Consents down as building hits slump in North

Building consents are down in Northland.

Northland's building sector had a slow start to the new year with a drop in the number of building consents issued in the first month of 2015.

Statistics New Zealand data showed Whangarei had 22 building consents issued in January while there were seven issued in the Far North and 13 in Kaipara.

This was a decrease from the 37 in Whangarei and 16 in the Far North during January the previous year. There was however, an increase in Kaipara from the nine building consents in January 2014. The value of buildings consented in January in Northland totalled $12 million, down from $18 million in January the previous year.

Owner of KPH Construction John Whitlow said business in the Far North had been particularly quiet.

"We have no inquiries for the past four months which is not normal," he said. "The phone never rang in January, at all. Normally the holidaymakers are ringing. We are currently building two big houses and doing an old people's home but we haven't taken consents out in over a year.

"There is just no work. We have been abandoned by the Government. There is no money coming North and everyone is wanting to move to Auckland."

Mr Whitlow said another factor was a slump in property prices.

"To build a 100sq m up here would cost around $100,000 plus the land and then you have to put all your services in place so about $200,000 all up. You can buy a house in some pars of Kaipara for $100,000 so why would you build one?"

Mr Whitlow said rumours of a future development may be the saving grace for Northland building companies.

"It is a situation many are facing in Northland. Consents are way, way down, although there is talk of Chinese development up here. If that comes about, there will be work for everyone up here for a few years."

Nationally, the number of new building consents issued dropped by 3.8 per cent in January 2015, compared with December 2014. A total of 1703 new dwellings were consented in January 2015, including 314 apartments, meanwhile in December, there was 2199 building consents issued.