Building consents on the rise

Official figures out today show a 6.1 per cent seasonably adjusted rise in the number of new dwelling units consents from a month earlier.

The figures were propelled upwards by apartment unit consents, which is a volatile number and can vary considerably from month-to-month, Statistics New Zealand (SNZ) figures show.

The unadjusted number of consents for new housing units at 2545 was the highest recorded number since March 2005 -- just before the introduction of the Building Act, which led to higher charges.

In August 2437 consents were issued for new dwelling units and in September 2005 the number was 2283.

The value of all building consents in September was $1.028 billion, compared to $1.056b in August and $1.01b in September 2005.

Residential building consents were worth $685 million from in September from $694m in August and $609m in September 2005.

Non-residential building consents were worth $343m from $362m in August and $401m a year earlier.

Apartment units accounted for 19 per cent of all units authorised in September, compared with a monthly average of 13 per cent for the year before last month, SNZ said.

The number of new dwelling units approved in September, excluding apartment units, was 2052, down from 2171 in August. The 493 apartment units approved, compared with 266 in August.

SNZ said the trend for the number of new dwelling units had been increasing since May, following a period of decreases that started in February.

For the year ended September, consents were issued for 25,990 new dwelling units, down 1102 units, or 4.1 per cent, from the previous September year.

The total value of consents issued for all buildings for the year was $11.16 billion, up $226 million, or 2.1 per cent. The value of consents for residential buildings rose $297m, while the value of consents for non-residential buildings fell $71m.

Among non-residential buildings, the largest decrease in value ($33m) was in social, cultural and religious buildings, followed by shops, restaurants and taverns, down $32m.

Office and administration buildings showed the largest increase, up $37m.

In the Auckland region 788 new dwelling unit consents were issued, up from 622 in August and 533 in September 2005. In Waikato the latest figure was 359 from 284 the month before and 312 the year before.

In Canterbury 403 consents were issued last month, from 334 in August and 315 in September 2005. Just 150 consents were issued in the Wellington region in September, only seven more than the number for Northland, and down from 193 in August and an unusually high 260 a year earlier.

Bay of Plenty had the largest monthly dip at 129, from a particularly high 302 in August and 211 in September 2005.

ANZ said the number of consents being issued was accelerating at a time when the Reserve Bank would like to see a substantial drop from present levels.

In its Official Cash Rate review last week, the Reserve Bank had noted the housing market remained resilient and it continued to look for a rebalancing of demand away from domestic spending towards exports, ANZ said.

A base support for new dwelling demand was provided by net migration which continued to creep higher, rising above an annual rate of 13,000 in the September year.

ANZ expected the number of residential consents to be maintained in the months ahead, with mortgage lending competition among retail banks effectively meaning people would be able to get two year fixed lending rates below 8 per cent.

- NZPA