Residential building consents rise 1.3% in March to six-and-a-half year high

Michael Gordon, senior economist at Westpac

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

New Zealand building consents for residential housing, excluding apartments, rose to a six-and-a-half year high in March, snapping two months of decline.

Excluding apartments and units, which are typically volatile from month to month, seasonally adjusted consents rose 1.3 percent to 1,813 units in March, the most since November 2007, according to Statistics New Zealand. Including apartments, seasonally adjusted new dwelling consents rose 8.3 percent to 1,999.

Annual residential issuance rose 30 percent to 22,366 from a year earlier. Stripping out apartments, annual permits for new building rose 25 percent to 19,768.

"The building industry is well positioned for strong growth in quake-related activity in Canterbury this year, and to a lesser degree, a lift from depressed levels in the Auckland market," Michael Gordon, senior economist at Westpac said in a note.

Issuance of new building permits has been on the rise as the Canterbury rebuild and a housing shortage in Auckland fuel demand for property. Increased construction activity is seen as one of the major drivers of accelerating economic growth this year.

Today's figures showed new dwelling consents in Auckland rose to 561 in March from 393 a year earlier, while new Christchurch permits to 342 from 126.

The value of non-residential building consents rose 13 percent to $4.4 billion in the year ended March while the value for residential buildings gained 32 percent to $6.9 billion. The value of all building consents rose 23 percent to $13.1 billion.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6563 -0.0002 -0.03%
AUD 0.8861 -0.0168 -1.86%
EUR 0.6001 0.0005 0.08%
GBP 0.4209 -0.0002 -0.05%
HKD 5.0891 -0.0016 -0.03%
JPY 81.4230 0.0540 0.07%

Commods

Commodity Price Change Time
Gold Index 1089.2 -5.700 2015-08-03T00:
Oil Brent 50.2 -2.020 2015-08-03T00:
Oil Nymex 45.2 -1.860 2015-08-03T00:
Silver Index 14.5 -0.230 2015-08-03T00:

Indices

Symbol Open High Last %
NZX 50 5957.9 5957.9 5957.9 -0.40%
NASDAQ 5111.0 5125.9 5115.4 -0.00%
DAX 11408.2 11476.9 11443.7 0.11%
DJI 17596.9 17635.8 17598.2 -0.11%
FTSE 6688.6 6715.5 6688.6 -0.03%
HKSE 24364.4 24519.3 24411.4 -0.02%
NI225 20462.2 20552.0 20548.1 -0.14%