Selling

Property Market Report

Auckland Council fees and charges continue to rise unchecked and is a major contributor to a continued fall in building consent numbers across greater Auckland.

Fewer new homes are being built and the cost of building them keeps rising.

The number of new homes being consented has nose-dived by more than 30% over the last two years, and the cost of building them is still increasing, according to interest.co.nz’s latest analysis of Statistics NZ’s residential building consents data.

This shows 7717 new dwellings were consented throughout the country in the first quarter (Q1) this year, down from 9720 (-20.6%) in Q1 last year, and down from 12,333 (-37.4%) in Q1 2022.

At the same time the average estimated cost of building those homes has continued to rise.

The average estimated build cost (excluding land) of new dwellings consented in Q1 this year was $462,654, up $21,978 (+5.0%) compared to Q1 last year, and up $68,100 (+17.3%) compared to Q1 2022.

The increase in building costs is a reflection of all costs including Auckland council charges that could make up 20% of the build cost.

In Q1 2010, the average size of new homes consented was 202 square metres, and had steadily declined to 141 square metres in Q1 2024. That means the average size of new homes has declined by 61 square metres (-30%) over the last 14 years.

In the last two years, from Q1 2022 to Q1 2024, the average build cost has increased from $2695 per square metre to $3276 per square metre, up by 21.6%

We would hope that Chris Penk, Minister for Building and Construction can place some heat on Councils to reduce charges and increase transparency of compliance costs.

It is an issue that has plagued the construction sector previously as the market goes through a boom to bust cycle leaving the public unsettled and creditors out of pocket.  If you are considering building we suggest you talk with a number of credible building companies and lock in a fixed price to reduce surprises.

Let’s look at market sales:

Coatesville                               $3,370,000 to $4,150,000

Helensville                               $700,000 to $1,750,000

Hobsonville                              $585,000 to $2,300,000

Huapai                                     $1,020,000 to $1,950,000

Kumeu                                     $683,000 to $1,305,000

Massey                                    $590,000 to $1,515,000

Muriwai                                    $1,100,000 to $1,865,000

Parakai                                    $580,000 to $950,000

Riverhead                                $1,250,000 to $1,775,000

Swanson                                  $670,000 to $2,020,000

Waimauku                                $990,000 to $3,365,000

Waitakere                                 $1,275,000 to $1,800,000

West Harbour                           $910,000 to $2,700,000

Westgate                                 $715,000 to $1,380,000

Whenuapai                              $735,000 to $1,290,000

If you are looking to achieve a great result for the sale of your property please contact me today for a free pre-sale property checklist and appraisal that will provide a starting point in your decision-making.  After 18 years working with buyers and sellers, I have a depth of knowledge and experience to share with you. No cost, no obligation, just some honest feedback.  Call me, Graham McIntyre AREINZ directly at 0800 900 700, via text at 027 632 0421, or through email at graham.mcintyre@mikepero.com. Mike Pero Real Estate Kumeu/ Hobsonville. Licensed REAA2008.