New Zealand residential dwelling issuance consent likely to have dropped in August

The residential dwelling consent data for the month of July is set to release this week. In the prior month, residential dwelling consent issuance had dropped 7.6 percent. Nevertheless, that followed strong levels of dwelling consent issuance in the preceding months, and still left consent figures at a high level. Recent volatility in consents has been related to apartments and retirement villages, which tend to get issued in lumps.

“We expect that swings in this group will again contribute to a modest 5 percent fall in July (that follows a large increase in June centred on Wellington)”, stated Westpac in a research report.

The consent issuance in stand-alone and medium density housing in Auckland has taken a large step higher in recent months, underpinned by regulatory changes and solid population growth. Smoothing through month-to-month swings, issuance in these categories are expected to remain firm, added Westpac.

At 18:00 GMT the FxWirePro's Hourly Strength Index of New Zealand Dollar was highly bullish at -62.5687, while the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -29.7781. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex