Number of dwellings consented drops by almost 30% in last 12 months.
Mike Blackburn
Author of the New Zealand Construction Report and Co-Founder of CBS Cooperative
Unsurprisingly, the number of dwellings consented continues to fall across the city.
In July 2016 there were 226 residential dwellings consented by the Christchurch City Council. In June 2017 there were just 160. This is a 30% decline over the past 12 months.
March and May 2017 saw a number of large multi-dwelling apartment complexes consented, however these are generally against the current trend. The word on the street is that some of these developments are facing issues and it may be some time before building work commences.
Although the overall number of building consents issued is falling by a slower rate of 15% (127 in July 2016 to 109 in June 2017), it is clear that that the decline is set to continue for some time yet.
Earthquake related building consents hit an all-time low of just 9 in June 2017.
The June 2017 Quotable Value report on Property Values showed that year on year Canterbury values had increased by only 1.1% in comparison to the rest of the country at 8.1%.
This is a simple case of supply and demand economics in action. The earthquake building boom has seen significantly more houses built than were lost and we are now seeing many new houses (house and land packages) sitting empty.
Having said this, approximately 25% of all Business as Usual consents were issued to development companies. There seems to be only a small slow down in this section of the market.
This of course does nothing for the residential building sector in the city with many builders and sub-trades now struggling to find work.
Buckle up…this trend could continue for the next 12 months.
About Mike Blackburn
Mike is a Management Consultant and Business Mentor working with building companies and various trades across the construction sector.
He has an MBA degree and more than 20 years’ experience in business and senior management.
Mike specialises in Management Systems and Administration, Business Development, Sales and Marketing.
If you would like to talk to Mike about improving your business:
021 370 018
www.blackburnmanagement.co.nz
P3 Consultant, Member Board of Directors, award winning project management professional, 4 x Ironman, leading strategic programme initiatives, 15 years of international speaking, home builder, dad
7 年Great work Mike I know acquiring and crunching this data takes time, thanks for sharing
Business Broker at Bayleys Canterbury
7 年Excellent information