Sharechat Logo

New Zealand residential building consents slide in November after quake

Thursday 19th January 2017

Text too small?

New Zealand's residential building consents took a tumble in November on a seasonally adjusted basis, largely due to earthquake disruption in the capital city of Wellington. 

Seasonally adjusted dwelling consents fell 9.2 percent to 2,406 percent in November, after rising 2 percent in October, Statistics New Zealand said. Permits for new houses fell 7.7 percent to 1,634 following a 1.4 percent slide in October. The monthly figures were helped by a jump in Auckland permits, which rose 46 percent to 1,156. Consents in Wellington, however, dropped 57 percent to 132.

"Once processing capacity and application demand have returned to normal, we expect Wellington’s strong upward trend to continue," said ASB Bank senior economist Jane Turner. 

Record net migration is putting pressure on the nation's housing market where a shortage of supply is pushing up prices in Auckland, the country's largest city, making accommodation unaffordable for many. New Zealand's central bank has long signalled that an overheated housing market is a key risk to financial stability and that much of the solution lies in supply.

"Strong population growth over the past few years has lifted housing demand right across the country, and we expected momentum to continue at least for another year," ASB's Turner said. 

Today's data show the number of homes consented rose 13.1 percent to 30,303 in the year through November. Of those, 10,137 new homes were consented in Auckland, although still below the 13,000 estimated to be needed to keep up with an expanding population. In Canterbury, where the Christchurch earthquake residential rebuild is slowly winding down, 6,054 new homes were consented, down 9.1 percent from November 2015, Statistics New Zealand said. 

The value of building consents fell 5.1 percent to $1.58 billion in November from October. Residential building consents increased 2.5 percent in value to $1.17  billion, while non-residential permits fell 22 percent to $411 million. 

BusinessDesk.co.nz

  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:

MARKET CLOSE: NZ shares follow Asian markets higher on renewed hopes for China-US resolution
Housing Ministry head hints he acted against departed KiwiBuild head Stephen Barclay
NZ dollar heading for 1% weekly slide as outlook weakens
Currency frozen in multi-million dollar Cryptopia theft
NZ manufacturing activity hits highest level since April
Tilt affirms guidance; Dec qtr production misses long-term expectations
NZ dollar extends slide as Philly Fed lifts sentiment in US
January 18th Morning Report
MARKET CLOSE: NZ shares get further lift from positive offshore markets
NZ dollar extends decline amid mixed data

IRG See IRG research reports