Construction investment at record high

For the first time in 12 years, the number of new homes consented to in Auckland exceeded 10,000 (as at November 2016). Over 1156 consents were issued in November alone, making it the strongest month for consents in more than 10 years. The Minister for Building and Construction, Hon Dr Nick Smith, highlighted the importance of more than 1000 consents being issued per month in Auckland to meet population growth.

The consent boom is not limited to the Auckland market. Nationally over 30,000 consents were issued as at November 2016, the second consecutive month 30,000 issued consents has been surpassed. The rate of 30,000 homes built each year is the fastest rate ever (exceptions being 2004 and the mid-1970’s). National residential construction value has increased 23% to $12.45 billion in 2016. All national construction increased in value 15% and is now worth a total of $19 billion.croppedimage449249-building-consent

The Construction Minister highlights the practical reality that the current growth rate in the construction industry is as fast as the sector can be grown without compromising on build quality. The Minister hinted at further legal reform aimed at growing the housing supply. This comes on top of the development of Special Housing Areas in the short term, and the National Policy Statement on Urban Development and Resource Management Act reforms in the long term.  

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