Building consents drop

The total value of building work put in place fell to a seasonally adjusted $2.57 billion in the third quarter, according to Statistics New Zealand. The value of residential building work shrank 6.2% to a seasonally adjusted $1.365 billion in the September quarter, while commercial building work fell 5.7% to $1.2 billion.  

"These quarterly falls were mainly driven by falls in the volume of residential work," said Geoff Bascand, government statistician, in his report. "For the second time since this series began in 1989, the seasonally adjusted volume of residential building work put in place is below the volume of non-residential building work put in place."  

Rising property prices have helped underpin New Zealand's economic recovery as an influx of expatriates and new migrants in need of housing creates a sellers' market as dwindling building consents kept supply tight. House values rose 1% in the 12 months through November, according to state-owned QV Valuations, though the central bank is cautious about the sustainability of these rises as they remain high relative to incomes.  

ASB economist Jane Turner said the recovering "housing market has yet to flow through into a recovery in housing construction," though she expects "housing market has yet to flow through into a recovery in housing construction."