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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news