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.”
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