The latest housing consents figures appear to confirm other indicators that the market remains robust: the number of approvals in May is the largest total for that month since 1976.
The latest Statistics New Zealand figures show there were 2,482 new homes worth $438.4 million approved in May, up from 2,232 consents worth $400.3 million in April, and compared with 2,282 worth $387.4 million in May last year.
The figures also showed a 3% increase after seasonal adjustment, but excluding apartment consents, they show a 1% decline. Apartment consents totalled 324 worth $34.3 million, down from 447 worth $61.5 million in April.
The government statistician’s trend series also fell 1.3%. The trend has been declining since November last year.
Of the May consents, 34% were in the Auckland region, although Auckland consents were 71 lower than in May 2002.
In the year ended May, there were 28,546 approvals, up 6,237 or 28% compared with the year ended May 2002 – the total number of approvals for the year ended May 2003 is the largest May year total recorded since 1977.
Ulf Schoefisch, chief economist at Deutsche Bank, says the figures are consistent with population growth levelling off and the monthly net migration figures being relatively constant over the past year.
They also suggest the residential construction sector will make a zero or even negative contribution to national growth going forward, he says.
