House building at 28-year high

Figures released yesterday by Statistics New Zealand showed that 3037 new dwelling-unit consents were issued in March - the highest total for that month in 28 years.

The numbers have been on the rise since April last year, and with serious labour shortages stretching resources, the sector is being seen as an inflationary hotspot.

Reserve Bank Governor Dr Alan Bollard raised the official cash rate on Thursday and mentioned that some data suggested a cooling of activity in the housing and construction sectors. But the evidence was mixed and pricing pressures remained strong, he said.

Many expect the latest rise to slow the housing market.

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