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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.”