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Building Consents Issued: June 2011
Embargoed until 10:45am  –  29 July 2011
Commentary

Building consent values include goods and services tax (GST), which increased from 12.5 percent to 15 percent from 1 October 2010. It is not possible to separate the impact of this change on building consent statistics.

Figures given are unadjusted unless otherwise stated.

Residential buildings

June 2011 month

In June 2011, compared with June 2010, consents were issued for:

  • 995 new dwelling units, including apartments, down 28 percent
  • 935 new dwellings, excluding apartments, down 29 percent
  • 60 new apartment units, up 5.3 percent.

The seasonally adjusted number of new dwellings authorised, excluding apartments, fell 4.5 percent in June 2011, following a rise in each of the previous three months. The trend shows a small increase recently, following a year of decline. Although it has flattened and appears to have reached a turning point, trend series are subject to revision each month and at least one more month of positive movement is necessary before an increase can be confirmed. 

The number of new dwellings authorised, including apartments, shows a flattened trend, but this change cannot be confirmed either. The flattened trend follows falls for 13 months, which brought this series to its lowest level (in May 2011) since it began in 1982. The seasonally adjusted number for June 2011 shows a small fall of 1.4 percent.

 Graph, New dwellings authorised, including apartment units, monthly.

Compared with June 2010, the value of residential building consents in June 2011 fell $149 million (29 percent), to $360 million. The value trend has fallen 24 percent since April 2010, although the rate of decline has been easing over recent months.

June 2011 quarter

While the monthly numbers of new dwellings authorised show trends that have flattened rather than decreased, the quarterly data shows trends that continue to fall. Quarterly figures are more stable than monthly ones, but a change in the trend is slower to emerge. The quarterly trend for the number of new dwellings authorised, including apartments, has fallen 30 percent since March 2010, while the excluding apartments trend has fallen 29 percent since March 2010.

Regional residential results

June 2011 month

In June 2011, compared with June 2010, the number of new dwelling units authorised in the North Island fell 249 units (26 percent), while the number in the South Island fell 129 units (31 percent). Of New Zealand's 16 regions, only two regions (both in the South Island) had more new dwellings authorised than the same month of the previous year: Southland rose 16 units to 36, and the West Coast rose 3 units to 18. The regions showing the largest decreases were:

  • Canterbury, down 99 units to 133
  • Wellington, down 96 units to 65
  • Auckland, down 53 units to 269.

 Graph, New dwellings authorised, by region, monthly.

Year ended June 2011

In the year ended June 2011, compared with the previous June year, 9,245 new dwelling units were authorised in the North Island, down 15 percent, and 4,293 new dwellings were authorised in the South Island, down 18 percent. Of New Zealand's 16 regions, 13 had fewer new dwellings authorised than in the previous year. The largest decreases were:

  • Canterbury, down 598 units to 2,373
  • Waikato, down 433 units to 1,650
  • Auckland, down 262 units to 3,394.

The three regions with more new dwellings authorised than in the previous year were topped by Tasman, up 22 units to 268, followed by Gisborne and the West Coast.

 Graph, New dwellings authorised, by region, year ended June.

Non-residential buildings

June 2011 month

The value of non-residential building consents was $237 million in June 2011, up 4.3 percent compared with June 2010. Of the 11 building types, seven recorded increases in value. Most changes were comparatively small. The two building types with the largest changes from June 2010 were:

  • hospitals and nursing homes, down $13 million
  • offices and administration buildings, up $11 million.

The largest contributors to the value of non-residential building consents authorised for June 2011 were:

  • offices and administration buildings, at 19 percent
  • shops, restaurants, and taverns, at 18 percent.

 Graph, Value of non-residential buildings authorised, by building type, including alterations and additions, monthly.

June 2011 quarter

The quarterly trend for the value of non-residential buildings authorised has fallen for the latest two quarters, following two increases. While quarterly figures are more stable than monthly ones, non-residential building consents are volatile, with no stable seasonal pattern, and therefore a stable trend is slow to emerge. See table 5 footnotes for more information (printed with this release, or available from the 'Downloads' box online).

 Graph, Value of non-residential buildings authorised, including alterations and additions, quarterly.

Year ended June 2011

For the year ended June 2011, compared with the previous June year, the value of non-residential building consents was $3,704 million, down 4.3 percent. Of the 11 building types, four recorded decreases in value.

The four building types with the largest changes from the previous June year were:

  • social, cultural, and religious buildings, down $229 million
  • offices and administration buildings, down $204 million
  • shops, restaurants, and taverns, up $135 million
  • factories and industrial buildings, up $129 million.

 Graph, Value of non-residential buildings authorised, by building type, including alterations and additions, year ended June.

As shown by the dark bars in the graph above, the largest contributors to the value of non-residential building consents authorised for the year ended June 2011 were:

  • education buildings, at 19 percent
  • shops, restaurants, and taverns, at 16 percent.

Canterbury earthquake consents

In Canterbury, earthquake-related consents totalling $14 million were identified in June 2011, including $8 million of non-residential consents and $6 million of residential consents. This total includes eight new dwellings, none of which were relocatable units.

From September 2010, about 300 earthquake-related consents have been identified, totalling $76 million. This includes 97 new earthquake-related dwellings (of which 67 were relocatable units intended to house displaced residents).

Earthquake-related consents cover residential, non-residential, and non-building construction. Non-building construction includes things like retaining walls and swimming pools. Consents for demolitions, where issued, are excluded.

Building consents are often used as an early indicator of building activity. The extent of the damage to Christchurch and surrounding areas, particularly following the earthquake on 22 February 2011, means the relationship between consents and activity (for example, as measured by Statistics NZ's quarterly estimated Value of Building Work Put in Place) may change, even at the national level. The next Value of Building Work Put in Place information release will be published on 8 September 2011.

All buildings

June 2011 month

In the June 2011 month, the value of consents issued for all buildings was $597 million, down 19 percent compared with June 2010.

Graph, Value of building consente authorised, including alterations and additions, monthly. Graph, Value of building consents authorised, including alterations and additions, year ended June.

Year ended June 2011

For the year ended June 2011, compared with the year ended June 2010, the total value of consents issued for:

  • all buildings was $8,637 million, down $971 million (10 percent)
  • residential buildings was $4,932 million, down $805 million (14 percent)
  • non-residential buildings was $3,704 million, down $166 million (4.3 percent).

For technical information contact:
Tina Waterhouse or Karen MacKenzie
Christchurch 03 964 8700
Email: info@stats.govt.nz

Next release ...

Building Consents Issued: July 2011 will be released on 30 August 2011.

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