Strong lift in July building consents

Roland Hiri, a builder from Jennian Homes, building a new house in Aramoho. Photo / Wanganui Chronicle.

The number of consents for new dwellings lifted strongly last month, particularly when apartment numbers were excluded.

Statistics New Zealand (SNZ) today said consents were issued for 1214 new dwellings in July. Of those just 55 were for apartments, the lowest number since last October.

The seasonally adjusted number of new housing units authorised, excluding apartments, rose 11.2 per cent from June, following a 3.8 per cent rise in June.

Although the level was still low, it was at its highest since last September, SNZ said.

Including apartments, the seasonally adjusted number of new housing units authorised rose 5 per cent, following a fall of 9.6 per cent in June.

ASB economist Jane Turner said the July figures suggested the construction industry was close to reaching a turning point.

Despite that, overall consent figures remained weak and the economic recovery remained fragile, threatened by rising longer term interest rates, she said.

While demand for new housing would be underpinned by a recent rise in net migration, rising unemployment and slow wage growth would moderate the increase in demand.

The value of residential buildings authorised last month was $442 million, 15 per cent lower than a year earlier. The value for non-residential buildings was $371m, 3.2 per cent lower than July 2008.

For all buildings, the value was down 10 per cent to $813m.

The 1214 consents issued in July was higher than all but one of the previous nine months, while the 1159 excluding apartments was the highest during that period.

On a seasonally adjusted basis the number of consents last month, excluding apartments, was also higher than during the previous nine months.

The trend for the number of new housing units authorised, excluding apartment units, had been rising in recent months, although it remained at a low level, SNZ said.

When apartments were included, the trend for the number of new housing units had risen for the past six months.

For the year to July, the value of residential buildings authorised was down 30 per cent from a year earlier to $5 billion, while for non-residential buildings it was up 7 per cent to $4.7b. For all buildings the value was down 16 per cent for the year to $9.7b.

- NZPA