Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Building approvals continue to decline

Building approvals continue to decline as housing market crumbles

(See attached file: NZ_bldapps_27feb08.pdf [full release with charts])

Total building approvals bounced just 3.3%m/m in January after a 3.9% decline in December. The number of building approvals (excluding apartments) rebounded a mere 5%m/m in January after a sizable fall of 11.8% in December. Looking through the noise of the notoriously volatile month-on-month movements, the underlying trend in building approvals continues to head south. The trend in approvals (excluding apartments) is now down 7.6%oya, from -5.9% in December (chart).

The pendulum has swung from a seller's market to a buyer's market, and all the street signs are reading 'buyer's beware'. As a result, the supply of housing will continue to dry up in the short term as investors remain sceptical and concerned about the outlook for the housing market over the next few years. As seen in last week's ASB survey of housing confidence, only a small margin of 1% net respondents expect house prices to rise over the next year, compared to 12% previously. The survey is a good indicator of activity over the next two to three months, and suggests activity will be very subdued indeed. Furthermore, we have seen nothing but weak housing market data from the REINZ and QVNZ.

New Zealand's housing market is crumbling under the weight of higher interest rates and reduced net-permanent migration. JPMorgan expects house prices to contract in 2008, and remain subdued throughout 2009.

ENDS

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.