Dwelling consent numbers rise again

The rebound was led by a 5.9% mom rise in consents for single unit dwellings, a Deutsche Bank NZ Data Flash report shows.

The number of consents issued for single unit dwellings rose 8.0% year-on-year.

However, total consents remained 8.7% lower than a year earlier, due to a 58% yoy decline in consents issued for apartments (from a very high February 2006 reading).  

The best short-term indicators of future issuance, says the report, are prior developments in total home sales and the residential construction intentions index in the NBNZ business survey.

Both of these indicators are suggesting that dwelling consent issuance is likely to continue to strengthen over the next three to four months.

Deutsche Bank estimates that the average price per square metre in the residential sector stood at $1,39 in the three months to February; up 9.0% yoy.

Rising construction costs are once again likely to be a key feature of the CPI report in April, it says.

The value of consents issued for non-residential buildings stood at $273 per metre in February. Consents issued in the three months to February fell 6.2% yoy, while consents issued in the 12 months ended February fell 4.9% yoy.

Deutsche Bank concludes that after recording a “very substantial” increase in 2004 and 2005, activity appears to be easing modestly in this sector.  

The total value of all consents issued in February was $899 per metre, up 0.7% yoy – “a decline in real terms given ongoing and significant construction cost inflation,” the report says.

“The value of consents issued for dwellings rose 6% yoy despite the fall in the total number of consents issued, reflecting higher construction costs and a larger average floor area per consent issued.”

Total consents issued for the three months to February rose 0.3% yoy.