NZ: Dwelling consents fell 3.9% in June – ANZ

Analysts at ANZ note that the New Zealand’s number of residential dwelling consents fell 3.9% m/m in June (seasonally adjusted).

Key Quotes

“The monthly fall in June saw quarterly consent growth decline 0.6% in Q2, following a robust 12.2% rise in Q1. Previous strength in consents had been concentrated in multi-unit dwellings, and this rose further in Q2. However, consents issuance has continued to be very weak for houses, with housing consents falling 3.9% q/q.”

“Consented floor area – which better aligns to the volume of residential building work – fell 8% in the month to be down 4.7% q/q. Today’s release suggests that earlier strength in consents is unlikely to continue into the second half of the year.”

“Overall, issuance suggests balanced risk around our near term construction activity outlook, but we are wary of downside developing from here.”

“Quarterly growth in non-residential consents pulled back from a high level in Q2. Non-residential consented floor area has been volatile at a high level so far this year, suggesting non-residential activity may be topping out.”