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The number of new dwellings approved in New Zealand fell sharply in July, driven by a decrease in apartment permits, official data showed today.
Statistics New Zealand said the number of new dwellings fell a seasonally adjusted 15.5 per cent from June, to be 4 per cent lower than the same month a year earlier.
The Reserve Bank of New Zealand has cited strength in the housing and property market as its major inflation concern. Last month, it raised its benchmark cash rate for the fourth straight time, setting it at 8.25 per cent, but signalled that it was probably the last in the current cycle.
The agency said a seasonally-adjusted 2193 new dwellings were approved for the month against a revised 2594 in the previous month, which was up 14.2 per cent on May.
The unadjusted number of new dwelling consents issued for the month was 2160 compared with 2574 the month before.
The number of consents issued in June had been boosted by developers and builders rushing to beat a rise in official fees, which came into force on July 1.
The dwelling consents series is volatile because of fluctuations in the number of new apartments, which accounted for 9 per cent of approvals in July, compared with 22 per cent in June and an average of 12 per cent for the previous 12 months.
Excluding new apartment units, the number of seasonally adjusted new dwelling consents fell 1.4 per cent on the previous month. The unadjusted number of consents was 1.2 per cent higher than a year earlier.
The government agency said that on a trend basis, which removes seasonal and one-off factors, the number of consents issued in July rose 1.2 per cent on the previous month.
In the year ended July 31, there were 26,553 new dwelling units consents issued, up 3.3 per cent on the previous July year.
The total value of consents issued for the month for all residential buildings, including alterations and additions, was $679 million, up 11 per cent on the same month a year ago.
The value of consents issued for non-residential buildings was $353 million, up 25 per cent on the same month a year ago.
The value of consents for all buildings in the year through July was $11.9 billion, up 7 per cent from the previous year.
- REUTERS
