Spring is usually a busy time in the residential property market. I’ve always thought that the best time to check out a house is winter, so you can get an idea of whether it stays warm or not, but what do I know?
This spring has also been a very busy time for launches of new residential projects – i.e. they’ve started going on sale, whether or not they’re actually being built yet. Since September, 13 apartment/ terrace projects have launched by my count, with 810 homes between them, and there’s still half of November to go.
Launched in spring 2015:
West Edge (stage 1)
The Maritime Apartments
Connect Anzac Apartments
Stonefields – Verto Apartments
Whitaker Park Central
Stonefields – Bellus Apartments
Merchant Quarter MQ2
It’s a pretty big ‘pipeline’ of potential new apartments, most of which will be completed in 2017, assuming they sell well. You can take a look at these, and another 500+ projects around the country, over on our RCG Development Tracker page. It’s quite amazing how much is going on around the CBD and the fringe suburbs like Ponsonby, Grey Lynn and Eden Terrace.
There’s not much to report this month in terms of building consents. Some news articles said that consents for Auckland had dropped, which they had relative to the previous month – but not the same month of the previous year. So, like the are-house-prices-going-up-or-down stories this month, it depends on how you want to look at the data.*
Building consents are a good ‘leading indicator’ of how many homes are going to get built in the next year, because when the consent has been approved, the builder is free to get on with building them, and the consent lapses if work isn’t started within a year.
The graph above looks at consents on a “moving annual” basis, so it’s showing how many homes are consented in each 12-month period – in this case, the latest data is for October 2014 to September 2015. There’s only been a small rise vs last month, driven by detached homes (4,966 consented in the last year). However, I think we’ll see apartment consents heading upwards in the next few months.
* Similar issue there – REINZ were looking at Oct 2015 vs Sep 2015, QV were looking at Oct 2015 vs Oct 2014