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Building consents still at record lows


One of the economy's main leading indicators, building consents, remains in the doldrums.

Rob Hosking
Thu, 30 Jun 2011

One of the economy’s main leading indicators, building consents, remains in the doldrums.

Today’s figures, released this morning by Statistics New Zealand, showed a continued decline, even though the rate of decline was less steep.

The trend for new dwelling consents was at its lowest since Statistics New Zealand began the series in 1982, with the number of new homes authorised in the North Island falling by almost a quarter, the department’s industry and labour statistics manager Louise Holmes-Oliver said.

An upturn in South Island consents was driven almost totally by the Christchurch earthquake. Overall three quarters of all the new consents issued in May were earthquake-related.

The value of new residential building consents fell $93 million, or 19%.

However non-residential consents rose, by $131 million, or 20%. Government-driven activity was the main factor, with large rises in hospitals and education buildings. However, shops, restaurants and taverns also saw a 22% increase.

The trend for commercially related activity was on a gradual upswing.

On an annual basis, the 12 months to May saw $475 million in building consents for factories and industrial buildings, well up on the previous 12 month figure of $340 million and a return to figures in line with the middle of the decade.

Farm buildings consents for the year were $184 million – a rise on the previous year’s $170 million.

Taken as a whole, however, the amount of floor space being approved for non-residential building was steadily falling.

The year to May 2006 saw 3.524 million square metres approved: the latest 12 month period was for 2.275 million square metres.
 

Rob Hosking
Thu, 30 Jun 2011
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Building consents still at record lows
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