NZ building permits plunge in July, partly offsets the surge in June

Building permits in New Zealand plunged during the month of July, partially offsetting the previous month’s surge.

The total number of building permits issued in New Zealand plummeted a seasonally adjusted 10.5 percent on month to 2,811in July, data released by Statistics New Zealand showed Tuesday, following a 16.3 percent spike in June.

Among the individual components, permits were issued for 1,761 houses; 436 townhouses, flats, and units; 425 apartments; and 189 retirement village units. In the year to July, there were 29,084 new dwellings consented, up 13 percent on year.

The actual value of building work consented in July was NZD1.6 billion. On a yearly basis, residential work was up NZD58 million (5.9 percent) to NZD1.0 billion, while non-residential work was up NZD159 million (35 percent) to NZD614 million.

Building consents in New Zealand have experienced sharp pitfalls this year, especially in the more volatile apartment segment. Auckland has, however, remained the epicenter of the downdraft, although industry participants strongly believe that the market will soon witness a rebound.

Meanwhile, the Reserve Bank of New Zealand will release its latest business outlook on Wednesday that will provide an overview of the country’s business status through the eyes of veterans.