Building consents tumble, ensures rates stay low
New Zealand's building consents tumbled last month, adding to evidence that the household sector remains in a funk and ensuring the central bank won't rush to hike interest rates.
Thursday, September 30th 2010, 12:00PM
by The Landlord
Seasonally adjusted consents for new residential buildings, including apartments, fell 17.8% in August, after a 2.4% increase in July, according to data released by Statistic New Zealand today.
Reserve Bank Governor Alan Bollard cited the weak housing market as a reason inflation will be restrained, when he kept the official cash rate at 3% this month, a level he has previously identified as being stimulatory to the domestic economy.
When the volatile apartment category is excluded, the number of new housing units authorised fell 8.9%, following a 6% decline in July 2010. Consents for apartments, which tend to leap about month-on-month, tumbled 96% to just 36, the lowest since February and down from 203 in July.
The value of residential building consents was $473 million in August, up 7.3% compared to the previous year, and is 32% lower than the June 2007 peak.
The value of non-residential building consents was $296 million in August, down 23% compared to a year ago.
Six of the 11 building types recorded decreases compared to the same month previously.
Social, cultural and religious buildings recorded the biggest decline, down $77 million, followed by hospitals and nursing homes, down $20 million, and education buildings, down$11 million.
The value of consents for all buildings fell 6.6% to $769 million compared the previous period.
| « Momentum building in house market, according to ANZ | Free Investment Property Showcase Events: Auckland, Wellington and Christchurch » |
Special Offers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
