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Source: ONE News -
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New building consent figures point to signs of recovery in house building but show the non-residential sector sinking further into a slump.
Statistics New Zealand (SNZ) figures published on Friday show consents were issued for 1275 new dwellings, excluding apartments, in September.
That is the highest number since July 2008, although just six dwellings above the level of a year ago.
Including the 155 apartment consents last month takes the total for September to 1430, the highest total in a year after apartment consents were an unusually high 366 in September 2008.
Deutsche Bank chief economist Darren Gibbs said the report confirmed a recovery in housing construction was gradually getting under way.
That was in line with a broader recovery in housing market activity and improving sentiment expressed by architects and others involved with the residential building sector in various business surveys, Gibbs said.
ASB economist Jane Turner said residential construction was poised to lift off current low levels.
But the lift in housing demand had been relatively muted and the recovery in residential construction was likely to be subdued, she said.
The decline in construction activity had created a significant amount of slack in the economy and had been responsible for much of the unwinding in inflation pressures during the past year.
The residential building authorised last month was worth $480 million, also the highest for a year.
When seasonally adjusted, the number of new dwellings authorised last month, excluding apartments, was up 2.8% from August.
"Although the level is still low, it is at its highest since August 2008," SNZ said.
The trend for the number of new dwellings authorised, excluding apartments, had risen 23% since March, following a 54% fall between the recent peak in May 2007 and the low in March.
Including apartments, the seasonally adjusted number of new dwellings authorised in September was up 3.3%, with the trend having been rising since January, although the rate of increase had eased in recent months.
The value of non-residential building consents in September was $257m, the lowest monthly value since January 2007, SNZ said.
Deutsche Bank's Gibbs said approvals stemming either directly or indirectly from government spending remained robust, with significant growth in the education sector and in the social, cultural and religious buildings sector.
"Indeed, government spending is masking weakness in large parts of the general business sector, especially industrial buildings, farm buildings and the accommodation and retail sectors."
For the September year, consents were issued for 13,616 new dwellings, 35% down on the September 2008 year.
The value of non-residential consents in the September year was just $2m up on a year earlier at $4.53 billion.
The value of all consents last month was $737m, 27% lower than a year earlier.
