Tag Archives: crisis
More home being built in New Zealand, mostly apartments
The number of new home consents in New Zealand was 3.6% higher in January 2015 compared with the same month the year before, new data shows. The trend for new dwellings is rising and is at its highest level since July 2007. However, excluding apartments, it was 6.8% lower, the figures from Statistics New Zealand also show. Also, the seasonally adjusted number of new home consents decreased 3.8% in January 2015 and excluding apartments, this number fell 7.5%. Business indicators manager Neil Kelly pointed out that in unadjusted terms, nearly $1 billion of building work was consented in January, some $645 million of residential work and $351 million of non-residential work. More than $15 billion worth of building work was carried out in 2014, some $2.8 billion higher than in 2013, a 23% increase. Together, Auckland and Canterbury accounted for $9.7 billion worth of the building work in 2014, nearly two thirds of the national total. After removing price changes and seasonal variations, overall building activity volume edged up 0.3% in the final quarter of 2014. Residential building activity led with 4.3% growth, while non-residential building activity fell by 5%. ‘The trend for residential building activity has grown by two thirds since the September 2011 quarter. However the current level is 7% lower than the series peak more than 10 years ago in the June 2004 quarter,’ added Kelly. Continue reading
Home building in Australia reaches new record high
Home building approvals in Australia soared to a new record high in January 2015, up 5% on the previous monthly record of November 2014, the latest data shows. The figures from the Australian Bureau of Statistics also shows that the total number of new homes approved in January 2015 was 7.9% higher than in December 2014. Detached house approvals held steady in the month, down a marginal 0.4% and remain at similar levels compared with a year ago. In contrast, multi-unit approvals jumped by 17.5% in January 2015 to a level 24.3% higher than a year earlier. ‘Once again, the multi-unit sector continues to be the key driver of building approval results,’ said Housing Industry Association economist, Geordan Murray. He pointed out that a sharp spike in multi-unit approvals in Queensland in January has combined with solid levels of multiunit approvals in New South Wales and Victoria to lift the national total. ‘These three states typically account for around 80% of all multi-unit residential building and when you have all three performing strongly, it’s a recipe for a strong national result in this segment of the market,’ he explained. He also pointed out that January 2015 was only the second month on record when the total number of multi-unit dwellings approved eclipsed the number of detached houses approved. ‘But this is certainly no indictment on the performance of the detached house market which continues to maintain healthy approval numbers. Changing consumer preferences, demography, affordability challenges and aspects of the policy environment are all contributing to the current situation where a larger share of new homes are in the form of attached dwellings,’ he added. During January seasonally adjusted new dwelling approvals increased most strongly in Queensland with growth of 47.8% followed by South Australia at 22.3% and Victoria at 3%. Declines in new home approvals were recorded in New South Wales with a fall of 4.2%, Western Australia down 11.6% and Tasmania down 9.3%. In trend terms, new dwelling approvals fell in the Northern Territory by 10% and the Australian Capital Territory saw a decline of 5.7%. The HIA’s most recent national outlook report identifies 2014/2015 as the year when a record number of new homes will be built although it says that wide geographical divergences are still evident, trading conditions are more competitive than ever, and the renovations part of the market is still soft. ‘National new home building activity is the star of the housing show with a record level of 195,936 new dwelling commencements forecast for 2014/2015. That result would represent growth of 7.7% and cap a third year in a row where new home construction has headed higher,’ said HIA chief economist, Harley Dale. He pointed out that record building needs to continue to ensure that supply in coming years meets the requirements of a growing and ageing population. Continue reading
House prices in UK down 0.3% in February
UK house prices fell by 0.3% in February, taking the average price of a home to £192,372, according to the latest index from the Halifax. It means that annual prices growth is now 8.3% and on a quarterly basis from December to February home prices have increased by 2.6% compared to the previous three month period. The quarterly rate of change increased for the second successive month but it remains below the rates recorded between July and September 2014. The three monthly rate increased despite a small monthly fall in February due to robust rises in both December and January. Prices in the three months to February were 8.3% higher than in the same three months a year earlier. This was a little lower than January’s annual increase of 8.5% and significantly below the peak of 10.2% in July 2014. The decline between January and February, partly offset January’s 1.9% rise. Martin Ellis, Halifax housing economist, pointed out that annual price growth eased from 8.5% in January to 8.3%, and is comfortably below last July’s peak of 10.2%. ‘The firming in price growth shown by the recent pick up in the three month on three month comparison and indications of a modest rise in activity are likely to be due to a boost to housing demand as a result of increases in real earnings and spending power, further recent falls in mortgage rates and stamp duty changes,’ he explained. ‘The supply of both new and second hand homes available for sale remains low, another factor that is likely to be supporting house prices. Supply remains tight despite house building in England increasing for the second consecutive year in 2014 and a recent rise in the number of properties coming on to the market,’ he added. Continue reading
