If you wander around Auckland (especially the city centre), you’ll notice that there’s a lot of construction going on, and a lot of people hard at work on those sites. 2017 was a big year for building and development. 2018 will probably be even bigger, but let’s recap 2017 for now. Here’s what we know.
In 2017, it was “all hands on deck” for builders and a lot of other professions that are tied to the construction industry – architects, plumbers, engineers etc. The “volume” of construction work undertaken, or the amount of stuff actually built, was probably the largest it has ever been. I’ll update an older post when the 2017 construction data is released.
All the signs point to even more construction in 2018, assuming the industry can handle more growth.
We get a really good picture of how much construction is coming up through Stats NZ’s building consent data. The graph shows how many homes have been consented in Auckland, for each year from 1991 through to 2017:
2017 was significant for a few reasons:
- Auckland Council consented 10,867 homes, the highest since 2004.
- Under the Auckland Plan, the region is supposed to build 100,000 homes in the 2012-2021 decade, or 10,000 homes per year. 2017 was the second year to push above that 10,000, but further growth will be needed to meet the 100,000 target. Consents were well below 10,000 in 2012-2014, so there’s some catching up to do.
- For the first time ever, standalone houses made up less than 50% of the homes consented. Apartments, terraces and retirement villages made up the majority of new homes. I predicted this back in early 2016.
- On the other hand, I was only half right calling 2017 the Year of the Terrace! Terrace consents did actually reach record levels in 2017, but the growth from 2016 wasn’t huge (2,239 homes vs 2,104).
- Retirement villages also hit record levels: 868 units. That’s equivalent to about three new retirement villages for the year.
- The fastest growing consent type was apartments. The 2,442 homes consented were the highest since 2004, and well up on the 1,746 for 2016.
As I’ve written before, there’s a time lag from when homes are consented to when they’re actually built and ready to live in. 2018 will be the first year in a long time that 10,000 homes are actually completed. This figure will be helped along by a lot of apartment buildings which might have started in 2015-2016, but are due for completion this year.
Across Auckland (and a lot of other NZ cities), there are buildings being started, finished or converted. Here’s a recent conversion of some old flats just past Newmarket. The Haka Hotel, as it’s now known was finished just before Christmas, and is a big improvement on what the building looked like before:
You can check out these projects and hundreds more on the RCG Development Tracker page.