March housing consents up, but still below last peak

In perhaps a timely reminder to whoever replaces Reserve Bank governor Don Brash, Statistics New Zealand points out that although the trend in new housing consents has jumped 23% in the 15 months since December 2000, the level is still below the last peak in July 1999.

Friday, April 26th 2002, 6:41PM

by Jenny Ruth

The latest unadjusted figures show 1,986 new homes worth $333.7 million were approved in March, up from 1,745 worth $293.3 million in February and 1,762 worth $258.5 million in March last year.

While the 288 apartment approvals worth $32.6 million drove a large part of February’s overall increase in housing approvals, these actually fell in March to 223 worth $30.6 million. Apartment approvals were still well above the 182 worth $15.3 million approved in March last year.

The Reserve Bank has raised interest rates twice so far this year, with worries about the housing market overheating among its reasons.

"For the year ended March 2002, the average number of new dwelling units was 1,775 per month compared with 1,614 per month for the year ended March 2001. This is an increase of 161 units per month or 10%," Statistics New Zealand says.

Much of that increase was in Auckland, the market which most worried Brash, where consents have averaged 16.2% more in the last year than in the previous year. Otago also enjoyed a significant 49.2% average monthly increase while Canterbury consents have risen an average 6.6% a month. By contrast, Wellington region consents have fallen an average 7.8%.

The Reserve Bank’s latest monetary policy statement forecast annual average growth in building investment of 19% in the year ending March 2003.

Today’s figures show that in the year ended March this year, there were 21,302 new homes worth $3.357 billion were approved, up from 19,370 worth $2.834 billion approved in the previous year.

Taking inflation into account, that was still well below the 25,858 new homes worth $3.533 billion approved in the year ended March 2000 and the 25,585 new homes worth $3.252 billion approved in the year ended March 1998.

The number of apartments approved in the latest year was 3,103 worth $282.2 million, up from 2,116 worth $191.9 million approved a year earlier.

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