40,000 new homes approved, breaking a 50-year record! New Zealand housing construction goes full steam ahead!
Last week, Stats NZ released New Zealand's GDP figures for the first quarter of this year. Strong growth in construction and services helped GDP rise by 1.6% over the quarter. Against a housing shortfall of up to 130,000 homes, the construction industry is enjoying an unprecedented boom. More than 40,000 new homes approved in a year marks the highest total in half a century, underpinned by government and bank support for new builds.
Government support ushers in a golden age of property development and construction
Although the government has introduced measures to rein in the current property market, this year's new tax policies give new builds special treatment to help ease the severe housing shortage. These include retaining a 5-year bright-line test for new builds and continuing to allow interest deductions. The government's favourable tax treatment of new homes provides ongoing incentives and support for property development and construction.
According to Stats NZ, 41028 new homes were approved nationwide in the year to March 2021, exceeding the record of 40225 set in February 1974. In Auckland, the council issued 1412 code compliance certificates (CCCs) for newly completed homes in March, up 24% on March last year and a substantial 108% on March 2019. This year's March figure was the highest monthly total since November last year.
The figures show that, since last year, Auckland Council has been issuing an average of more than 1000 code compliance certificates for new homes each month. Auckland's new housing supply has doubled over the past five years and continues to grow. In the 12 months to April this year, Auckland Council issued 12,768 code compliance certificates for new homes, the highest total since 2019.
Construction statistics manager Michael Heslop said: “New Zealand has never approved this many homes in any period. More than 40,000 new homes approved in a year breaks a half-century record, recalling the era when large new communities such as Auckland's Glenfield were built. More new homes are expected to be approved this year. We are now in a golden age of housing construction.” Record new housing supply is gradually easing New Zealand's current housing shortage.
Bank support: ICBC New Zealand launches an ultra-low home loan rate
Both the government and banks have been working this year on measures to address New Zealand's long-standing housing shortage. In April this year, ASB cut its one-year fixed home loan rate to 2.25%. At the time, Interest.co.nz said ASB's new rate matched the one-year rates offered by ICBC and HSBC and was below those of its main domestic competitors. Last week, ICBC New Zealand (ICBC NZ) introduced an even lower lending rate. Its one-year and 18-month home loan rates are now just 2.15%, making them highly attractive compared with those of other commercial banks.
ICBC New Zealand said: “As one of the world's largest financial services institutions, ICBC has always been committed to serving customers and giving back to society through excellent financial services and high-quality financial products. To fulfil our responsibilities as a major bank and promote the sustained, coordinated development of business, the economy, society and the environment, we are offering homebuyers more favourable mortgage rates in the hope of helping first-home buyers purchase a home.”
For details, please contact: 09 374 7266, operation@nz.icbc.com.cn
Lending manager: Ethan Da, 021498121
Yao Zhang 021 103 9102
