News released yesterday via the NZ Herald showed that the number of building consents issued in December was….wait for it….the LOWEST since records started being kept in 1965.
We have never had such a small amount of residential construction…at least, if you extrapolate December as if other months will be similar. We await January and Feb’s figures with bated breath. One would have thought that Christchurch would be padding the figures as homes are demolished and new ones built, but perhaps it is a bit early for that.
ANZ economist Koon Ghan described the building consent situation as “depressing. It probably cannot get any worse”.
Well yes, it IS depressing. Unless you are a property investor. Lack of capacity means value rises…..eventually, anyway.
Already, there are anecdotal accounts of rent rises (and the government’s decision to abolish depreciation on residential homes has something to do with that as well). If building construction doesn’t pick up, we should see further rental growth and housing shortages. That’s if the tenants don’t just throw their hands up and shift to Australia first, an option often on the cards and the subject of an EXPO at the Auckland Showgrounds this week….