The number of seasonally adjusted dwelling consents increased 7.1% m/m in May for NZ economy, more than reversing last month’s 3.6% dip, notes the research team at ANZ.
Key Quotes
“Multi-dwelling consents lifted 7.9%, following a 7.4% decline in April and consents for ‘houses’ rose 6.5% after falling 1.0%. Consent issuance can be volatile on a monthly basis, but looking through this recent data suggests the residential construction sector is working very hard to grow in the face of margin pressures and capacity constraints. However, we wouldn’t be surprised to see a little payback in the coming months.”
“Overall, today’s figures are consistent with our expectation that activity levels will stabilize at a high level.”
“In annual terms, dwelling consent issuance is running at a high level of 32,600.”
“Cost pressures remain elevated. The value of consents per square metre is running at 2.8% y/y (3mma), down from 6.6% in April.”
“Construction activity is travelling at high levels, but the mix of cost pressures and capacity constraints, particularly a lack of skilled labour, are limiting the industry’s ability to grow.”
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