Home Building Consents down in Invercargill
November 28, 2023 at 12:06 PM
As reported in Stuff, home building consents are down in Southland and Invercargill.
We are not alone, consents for new homes throughout New Zealand have flattened off in the 12months ended in August according to Stats NZ data.
A few factors could have contributed to this as per this article, election year and insufficient resources across the construction industry.
I believe the banks and lending institutions have contributed to the decline in building consents. Home lending criteria to build had become tougher through the uncertainty with cost over runs or being able to rely on fixed priced contracts. Add in increasing interest rates and the continued increases in the bank testing rate for affordability.
Interesting to read in this article, Southland District Council's building solutions manager said “This means the council is seeing owners focus more on renovations for existing dwellings and building sleepouts under the schedule 1 exemption.”
Where I see challenges, I also see opportunities! With the building industry slowing based off these numbers, you may be able to find builders more readily available and possibly more competition to compete for your build!
The best place to start when planning your dream home is to talk to us! We will navigate around the various banks and find the best option for your construction home loan. Get your build pre-approved with us, where we will be with you from beginning to end!