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

 

Commercial building permits in doldrums

NZ commercial building permits in doldrums, consents for new homes slide

June 29 (BusinessWire) – New Zealand’s commercial property sector stayed in the doldrums last month with permits for new construction down to a five-month low, while consents for new homes, excluding apartments, slid to their weakest level since January.

The value of non-residential consents shrank 40% to $289 million in May from a year ago, according to Statistics New Zealand data, and was down from $327 million in April.

That came in the same month that the government changed its tax treatment for property, removing claims on depreciation of buildings.

Consents for new homes, excluding apartment approvals, tumbled 9.5% to 1,333 new houses, from May 2009. Including apartments, new permits sank 9.6% to 1,360.

“The decline in consent issuance for shops and restaurants indicate some softness in private non-residential construction in the near-term. Furthermore, consent issuance of office buildings remains subdued,” said Jane Turner, economist at ASB. “Demand for new housing has started to peter out in recent months, with the RBNZ set to steadily increase interest rates over the next year.”

The property market has been subdued this year, in part because of the clamp down on tax loopholes associated with property investment, while the economic recovery brought forward the timing for the Reserve Bank’s tighter monetary policy, both of which have since occurred.

Inward migration has also been falling in recent months, after a surge during the depths of the global recession, further reducing pressure for new housing.

Investors snubbed the kiwi dollar on the back of the soft data, with the currency falling to 70.55 U.S. from 70.76 cents.

Statistics New Zealand said the trend for both residential and non-residential building permits is increasing, albeit at a slower pace.

The total value of consents issued for all buildings was down 3.9% to $9.55 billion in the year ended May 31. Of that, residential permits increased 8% to $5.61 billion and non-residential permits declined 17% to $3.94 billion.

(BusinessWire) 12:05:40

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>

ALSO:


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>