The number of building consent applications in Tasman has dropped by nearly a third for the past quarter, compared to the same time last year.
In the Tasman District Council’s Building Assurance Update for October, it noted a substantial decrease in building consent applications being submitted, with just 293 applications received in the previous three months. It represents a 32 per cent decrease from the previous year for the same period which was 434 applications, while the same period in 2021 registered 366 applications.
TDC team leader building support Courtenay Lynn says, building consents have been declining for the past six months due to economic pressures including rising building and material costs, high interest rates and lending restrictions. The drop in consents specifically relates to new homes and she says the industry has moved from a significant growth period where subdivisions were pre-sold months in advance, to subdivisions being released with sections still to be sold.
“It isn’t all negative and other building consent work such as commercial and alterations applications continue to be submitted near expected levels. We do expect more certainty as we move into the new year and new dwelling applications to increase from 2024. A benefit of this is there are sections available now to meet demand when it increases.”
Nelson Tasman Master Builders Association president Ruben Fry says the building industry is returning to “normal” after a building boom period and expects there will be less pressure on tradies rather than numerous job losses.
“Our tradies can work a 40-hour week again rather than all the overtime. When the hammer is down, the hammer is down, and now it’s just coming back to normal. We will lose some tradies because it was unsustainable.”
He says the region’s appeal, especially to retirees with a bit more money to spend, means a reasonable level of building will continue. When it comes to actual new homes consented, Tasman is one of the highest-ranked region.
Figures from Stats NZ show that for the year ended July 2023, Tasman ranked third in the country for the number of dwelling consents per 1,000 residents, behind Canterbury and then Auckland. In Tasman, 10.1 new dwellings were consented per 1,000 residents, compared with 9.6 last year and 10.1 in 2021.
In terms of houses being built, Tasman had 547 dwelling consents for the year ended July 2023, compared with 566 the previous year and 588 in 2021. Nationally, the number of new dwellings consented was down 43,487 or 14 per cent, for the year ended July 2023.
Nationally, the number of new dwellings consented was down 43,487 or 14 percent for the year ended July 2023 from the previous year.
