New Zealand home-building consents down to 2020 levels

NEW Zealand home-building approvals are declining as higher interest rates and a property market slump slow construction.

Second-quarter approvals fell 2.6 per cent from the previous three months, Statistics New Zealand said on Tuesday (Aug 1) in Wellington. The 10,107 consents are the lowest since the third quarter of 2020.

Quarterly consents have been in a downtrend since a peak in early 2022 as the Reserve Bank’s aggressive monetary tightening drove down house prices and consumer confidence. The decline in construction adds to signs the economy may struggle to expand in 2023.

The statistics agency said second-quarter approvals fell 20 per cent from the year-earlier quarter. There were 44,529 approvals granted in the 12 months through June, down 12 per cent on the year-earlier period, it said.

Earlier on Tuesday, Auckland-based glass distributor Metro Performance Glass told shareholders that activity in its key markets had declined but was expected to stay stable at those lower levels until the end of the year.

“Economic headwinds may accelerate a further activity decline at the end of 2023 and into 2024,” chief executive officer Simon Mander told the company’s annual meeting. BLOOMBERG