{"id":505559,"date":"2026-07-02T03:51:08","date_gmt":"2026-07-02T03:51:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/505559\/"},"modified":"2026-07-02T03:51:08","modified_gmt":"2026-07-02T03:51:08","slug":"building-consents-jump-19-as-housing-pipeline-strengthens","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/505559\/","title":{"rendered":"Building consents jump 19% as housing pipeline strengthens"},"content":{"rendered":"
\u201cOver the past 12 months nearly 40,000 new dwellings were consented. That\u2019s the highest level since 2023.\u201d<\/p>\n
The lift in planned building work remained heavily centred on Auckland (where consent numbers are up 22% over the past year) and Canterbury (+30%).<\/p>\n
However, there had also been firmness in Southland, Otago, Wellington and Waikato. <\/p>\n
The rise in planned work had been split across both standalone dwellings and medium-density developments.<\/p>\n
Westpac senior economist Satish Ranchhod.<\/p>\n
On a per capita basis, Canterbury and Otago continued to record the highest number of new homes consented.<\/p>\n
In the year ended May 2026, Canterbury recorded 12.1 new homes consented per 1000 residents, followed by Otago (11.1) and Auckland (9.3), compared with 7.4 nationally.<\/p>\n
\u201cThere have been questions about how sustained the lift in building activity will be,\u201d Ranchhod said. <\/p>\n
\u201cMany of the projects consented will have been in the planning phase for some time. However, increases in building and financing costs after the Middle East war have been casting a long shadow across the building sector.\u201d<\/p>\n
Westpac economists had heard anecdotal evidence of some builders experiencing tough trading conditions, he said.<\/p>\n
\u201cSome of those pressures are now easing. Most notably, oil and diesel costs have fallen a long way. However, other build costs are continuing to rise, and momentum in the housing market remains weak.\u201d<\/p>\n
Westpac would be watching to see if the development pipeline remains strong over the next few months, he said<\/p>\n
\u201cIf tensions in the Middle East remain contained, we\u2019ll hopefully see confidence in the economy lifting and cost pressures moderating.<\/p>\n
\u201cFor now, we expect a moderate lift in home building activity over the coming months.\u201d<\/p>\n
Meanwhile, non-residential (commercial) consents totalled $8.7 billion, down 4% from the year ended May 2025.<\/p>\n
The non-residential building types with the highest values were:<\/p>\n
offices, administration and public transport buildings at $1.7b (down 5%)education buildings at $1.3b (up 6.4%)storage buildings at $1.2b (down 5.2%).<\/p>\n
The value of commercial building work being consented had continued to track sideways, Ranchhod said.<\/p>\n
\u201cUnder the surface, the value of planned office and industrial projects remains elevated, while retail developments are more limited.<\/p>\n
\u201cEven with easing geopolitical tension, we expect developers and occupiers will be cautious about spending on new space until it\u2019s clear that the economy is back on a firmer footing.\u201d<\/p>\n
Liam Dann is business editor-at-large for The New Zealand Herald. He is a senior writer and columnist, and also presents and produces videos and podcasts. He joined the Herald in 2003.<\/p>\n