Low interest home loans help boost new building consents
Low interest home loans help boost new building consents in Taranaki
Low interest rates are spurring first-time home buyers to jump into the housing market in Taranaki, with new dwelling consents up 20 per cent in 12 months, latest Statistics NZ data shows.
New dwelling consents issued in the region rose 20.6 per cent in the 12 months to November last year, the highest increase for the period in the past five years.
Overall, there were 550 new dwelling consents issued between November 2018 and November 2019, up from 456 in 2018, a 20.6 per cent increase.
New Plymouth had the highest number of consents granted in the region for the 12 month period with 462, up 22.5 per cent from 377 in 2018.
There were 27 consents approved Stratford in 2019, a drop of 6.9 per cent on 2018, when 29 were granted.
In South Taranaki there were 61 consents, up 19.6 per cent on 2018, when the figure stood at 51.
GJ Gardner Homes Taranaki franchise owner Rod Roebuck said the latest figures show cheap interest rates were helping first-time home buyers.
"There is a real mix of people building new homes but money is cheap to borrow at the moment."
First home buyers are using cheap loans and Kiwisaver as a stepping stone to get into the market, he said.
The average price offered by the company for a new home build was $550,000.
Roebuck said the figures also showed consistency in the domestic building market in the region.
"We've struggled with peaks and troughs in previous years but in the past eight to nine months there has been consistent work for our tradespeople."
The local company has 45 homes under construction, and normally had 60 new home consents filed at any one time.
Roebuck said the consistency of work had eliminated delays for owners being handed the keys for their new home.
The firm guaranteed a construction start date two weeks after consents were issued, and a completion date of around 120 days for a 230sqm home, he said.
In the past five months new houses have been completed two to three weeks ahead of schedule, he said.
The figures showed July as the biggest month for consents issued in Taranaki, with 58.
Master Builders Federation Taranaki president Campbell Mattson said the amount of consents issued at late 2019 would generate a solid work flow for tradespeople in 2020.
Nationally there were 37,010 consents for new homes in 2019, the highest since the mid 1970s when there was 37,919 new homes consented in 1974.
The number of new homes has been generally increasing since late 2011, after lows in 2009 and 2011 when there was fewer than 14,000 new homes consented, Statistics NZ said.
Overall there was 13 per cent more new homes were consented in 12 months to November 2019 compared the previous year.
Auckland topped the list with 14,866 new homes consents in the 12 month period followed by Waikato (4176), and Canterbury (5310).