New Zealand’s building consents rebound strongly in November

New Zealand’s total dwelling consent issuance recovered strongly in November, owing to volatile multi-dwelling consents. The number of dwelling consents rose 10.8 percent sequentially in November, effectively reversing October’s sequential decline of 10.4 percent. Both moves were led by the volatile multi-dwelling component, which is estimated to have risen 38 percent sequentially, noted ANZ in a research report.

Issuance for ‘houses’ fell 1.3 percent sequentially, falling for the fourth straight month. From a floor-area perspective, most relevant for measure future construction, issuance is estimated to have dropped 1.6 percent sequentially.

Looking through the volatility, Statistics NZ trend estimates growth to continue. The nationwide trend measure is running at a 0.6 percent sequential run-rate, and is up 11 percent year-on-year. But every region is actually indicating a stronger rate of trend growth currently.

In seasonally adjusted terms, the consents level is still lower than the August result. On a three month-on-three month basis, it is down 0.9 percent.

“While there is plenty of demand and an upcoming more ‘active’ push from policymakers, supply is being challenged by capacity, capital and cost constraints”, stated ANZ.

The value of non-residential consents continues to be strong.

At 12:00 GMT the FxWirePro's Hourly Strength Index of New Zealand Dollar was neutral -46.2188, while the FxWirePro's Hourly Strength Index of US Dollar was bearish at -85.4435. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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