Weakening trend but housing consents still high
Tuesday 29 June 2004
Although housing consents are still at historically high levels, housing construction activity has declined for the fourth month in a row.
By The LandlordA consistent pattern of weakening housing construction activity is emerging, although housing consents are still at historically high levels.
The 2,544 housing consents worth $490.8 million issued in May were just one less than the number issued in April but in seasonally adjusted terms were down 0.5%. While not a huge drop, it was the fourth month in a row to show a decline.
Statistics New Zealand says its trend series has been declining since November last year.
National Bank economists note that excluding apartments, consents have been broadly unchanged since February in seasonally adjusted terms.
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There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.
LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.