NZ: Dwelling consents fell 1.5% m/m in September – ANZ

Liz Kendall, Senior Economist at ANZ, notes that the number of residential dwelling consents in New Zealand fell 1.5% m/m in September (seasonally adjusted) which included a 32% m/m boost in Canterbury consents (sa) and was offset by a 14% m/m drop in Auckland and a 0.5% m/m drop elsewhere.

Key Quotes

“The number of residential consents is down 12% in the quarter, following strong consent issuance in the June quarter. Consents have been volatile of late.”

“Looking through recent volatility, residential investment looks set to end the year on a slightly softer note, albeit a softening from historically high levels.”

“Residential consents continue to drift south in trend terms, which if sustained, will make it difficult to maintain recent high levels of building activity.”

“Demand appears strong, but may be softening at the edges with the housing market softer and waning confidence. Industry challenges and delays may also be limiting activity.”