NZ building consents sink 8.2% in January as Canterbury drops off
Seasonally adjusted consents across all dwellings dropped 8.2% to 2245 in January.
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New Zealand building consents fell last month as a drop-off in Canterbury construction intentions offset growth in other regions, although Auckland continued to lag behind the estimated level needed to match growth in housing demand.
Seasonally adjusted consents across all dwellings dropped 8.2% to 2,245 in January, while housing consents sank 5.6% to 1646, its steepest decline since August 2014, according to Statistics NZ. On an unadjusted basis, new housing consents were 13% higher than a year earlier at 1286, helping offset a 24% drop in apartment permits to 89 and a 42% slump in townhouses, flats, and units intentions to 185. On an annual basis, new housing consents were up 5.7% to 19,183, with all dwellings up 9.5% to 27,124.
Consents in Canterbury dropped 38% to 289 in January from a year earlier, while Auckland permits were up 5% at 506 in the month. On an annual basis, Auckland consents were at 9275, still behind the 13,000 the city is estimated to need to match population growth.
"This was not unexpected after three consecutive months of strong growth in consent numbers led by Auckland and a December figure that was surprisingly strong in Canterbury, where residential rebuilding is winding down," Westpac Banking Corp industry economist David Norman said in a note. "A correction in Canterbury was expected but the scale of the fall was surprising."
Today's data also showed a pick-up in consents in Waikato and Bay of Plenty, with permits up 45% and 40% respectively. The two areas have been beneficiaries of investor demand since the Reserve Bank imposed tougher lending restrictions on investment properties last year.
The value of non-residential building consents fell 12% to $310 million, for an annual increase of 14% to $5.88 billion. Education buildings are leading gains in non-residential work, up 66% on the year to $1.14 billion, and second in annual value behind offices, administration, and public transport, worth $1.24 billion.
The value of all buildings rose 6.9% to $1.07 billion in the month, and increased 14% to $16.51 billion in the year.
(BusinessDesk)
Paul McBeth
Mon, 29 Feb 2016
Mon, 29 Feb 2016
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NZ building consents sink 8.2% in January as Canterbury drops off
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