New Zealand’s residential building consents rose in April following wide jump in new housing intentions that climbed their steepest phase in almost eight years.
April residential building consents rose 6.6 percent, while seasonally adjusted consents rose to 2,390 in April compared to 2,242 in March, data released by Statistics New Zealand showed Monday. For houses alone, permits jumped 15 percent to 1,913, recording the biggest monthly gain since April 2008. On an unadjusted basis, new housing consents were up 28 percent to 1,742 in April from the same month a year earlier, and up 12 percent on an annual basis to 20,098, the most for an April year since 2007.
Permits for all dwelling types rose an unadjusted 12 percent to 2,361 in April from a year earlier, for a 12 percent annual increase to 28,038, an 11-year high. The slower pace of increase in all dwelling types was fuelled due to a slump in the number of apartments consented, especially in Auckland, the data organization reported.
“This second month of weakness does cause us to feel a little unease about the longer term track of residential consents in Auckland. A third weak month in May would be a real worry,” Westpac mentioned in a recent research note.
The NZ economy is undergoing the pressure of a housing boom as authorities look to make up for a shortage of supply through the latter half of the last decade, which was driven by underinvestment as property financiers fell over and has been compounded by record inflows of net migration, reports said.
However, the city of Auckland is facing the biggest housing shortfall with new building permits dropping to 699 in April from 912 a year earlier, though the value of those consents rose to USD267 million from USD240 million.