Here is graphic evidence that there is an “ugly” side of capitalism.
Capitalism is all about growth, the right to profit, and to deal. It is also the right to do nothing and builders are doing just that. The end result will be a chronic shortage of homes and its consequences.
In a relatively short time, the lack of new homes will become a hot political issue as the shortage leads to over crowding, rising rents and “shock horror” stories.
It also is laying the ground work for the next property boom (hard as it may seem to imagine at this time).
In 5-10 years from now we will look back and wish prices and rents would be so cheap again.
Published 30 June 2011 Bob Dey Property Report
Consents for new homes fell 16.3% in May from a year earlier, to 1139, and the annual consent rate fell 12.4% to 13,917.
The May consent figure was up by 200 from April and the highest monthly tally since November. There were 66 apartment consents, taking the annual tally for apartments to 1010.
Statistics NZ said today 68 Canterbury consents were identified as earthquake-related. The $28 million-worth of earthquake-related consents doubled the value of such consents issued since last September.
Consents were issued for $77 million of alterations & additions and $15 million of outbuildings, taking the total residential consents for May to $389 million, 19.3% below May last year.
The total value for all residential categories, $5.08 billion, is $533 million less than for the previous year, a 9.5% fall.
Auckland consents for the month fell to 236 (321 a year ago), Northland rose by one to 52, Waikato fell to 163 (202), Bay of Plenty fell to 72 (67), Wellington fell to 89 (141), Canterbury rose by 14 to 251, Otago by 10 to 85.
Consents around Auckland – using the old council boundaries except for Franklin, which has been sliced in half – for May were Rodney 52 (63), North Shore 33 (48), Waitakere 28 (40), Auckland 60 (56), Manukau 40 (73), Papakura 14 (21), Franklin 9 (27 for the whole former district).
Non-residential construction for the month rose 17.2% to $350 million ($299 million) but is still down 6.5% for the year to $3.695 billion ($3.95 billion).
Total consents, including the $33 million ($40 million) of non-building construction, fell 6% for the month to $771 million ($820 million) and 8.5% for the year to $9.185 billion ($10.036 billion).