NZ:Residential Construction Consents Fall

Monday, July 4th, 2016
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New Zealand residential construction consents fell in May with Auckland permits still falling short of demand.

Seasonally adjusted consents slipped 0.9 per cent in May after rising by 6.8 per cent in April, Statistics NZ said.

House permits slid 4.9 per cent following a 15 per cent rise in April.

On an unadjusted basis, new housing consents were up 16 per cent to 2,520 in May from the same month a year earlier, and up 13 per cent on an annual basis to an 11-year high of 28,387.

Record net migration is putting pressure on the nation’s housing market where a shortage of supply is pushing up prices in Auckland making accommodation unaffordable for many.

The latest data shows Auckland building consents advanced 4.8 per cent to 732 in May from April, and were 13 per cent ahead of the same month a year earlier.

“Running annual totals for Auckland residential consents suggest that the number of annual consents is flattening out in the 9,300 to 9,600 range,” Westpac economist David Norman said.

“This slowdown in Auckland is bad news given the shortfall of housing in that city, but it appears to be the result of developers waiting for the Auckland Unitary Plan to be finalised before proceeding with development.”

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