The number of building consents for new houses in Auckland has hit a record high.
Official numbers show 14,032 consents were issued in Auckland for the year ended June, a rise of 13 percent on the year before.
The growth was driven by demand for apartments and town houses, in particular.
Nationally, 34,761 residential consents were issued, with solid growth in Waikato and Nelson, but issuance easing in Bay of Plenty, Wellington, and parts of the South Island.
ASB senior economist Jane Turner said the sector was strong but it would not last.
“We believe house-building activity is likely close to a peak, but we expect residential construction activity to remain at high levels over 2019 in order for housing supply to make up the shortfall which has emerged in recent years. “
For the month of June, the number of consents fell 3.9 percent across the country, although the monthly numbers are often volatile, after they rose 13.5 percent in May.
The number of consents issued for non-residential buildings – such as offices, shops and factories – has held up despite the slide in business confidence.
Strongest growth over the past year has been for shops, restaurants and bars, warehouses, and factories.
Turner said it was the sector would keep being a positive contributor to the growth.
“We expect the housing market to benefit from a pick up later this year, underpinned by lower mortgage rates, which should provide additional support to house building demand.”