By BRIAN FALLOW
The construction boom shows no sign of abating with councils issuing building permits worth more than half a billion dollars in September.
Local authorities issued consents for 2989 new dwellings, the highest September tally for 30 years.
The total was boosted by a larger than usual number of apartments,
647, but excluding them it was still the third-highest monthly figure ever - after July and August.
Statistics New Zealand said 45 per cent of the national total was in Auckland.
Building activity tends to follow the market for existing homes up and down, with a lag of about five months, and with the housing market strong it is likely builders will be busy well into next year.
Building firms' responses in yesterday's National Bank business confidence survey reflect that too - those who expect more work in the year ahead outnumber those who expect less by three-to-one.
Economists expect supply and demand for housing to come more into balance next year and the net inflow of migrants has softened recently.
Reserve Bank Governor Dr Alan Bollard signalled last week that the money markets were probably right in expecting him to start raising interest rates next year.
UBS Warburg chief economist Robin Clements said: "Backlogs and delays in getting builders are likely to mean these high levels of activity will persist into 2004.
"While fixed mortgage rates are off their lows - and a majority of mortgages are fixed - it is likely to be softer net migration which finally alters the balance between supply and demand, but not until next year."
The value of the new dwelling permits issued was $502 million, or $977 a square metre.
When the value of alterations, additions and outbuildings such as garages is added, the value of the work approved was $597 million.
Building consents
New consents issued in September:
Auckland 578
North Shore 116
Waitakere 163
Manukau 309
Rodney 120
Whangarei 58
Hamilton 161
Tauranga 125
Wellington 42
Christchurch 209
Queenstown-Lakes 44
Source: Statistics NZ
