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

 

Auckland housing stokes rebound in October building consents

Auckland housing stokes rebound in October building consents

By Paul McBeth

Nov. 30 (BusinessDesk) – New Zealand building consents bounced back last month, signalling a flurry of new construction intentions in Auckland’s residential property market.

The number of new dwellings approved, excluding apartments, rose a seasonally adjusted 7.1 percent to 1,123 in October and was up 11 percent including volatile apartment issuance, Statistics New Zealand said in a statement. A 46 percent increase in the number of permits to build in Auckland underpinned the national gain.

That turns around last month’s sharp decline in issuance, and is the seventh monthly gain this year. Still, total residential building consents have dropped 15 percent in the year ended Oct. 31 to 4,864, and a 6 percent decline in the annual value of new building to $3.75 billion.

“The current pace of consent issuance is up slightly from lows recorded over the first half of 2011, but remains at extremely weak levels,” ASB economist Jane Turner said in a note. “Over the coming year, we expect to see underlying demand for housing construction to increase, supported by tight housing supply, rising house prices (particularly in Auckland) and low interest rates.”

The country’s biggest city is one of the few regions to show a marked improvement in the property market over the past two years, with values just below the late 2007 peak according to the latest Quotable Value report, bumping up the national average. New Zealand’s nationwide housing market has struggled to recover from last year’s trough amid tepid demand for property as households use record low interest rates to repay debt rather than take on a mortgage.

The value of non-residential building consents issued rose 1.5 percent to $276 million in October, led by an $18 million increase in the value of office and administration building consents to $43 million. The annual value fell 1.6 percent to $3.69 billion in the year ended Oct. 31.

“The rebound in commercial construction intentions seen in the latest business confidence survey indicates businesses are feeling confident enough about demand over the coming year to plan for an expansion of operations,” Turner said.

The value of all building consents issued rose 7.1 percent to $736 million in October, and was down 9.7 percent to an annual $8.56 billion.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: