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

 


UPDATE: NZ building consents on the rise

UPDATE: NZ building consents rose at fastest pace in three months in June

(Updates with economist comment)

By Tina Morrison

July 30 (BusinessDesk) - New Zealand building consents increased at the fastest pace in three months in June, rising a seasonally adjusted 3.5 percent, led by a surge in Canterbury.

The number of consents rose to a seasonally adjusted 2,104 in June from 2,033 in May, according to Statistics New Zealand. Excluding apartments, seasonally adjusted consents rose 2.9 percent. Unadjusted residential consents rose 27 percent to 1,950 in June from the same month a year earlier.

Building consent numbers have been on the rise, driven by the rebuilding of earthquake-damaged Christchurch and a shortage of supply in Auckland. Canterbury dwelling consents bounced back 22.5 percent in the month following some signs of softening over April and May, while Auckland consents rose almost 2 percent in the month, according to ASB Bank's seasonally adjusted figures.

"The June building consents data show a continued lift in house-building demand," Christina Leung, an economist at ASB, said in a note. "Today's result indicates the earthquake rebuild in Canterbury is firmly on track. Along with stronger house building demand in Auckland and improving non-residential building investment, we expect construction growth will continue to lead the New Zealand economy over the next couple of years."

The 6,827 dwelling consents issued in Auckland in the year through June is still below the 9,000 needed to be built each year to keep up with population growth in the region over the next couple of years, Leung said.

The value of non-residential building consents rose 32 percent to $490 million in June from May, the second-highest value on record behind $530 million in April 2009, the statistics department said. The figures aren't inflation adjusted.

"June was also a strong month for non-residential building consents, boosted by a $70 million approval for a hospital in Christchurch," Michael Gordon, a senior economist at Westpac Banking Corp. said in a note. "Setting aside its month to month volatility, there has been a strong uptrend in non-residential consents over the last three years, which is now starting to translate through to the actual building work figures."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news