Housing consents drop sharply

Monday 6 September 2004

New housing consents dropped sharply in July, proving that the surge in June was an aberration largely caused by builders trying to beat fee increases from July 1.

By The Landlord

The 2,347 consents worth $459.8 million issued in July compare with the 3,447 worth $579.6 million issued in June and were down 10.5% from the 2,621 approvals in July last year.

In seasonally adjusted terms, the July consents were down 35.2% from June which recorded a revised 38.8% increase from May. Consents fell, seasonally adjusted, every month this year except for June and January and Statistics New Zealand says its trend series has been declining since January after steadily rising since April 2003.

The trend is even more marked if apartment consents are excluded – the July total of 2,076 houses was down 11.6% from July last year.

But apartment consents also dropped sharply in July to 271 from 977 in June and 306 in May.

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