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Liz Kendall, senior economist at ANZ, notes that the New Zealand’s residential building consents increased 1.5% m/m in October, after finishing Q3 on the softer side.

Key Quotes

“Consents appear to have stabilised after softness in the September quarter. Consented floor area – which better aligns to the volume of residential building work – increased 10% in the month, after falling 5% in September. This bodes well for residential investment into the start of 2019. However, consents have been very choppy of late. Further growth will be needed in coming months to see activity levels maintained if not increase.”

“Annual consent issuance remains very elevated; a little over 32,700 new dwelling consents were issued over the past year.”

“Generally speaking, housing demand remains strong and supportive of further building work.”