Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

Strong population growth fuels building boom


24 May 2018

The latest Auckland Economic Quarterly from the council’s Chief Economist Unit shows that net long-term migration into Auckland was 34,450 for the year ended March 2018. This capped another 12 months of strong population growth, despite an expectation for the trend to decline slightly for the rest of the year.

Senior Economist Harshal Chitale says this growth has fuelled demand for goods and services, including housing and infrastructure. It has also contributed to strong growth in building activity, as evidenced by the increases in non-residential and residential consents.

“The non-residential consented floor area was up 24 per cent for the year ended March 2018 while annual residential building consents have continued their upward trajectory to be at nearly 11,200 consents, which is the highest number since January 2005”, he says. “Attached dwellings made up more than 50 per cent of this number.”

“The building sector is reporting a solid pipeline of construction work and hiring has been buoyant over the quarter despite continued shortages of both skilled and unskilled labour.

“The $28 billion of local and central government investment in transport over the next 10 years, recently outlined in the Auckland Transport Alignment Project, should provide longer-term confidence in the infrastructure construction pipeline,” says Mr Chitale.

However, the growth in consents was still not enough to keep up with the increase in the demand for housing.

Due to population growth over the last 12 months, the housing supply shortfall that already exists, and the slowdown in the number of new house listings, it is not expected that house prices will fall substantially.

According to recent figures from Real Estate Institute of New Zealand, Auckland’s median house price in April 2018 was $850,000 which is almost unchanged since a year ago.
Along with rising household incomes and flat to falling retail interest rates, houses are the most affordable they have been since September 2014

Employment and wages
Auckland’s unemployment rate increased to 4.5% for the March quarter which, although higher than the previous quarter, is still low in a historical context.

Nominal wages in Auckland increased about 4% for the year to March, which translated to a real wage increase of about 3%. The Labour Cost Index, which corrects wage and salary increases for productivity gains and for the changing industrial composition of the economy, was up 1.8% for the same period.

Businesses, particularly in the building sector, are facing difficulties finding both skilled and unskilled labour, according to the NZIER’s QSBO. If and when net migration does start to fall significantly, these shortages could intensify.

Underemployment – defined as those with the desire to work more hours but unable to find those hours – reduced this quarter, which means that spare capacity is being better utilised.

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Crowdsale And Crowdfunding Campaign: Help Create The Future Of Independent News

Two weeks to go! The Scoop 3.0 plan aims to create NZ’s first community-owned, distributed news and media intelligence ecosystem in 2019. We believe this ScoopPro media monetisation approach can be scaled and spread globally to support local and independent news efforts in regional New Zealand and around the world.

Scoop is an ecosystem, it would not exist without those who contribute to it, read it and rely on it for professional media purposes. Generous past support from this ecosystem has enabled us to come this far in developing our business model. Support our PledgeMe Campaign>>

 

14/11: Two Years’ Progress Since The Kaikoura Earthquake

Mayor John Leggett said it was a day for reflection, but also a time to recognise the work by many people to support progress towards recovery made across Marlborough since November 2016. More>>

ALSO:

Pike River: Mine Drift Re-Entry Plan To Proceed

“I’ve decided the Te Kāhui Whakamana Rua Tekau Mā Iwa - Pike River Recovery Agency, recommended course of action to enter the drift, using the existing access tunnel, is by far the safest option,” said Andrew Little. More>>

ALSO:

Appointments: New High Commissioner To Australia Announced

“Dame Annette King needs no introduction given her long running career as a parliamentarian where she has previously held a number senior Cabinet portfolios, including Justice, Police and Health. She also was Parliament’s longest serving female MP with 30 years’ service,” said Mr Peters. More>>

ALSO:

Two Years Since Kaikoura: Silvia Cartwright To Lead Inquiry Into EQC

“The inquiry will be the first of its kind under the Public Inquiries Act 2013 and will have all the powers of a Royal Commission, be independent of Government and make its report directly to the Governor-General. More>>

ALSO:

Gordon Campbell: On The Royal Commission Into Child Abuse

Obviously, it is good news that the coalition government has broadened the scope of its Royal Commission into the abuse of children, beyond its previous focus on children in state care. More>>

ALSO:

Cases Delayed: Court Staff Refuse To Handle Sentencing Papers

Dozens of court cases have reportedly been delayed, as court staff escalate industrial action at two Auckland courts by enforcing a ban on handling sentencing papers. More>>

ALSO:

Education: Primary Teachers Rolling Strikes

RNZ Report: More than 100,000 primary school students in Auckland will be home from school today as teachers and principals walk off the job for the second time this year. It's the start of a week of rolling one-day strikes around the country, after the collapse of contract negotiations last Thursday. More>>

ALSO:

"Process Was Sound": Inquiry Into Haumaha Appointment Released

The Inquiry’s purpose was to examine, identify, and report on the adequacy of the process that led to the appointment. It found the process was sound and no available relevant information was omitted. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels