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Residential building in Auckland at a record high

February 21, 2023

Residential construction in Auckland is showing signs of recovery with the total of new homes completed up five per cent in December compared to the same period in 2021[i].

In signs that the residential construction industry has maintained its momentum, Auckland Council issued 1226 Code Compliance Certificates (CCCs) for new dwellings in December.

Described as a reliable indicator of new housing supply, CCCs are issued when a building is completed and ready to be lived in.

The December total of 1226 was the highest recorded for the month of December since Auckland Council started its records in 2013.

In November, 1481 CCCs were issued, which was the third highest number recorded since 2013.

The total number of new homes completed in Auckland in 2022 was 13,865 - 2.9%  rise when compared to 2021, and an impressive 33% on pre-pandemic levels in 2019.

In other residential construction news, the New Zealand Government is proposing new changes to the Building Act to make mandatory energy performance rating requirements for buildings, and waste minimisation plans for construction and demolition projects.

The changes are part of its future climate change work outlined in the Government’s Emissions Reduction Plan (ERP), released by the Ministry for the Environment last year.

Under the proposed changes, all new and existing public, industrial and large-scale residential buildings will be required to hold energy performance ratings, and those intending to complete certain building or demolition work must have a waste minimisation plan.

The proposal also includes plans to change the principles and purposes of the Building Act, to clarify that climate change is a key consideration.

The proposal for a requirement for energy performance ratings is designed to help reduce energy bills and costs.

It will allow building users and owners to have an assessment of current energy use and options to help reduce energy consumption and manage peak electricity demand.

The higher the building’s rating, the property's value or rentability will increase.

Having access to a building’s energy performance will also help prospective owners or tenants in making buying or renting decisions.

[i] https://www.masterbuilder.org.nz/RMBA/News/2022%20News/Update_on_new_preliminary_energy_efficiency_proposed_changes_to_the_Building_Act.aspx