House building at 28-year high

By PAULA OLIVER

The building boom continues unabated, with latest consent figures again prompting statisticians to reach for the record books.

Figures released yesterday by Statistics New Zealand showed that 3037 new dwelling-unit consents were issued in March - the highest total for that month in 28 years.

The numbers have been on the rise since April last year, and with serious labour shortages stretching resources, the sector is being seen as an inflationary hotspot.

Reserve Bank Governor Dr Alan Bollard raised the official cash rate on Thursday and mentioned that some data suggested a cooling of activity in the housing and construction sectors. But the evidence was mixed and pricing pressures remained strong, he said.

Many expect the latest rise to slow the housing market.

There had been predictions this year that a rising official cash rate would dampen enthusiasm for building.

The bank lifted the rate in January, but it chose to hold the rate in March - a decision that at least one economist thinks encouraged more enthusiasm among home-buyers and home-builders.

Yesterday's consent figures showed that 31,423 new dwelling-unit consents were issued in the year to March, up 11 per cent on the corresponding previous year.

The value of consents for residential buildings was $674 million for the month - the highest since the statistical series began in 1973.

Canterbury led the growth charge, with 116 more units approved compared with March last year. The Auckland region was up 103 units, and contributed 39 per cent of the country's total number of new dwelling units for the month.

The value of non-residential building consents reached $322 million in March, compared with $213 million in February.

The total value of all consents issued in March was $996 million. That is the highest figure since the series began in 1976.