Building consents up 6.8 per cent in August

The number of new dwellings approved in August rose by a seasonally-adjusted 6.8 per cent, Statistics New Zealand figures out today show, reversing the previous month's downward trend.

A seasonally-adjusted 2176 new dwellings were approved in the month. That compares with a revised figure of 2038 approvals in July, a fall of 6 per cent -- the first in three months.

However, the value of all building consents in August was $1 billion, 2.5 per cent lower than the same period a year ago.

Residential building consents rose 17 per cent to $633 million, compared with the previous year, and non-residential building rose 26 per cent to $387m with shops, restaurants and taverns the main contributors.

The rise was widespread, with nine out of 16 regions recording more new dwelling approvals than in August 2004.

Statistics New Zealand said the declining trend in new dwelling consents had flattened in recent months. Building consents have fallen, on a trend basis, for the past eight months.

Consents hit a nine-month high in March as builders rushed in to beat law changes and higher fees, which came into effect on April 1. Approvals in April fell to their lowest level since January 2002.

The dwelling consents series is volatile because of fluctuations in the number issued for new apartments, which accounted for 11 per cent of June's new consents, nearly double the rate in May.

Excluding new apartment units, the number of seasonally adjusted new dwelling consents was up 10.4 per cent on the previous month, but 4 per cent lower than the same month a year ago.

In the year ended August 30, there were 27,087 new dwelling unit consents issued, down 17 per cent on the previous August year.

- NZPA