Consents fall 7.4% year-on-year

The homebuilding pipeline is continuing to dry up, with an ongoing reduction in the number of consents, according to the latest Stats NZ data.

A total of 33,595 new homes were consented in the year to February 2025, which was 7.4% lower than the year ending February 2024. That included:

  • 15,852 stand-alone house consents (up 2.3%).
  • 17,743 multi-unit home consents (down 15.0%).

 

Breaking down the multi-unit consents, approvals were given for:

  • 14,228 townhouses, flats, and units (down 14.8%).
  • 1,837 apartments (down 19.8%).
  • 1,678 retirement village units (down 6.5%).

 

How the building process works

Whether your clients want to build their dream home or a block of investment apartments, it’s vital they follow a structured process:

  1. Get finance pre-approval. Before approaching builders or architects, your clients should speak to a mortgage adviser. A pre-approval will give them a clear understanding of their budget and borrowing capacity.
  1. Choose a location and concept. Once they know how much they can spend, the next step is to find a suitable piece of land. At the same time, they should start thinking about design goals and requirements – for example, the size and style of the home or number of apartments.
  1. Engage professionals. Your clients will need a team that could include a mortgage adviser, architect or designer, quantity surveyor, builder and project manager. For apartments, they may also need a planner and engineer.
  1. Finalise plans and get consent. The architect or designer will create concept and detailed plans. These will then be submitted to the local council for resource and building consent.
  1. Start construction. Once consent is granted and finance is confirmed, the build can begin. A fixed-price contract can help manage cost blowouts.
  1. Get code compliance and settle. When construction is complete, the council will issue a code compliance certificate. At this point, the loan can be finalised and the property transferred into your client’s name.

 

If your clients need help from a good mortgage adviser, please introduce them to me.

 

 


Published: 23/4/2025
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