland, Christchurch lead new housing consents

7:59 pm on 28 June 2013

Housing consent figures for May show more than half were for homes in Auckland and Christchurch.

The latest figures from Statistics New Zealand show that 1971 housing consents, including apartments, were issued with consents for Auckland and Christchurch comprising 57% of the national total.

The new figures show housing consents rose 1.3% in May, following a 21% increase in April. The value of the consents reached almost $1.2 billion, the highest monthly value since August 2007.

Statistics New Zealand said earthquake-related building consents in Canterbury reached a milestone in May, with the value over the 33 months from September 2010 topping $1 billion. That includes more than $400 million for residential work, including 885 new houses.

Canterbury quake-related building consents for May were valued at $56 million, including 64 new homes.

The Government Statistician said the trend is now 73% higher than March 2011. The 1971 consents issued in May were 43.6% higher than in May 2012, while the 18,521 consents issued in the year ended May was the highest annual total since the year ended May 2008.

Economists say the new figures are surprisingly good, as the big increase in April should have left little room for more growth.

But economist Christina Leung warns that rising building activity will do little to ease Auckland's critical housing shortage. She said the Reserve Bank estimates that Auckland is 20,000 to 30,000 homes short and the problem is likely to remain acute for some time.