Building approvals up 30% in Feb from year ago, but trend growth stalling

Unadjusted building approvals in February rose 29.8% to 1,375 from February a year earlier, but trend growth has softened in recent months as concerns grow about how the May 20 budget will affect the tax landscape for rental property investors and a rebound in prices has chased away some buyers. Statistics NZ figures show the trend adjusted number of consents rose 0.3% in February from January, slowing from monthly growth rates of 2-3% seen from March to November. Here's more detail from Statistics NZ below.

In February 2010, consents were issued for: * 1,375 new dwelling units, including apartments * 1,362 new dwelling units, excluding apartments * 13 new apartment units. Excluding apartments, the seasonally adjusted number of new dwellings authorised in February 2010 rose 10 percent, after rising 1.0 percent in January 2010. The trend has been increasing since March 2009, but remains at a low level, and the rate of increase is showing signs of easing in recent months. Including apartments, the seasonally adjusted number of new dwellings authorised in February 2010 rose 5.9 percent, after falling 2.8 percent in January 2010. The trend has been increasing since the low in January 2009, but has been flattening in recent months. The trend remains at a low level and is similar to July 2008. The number of apartment units authorised (13 units) is the lowest monthly number since July1995. Apartments contributed 0.9 percent to the number of new dwellings in February 2010, compared with a monthly average of 10 percent for the previous 12 months. Apartment numbers can vary considerably from month to month. The value of residential building consents was $484 million in February 2010, 35 percent higher than in February 2009. The trend has increased since March 2009, following falls that began in July 2007. The level is now similar to the levels seen in mid-2008. More new dwelling units were authorised in 13 of New Zealand’s 16 regions in February 2010 compared with February 2009. In February 2010, numbers rose by 175 units (23 percent) in the North Island and by 141 units (48 percent) in the South Island. The regions with the largest increases were: * Canterbury, up 102 units (69 percent) to 249 * Auckland, up 88 units (40 percent) to 308 * Manawatu-Wanganui, up 43 units (215 percent) to 63. The Wellington region had the largest decrease, down 104 units, to 111 in February 2010. There were no apartment units authorised in Wellington in February 2010, compared with 137 in February 2009.