Capacity constraints in building sector a drag on consents
AUCKLAND apartments carried the month for building consents around the country in March.
South Island and Otago numbers and values were well down on a year ago.
Economists have reiterated rising concerns the construction sector is unable to cope with housing demands.
Around the country, 2926 new homes were consented nationally in March, up more than 14%.
Of those, 1082 were in Auckland, comprising 492 standalone houses, 361 apartments, 221 townhouses, flats, and units and eight retirement village units.
Nationally, consent numbers rose from 2779 to 2926 and the value rose from $1.02 billion a year ago to $1.07 billion.
ASB senior economist Jane Turner said while the residential consent numbers had lifted strongly in March, led by apartments, the Auckland trend appeared to be flattening.
‘‘We believe New Zealand construction activity is close to a peak,’’ Mrs Turner said.
Auckland growth in consent issuance had slowed, probably reflecting capacity constraints in the construction sector.
While Wellington’s consent growth was strong, limited construction capacity might soon start to slow growth there, she said.
In the South Island, consent numbers fell 15% from 819 to 695 a year ago, the value declining 17% to $265 million.
In Otago, consent numbers fell almost 42% from 210 to 124 a year ago, the value declining almost 70% from $192 million to $58 million.
Stats NZ construction statistics manager Melissa McKenzie said about threequarters of the new apartments consented in March were in Auckland.
‘‘National newhome numbers continue to fluctuate month to month due to apartments and other large projects,’’ she said.
Westpac senior economist Satish Ranchhod said standalone home numbers were essentially flat.
‘‘Looking at the longerterm trend in dwelling consent issuance, home building numbers are rising at a very gradual pace, particularly in Auckland.’’
He expected overall national building levels would increase only gradually, due to shortages of skilled labour, rising costs and difficulties getting finance.
‘‘The slowdown in the housing market will also be a drag.’’