Sharp drop in new housing

Press, 14 June 1978, Page 12

Sharp drop in new housing

PA Wellington Permits authorising the construction- of 1746 new houses and flats with a value of $43.7M were issued in March, 1978, a decrease of 37.1 per cent in number over March, 1977, and a decrease of 28 per cent in value, says the Government Statistician (Mr E. A. Harris). The figure brings the number of dwelling units authorised for the 12 months ended March, 1978, to 21,086 compared with 30,060 for the previous financial year and 32,189 for 1976. Of the 1746 units, 264 were authorised by the State compared with 267 in March, 1977. The value of new dwelling permits was $500.3M for the March, 1978 year, compared with $632.1M and $593.4M for 1977 and 1976 respectively. There were 1600 dwelling units started, 1700 com-

pleted, and 30 created by conversion during March, 1978, compared with 2900 started, 3000 completed and 30 created by conversion in March, 1977. For new buildings, other than houses and flats, permits valued at $38.6M were issued in March, 1978, compared with $342M in March, 1977. Permits for dwellings and other buildings (including alterations and additions) issued for March, 1978, covered construction to the value of $106.3M, compared with $118.9M in March, 1977. The total of 24,200 new houses built in 1977-78 was a “reasonable and re’ alistic result in the circumstances.” said the Minister of Housing (Mr Holland) commenting on the statistics. “The result is even more interesting in the light of predictions from the building industry and the Opposition that the in-

dustry would be lucky to reach 20,000,” Mr Holland said. Circumstances had changed greatly since the target of 26,000 to 28,000 was set in April last year. The Government had hoped for a more gradual transition to a lower and sustainable level of activity than eventually had been the case. “However the fall in demand for new housing came in spite of all the measures taken by the Government to assist the industry. Several major injections of finance totalling SIIBM into the private sector were made during the year, the last of them just four months ago. But still demand for new housing fell,” Mr Holland said. It was becoming increasingly clear that a growing number of firsthome seekers preferred to buy an existing home than to build a new one, he

The Government was moving towards giving this freedom of choice to those who borrowed from the Housing Corporation, and other lenders already gave this choice.

“We have a million houses in New Zealand for 3.25 M people and it is a fact that we are one of the best housed nations in the world. I am sure that the emphasis will continue to move increasingly to» wards improving the existing stock,” Mr Holland said. “This trend towards renewal and rehabilitation is already clearly reflected in the increased number of permits issued for alterations and additions work. The building industry will find itself doing more and more of this work in the future.”

However, the Government fully accepted the need for a strong, virile building industry.