Sharechat Logo

NZ home building consents tumble in June as economy shrinks

Tuesday 29th July 2008

Text too small?
New Zealand home building consents tumbled 20% in June, adding to evidence the housing market is continuing to weigh on an economy which probably contracted in the first half of the year.

The number of consents for new dwellings, including apartments, fell a seasonally adjusted 20% to 1,337 in June, Statistics New Zealand said. Excluding apartments, consents dropped 13%.

High interest rates and surging costs for fuel and food sapped demand in the housing market last month. The central bank has cut the official cash rate a quarter point to 8% since then, prompting lenders including ASB Bank to lower their mortgage rates.

"Housing is still in decline," said Robin Clements, senior economist at UBS New Zealand. "Consents probably have got further downside. For the rest of this year, residential building is going to be a drag on the economy."

Shares of Fletcher Building, New Zealand's biggest construction firm, fell 4% to NZ$6.22 and has slumped about 44% this year.

Consents in Auckland fell 15% to 5,752 while those in Canterbury, the second-largest region by number, fell 15% to 3,822.

The value of residential building consents fell 34% to NZ$455 in June in May from a year earlier, while non-residential consents dropped 18% to NZ$313 million.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Greenfern Industries Limited (NZX: GFI) Releases Interim Results
Hallenstein Glasson Holdings Limited (NZX: HLG) Announcement of Final Dividend
26th November 2021 Morning Report
EROAD Limited (NZX: ERD) Accelerates Towards Next Phase of Growth
Green Cross Health Limited (NZX: GXH) REPORTS STRONG HALF YEAR PROFIT OF $9.7M
Stride Property Ltd & Stride Investment Management Ltd (NZ: SPG) Placement Size Increased Following Strong Demand
General Capital Limited (NZX: GEN) Announces Very Strong Growth
25th November 2021 Morning Report
Gentrack Group Limited (NZ: GTK) Annual Results for the Year Ended 30 September 2021
Pacific Edge Limited (NZX: PEB) Results for Six Months Ended 30 September 2021