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

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news