New Zealand building consents for residential housing dropped 8.3 percent in January as the number of new apartments and retirement units dwindled from records in November and December.
New dwelling consents, including apartments, fell to a seasonally adjusted 1,969 in January from 2,147 a month earlier, according to Statistics New Zealand. Excluding apartments and units, which are typically volatile from month to month, seasonally adjusted consents slipped 1.3 percent to 1,747.
Annual residential issuance rose 26 percent to an unadjusted 21,616 in the year ended Jan. 31 from the same period a year earlier. Of that, 19,112 new houses received consents, up 23 percent on the year and 2,504 apartments were consented, up 56 percent.
Auckland and Christchurch continued to drive new issuance, with the country's two biggest cities experiencing bubbling property markets due to a lack of housing stock.
Rising property prices, particularly in Auckland and Christchurch, became a headache for the Reserve Bank last year, which was loathe to lift interest rates in response for fear of fuelling demand for an already elevated currency. Instead, the central bank imposed restrictions in October on the level of low-equity mortgage lending banks could undertake as a means to reduce the level of riskier loans.
Today's figures show the value of non-residential building consents rose 29 percent to $289 million in January from a year earlier, and were up an annual 8.9 percent to $4.24 billion. The value of all building consents rose 26 percent to $930 million in January from a year earlier, and was up 20 percent to $12.27 billion.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Transmission Gully earthworks estimate undershoots by 50%
- Never mind the policy, feel the good intentions, Ardern says
- What New Zealanders feel about English and Ardern – and why it matters
- Fuji Xerox sues former executives
- Fuel crisis latest – pipe repair progress as government loosens rules for fuel trucks
Most listened to
- Labour leader Jacinda Ardern joins Simon Dallow in the NBR View studio this morning
- Housing strategist Leonie Freeman discusses the alarmingly low rates of new house builds in Auckland
- Jason Walls canvasses reaction to Labour exploring tax breaks for SME investment
- Synlait managing director John Penno on capacity constraints and supplying China
- NBR Radio: best of the week ended September 15, with Grant Walker