Building consents crash to record low 812 in January

Another strong signal of how the housing downturn is affecting New Zealand's economy emerged today as the number of building consents issued fell to their lowest on record in January. There were 812 residential building consents issued in January, down from the previous 22-year low of 1,127 in December, figures from Statistics New Zealand show. There were just 14 consents issued in Wellington central and 4 consents in Nelson. The total of 812 consents was the lowest montly total since the series began in 1965. The 28% drop in residential consents issued from December, and 53% drop from January 2008, shows clear signs that the residential construction market is under increasing pressure as credit availability dries up and the global recession continues to hit the New Zealand economy with increasing force. There were 67 apartment units granted building consent in January and 745 other dwellings consents issued. The value of dwelling consents fell 48% from January last year, to NZ$233 million. In Central Auckland, there were 46 consents issued (down 77% from January 2008, and 36% from December); 14 in Wellington (down 67% and 36%; and 59 in Christchurch (down 50% and 29%).