"The November building consent issuance result is encouraging, indicating an improvement in house building demand"
- Christina Leung, an economist at ASB Bank
The number of New Zealand building consents granted by local councils for new homes rose 11% in December, driven by apartment developments. New dwelling consents, including apartments, surged to a seasonally adjusted 2,267 in November, compared to 1,891 in October, Statistics New Zealand said. However, excluding apartments, the seasonally adjusted number of new houses declined 0.5%. Last month, the nation's central bank exempted new home building from the lending restrictions on low-equity mortgages introduced in October amid concern they could restrain the new houses supply, which might decrease pressure stemming from increased demand in Christchurch and Auckland.
Another report showed that New Zealand's economy could be one of the fastest growing markets in 2014, creating even larger gap between its neighbour and the main trading partner—Australia, which is lacking a trigger towards economic growth. According to HSBC, New Zealand's economy could expand at 3.4% rate in 2014, while for the last year the bank expects a 3% growth. There are three signs pointing at a stronger economy, which include increased construction spending after the tragic earthquake in February 2011, low interest rate environment and a wave of net immigration, surge in demand for dairy products that boost rural incomes.
© Dukascopy Bank SA