Property

Building approvals climb for second month

Total issuance of permits for dwellings climbed for a second month, which may herald a turning point in slack building activity.

Tuesday, September 29th 2009

Building consents rose 1.7% in August, adding to a 4.5% increase in July, according to Statistics New Zealand. Permits for apartments fell to just 30, down from 55 in July.

"Building activity remains at very weak levels although is likely to be close to a turning point, given the tentative pick-up in consent issuance," said Jane Turner, economist at ASB. "Low interest rates, an increase in net migration and the recent pick up in house prices are factors which should underpin residential construction activity going forward."

Turner predicts a "soft" recovery, as unemployment rises, income growth slows and longer-term interest rates increase.

There are some signs of stabilisation in the property market. The median house price rose to $346,750 in August from $340,000 a month earlier, according to the Real Estate Institute. The length of time it took to sell a house fell to 34 days from 37 days.  

Reserve Bank Governor Alan Bollard has vowed to keep the benchmark interest rate at around current record low levels to avoid derailing a tentative economic recovery.Consents excluding apartments rose 2.8% seasonally adjusted, to the highest level since September last year.

The value of non-residential building consents rose 5.9% to $384 million from a year earlier.

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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