New Zealand building consents bounced back last month, signalling a flurry of new construction intentions in Auckland's residential property market.
The number of new dwellings approved, excluding apartments, rose a seasonally adjusted 7.1 per cent to 1,123 in October and was up 11 per cent including volatile apartment issuance, Statistics New Zealand said in a statement. A 46 per cent increase in the number of permits to build in Auckland underpinned the national gain.
That turns around last month's sharp decline in issuance, and is the seventh monthly gain this year. Still, total residential building consents have dropped 15 per cent in the year ended October 31 to 4,864, and a 6 per cent decline in the annual value of new building to $3.75 billion.
"The current pace of consent issuance is up slightly from lows recorded over the first half of 2011, but remains at extremely weak levels," ASB economist Jane Turner said in a note. "Over the coming year, we expect to see underlying demand for housing construction to increase, supported by tight housing supply, rising house prices (particularly in Auckland) and low interest rates."
The country's biggest city is one of the few regions to show a marked improvement in the property market over the past two years, with values just below the late 2007 peak according to the latest Quotable Value report, bumping up the national average.
