The number of consents issued for new homes has fallen to its lowest level in more than a year, Statistics New Zealand (SNZ) said today.
The seasonally adjusted number of new housing units, excluding apartments, fell 8.9 per cent during August, well down on the 6 per cent fall recordedin the month prior.
SNZ said consents for 1193 new dwellings and 36 apartment units were authorised during the period.
When the volatile apartment category is included, the seasonally adjusted number of new housing units authorised fell 18 per cent, following a 2.4 percent rise in July.
Statistics New Zealand's business statistic manager Louise Holmes-Oliver said the trend for consents issued for new homes, excluding apartments, has been falling since March, following increases that began in April last year
The current level is 39 per cent lower than the most recent peak during June 2007.
The value of consents issued for residential buildings was $473 million in August 2010, up 7.6 percent compared with a year earlier.
In contrast, the value of non-residential buildings was $296 million, down 23 per cent.
ASB Bank economist Chris Tennent-Brown said that from September onwards building consent data would be significantly affected by the Canterbury earthquake.
"Beyond Canterbury, our forecasts for the overall economic recovery in New Zealand contain a weak outlook for the construction sector. Today's building consent data are consistent with this view, but further weakness in ex-Canterbury consent issuance would imply weaker overall housing construction than we are anticipating," said Tennent-Brown.
"With a low level of activity in the housing market, there is little in the way of a catalyst beyond the earthquake to stimulate a pick up in residential activity," he said.
The three regions which recorded the largest changes from year ago figures were: Auckland, up 105 units to 321, Canterbury, down 44 units to 191, Waikato, down 42 units to 158.
