Sharechat Logo

NZ residential building permits jump in November as apartments make up for shrinking house consents

Friday 12th January 2018

Text too small?

New Zealand residential building consents climbed 11 percent in November as a jump in apartments offset the fourth straight decline in new house permits. 

Seasonally adjusted new dwelling consents rose to 2,743 in November from 2,477 in October, Statistics New Zealand said. Of that, new house permits fell 1.3 percent to 1,694, dropping for a fourth month. 

"November’s rebound in home consents was driven by apartments, which tend to fluctuate a lot and were particularly low in October," construction statistics manager Melissa McKenzie said in a statement. "Looking at the longer-term picture, building consents for apartments and townhouses have seen double-digit growth year after year, while consents for stand-alone houses have levelled off."

Quotable Value figures yesterday showed New Zealand's property market cooled in 2017, with values rising at half the pace of 2016 as Reserve Bank-imposed lending restrictions, tougher credit criteria and political uncertainty saw activity shrink. The housing market had been on a tear in the prior years as a shortage of property coincided with a record influx of new migrants, helping swell the population and stoking demand. 

Auckland had been a major driver of much of the property market's strength in recent years, feeling the mismatch between supply and demand more acutely than other areas. Today's figures show permits in the country's biggest city rose to 1,450 in November from 1,118 in the same month a year earlier. That's the second-highest number of Auckland permits ever. 

The data show 31,123 new dwellings were consented in the 12 months ended Nov. 30, up from 30,399 a year earlier. The value of those permits rose 7.7 percent to $11.51 billion, slowing from the 24 percent pace a year earlier. 

New house permits shrank 0.8 percent to 21,178 in the 12 month period, while apartments climbed 33 percent to 3,137 and retirement village units were also up by a third to 1,969. Permits for townhouses, flats and units rose 14 percent to 4,839. 

The value of non-residential building permits climbed 34 percent to $549 million in November from the same month a year earlier, while the floor area consented shrank 11 percent to 215,000 square metres. On an annual basis, the value of non-residential permits rose 11 percent to $6.61 billion across a 6.8 percent increase in floor area to 2.91 million square metres. 

(BusinessDesk)

  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:

Prime Minister Jacinda Ardern pregnant, Winston Peters to step in as acting PM
NZ business confidence sours in December quarter on Labour govt jitters
NZ employment confidence steady, pay expectations and job security drop
Auckland house prices rise in 2017, more sold for over $1m despite fewer sales
IRD may treat crypto-currencies like gold held for profit, won't comment on Bitcoinica
The Year In Review: NZ stocks head for best year in five, may struggle to repeat gains in 2018
NZ current account deficit widens in 3Q as dairy exports fall, more Kiwis travel
IRD to get increased powers to extract info from multinationals under new tax law
Napier Port profit hits record in 2017; eyes more capacity for cruise ships, greater cargo loads
Cullen-led tax working group tasked with finding fairer tax system

IRG See IRG research reports