Building consents hit seven-year high

There were 2420 new dwellings consented for in the month, including 474 apartments.

Auckland and Canterbury contributed 70% of that total.

The seasonally-adjusted number of new dwellings increased 10% in November. Excluding apartments, it was up 2.1%.

Westpac's economists said the data was consistent with their expectation that construction activity would accelerate over the coming year.

"Consent issuance has now retraced all of the decline that occur ahead of last year’s election when there was increased uncertainty around the tax treatment of property...Combined with on-going reconstruction in Canterbury, conditions are lining up for a year of strong construction spending over 2015, particularly in Auckland. Today’s data comes on top of other favourable indicators for the housing market, including increases in house sales and mortgage approvals, as well as strong population growth. There are also signs that house price inflation is increasing, particularly in Auckland," they said.

Non-residential consent activity is also strong. The value of non-residential building consents increased 22% in the year to November.