New Zealand's residential property sector remained soft in September, measured by building consents, with the effects of the Canterbury earthquake adding to the woes of the struggling residential construction sector.
The seasonally adjusted number of new residential buildings authorised, excluding apartments, fell 2.6 per cent to 1,104 in September compared
to the previous month, the lowest level since July 2009, according to data release by Statistics New Zealand today.
The housing market remains "in the doldrums," said Philip Borkin, economist at Goldman Sachs & Partners New Zealand. Issuance and construction "looks set to remain lacklustre."
The trend for new dwellings, excluding apartments, has been falling since March, following increases that began in 2009. The current level is 43 per cent lower than the June 2007 level, a benchmark before the global financial crisis.
"The earthquake on September 4 has had an impact on building consents issued in Canterbury," said the department in a statement.
"The most affected territorial authority offices were closed temporarily, and the number of consents they authorised was lower than average. Only a handful of consents authorised in September were earthquake-related, and none were for new dwellings."
When the volatile apartment category is included, the number of new housing units authorised rose 0.5 per cent to 1,183, following an 18 per cent decline in the previous month. The value of residential building consents was $450 million in September, down 6.2 per cent compared with September 2009.
Fewer new dwellings were authorized in six of New Zealand's 16 regions in September compared with the same month last year.
The three regions with the largest decreases were Auckland, down 119 units, Canterbury, down 68 units, and Waikato, down 31 units. Wellington region has the largest increase in consents, up 27.
The value for non-residential building consents was $365 million in September, up 42 per cent compared with the same month last year.
Seven of the 11 building types recorded increases in the value of consents, led by hospitals and nursing homes, up $65 million, and office and administration buildings, up 19 million. Hostels and other short-term accommodation led declines, down $17 million.
