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stats watch
Statswatch July-Aug 2016
DWELLING CONSENTS REMAIN at high levels, while for debt it’s back to business as usual after July write-offs.
• Augustseesdebtreturntonormal.
• Julyconsentscontinuepositive.
DEBT BACK TO BUSINESS AS USUAL?
Our regular update on the state of debt in the broad hardware channel for August from CreditWorks (www.creditworks.co.nz)
shows that, after June’s startling improvements due to write- offs,we’rebackto“businessasusual”,withmostbuildingsector
more evident in the Canterbury region than the rest of the country.”
(SeealsoAlanJohnston’scommentaryonCanterbury’s 􏰂􏰁􏰂“􏰀bloodyproblem”onpage42ofthisissue.)
CONSENTS CONTINUE POSITIVE
Statistics NZ’s consent figures for the July month released in September (www.stats.govt.nz) show the actual value of building work consented in July 2016 as $1.6 billion:
• Residential:$1.0billion(+5.9%onJuly2015).
T
OU
SO
lev
els a
s in p
revio
us
• No
New dwellings flat – In July 2016, building consents were
H
A
N
K
Y
T
groups maintaining the same sort of D
months.
Drilling into August DSOs – CreditWorks’ Alan Johnston issued for 2,811 new dwellings, which is marginally down on
SPONSORING
n-r
O
O
esident
ial: $
614
million (+35%).
U
R
says: “The Building Materials and Glass sectors on the surface July 2015 (–0.5%):
appeartohavetheoldestaveragecollectionperiodofaround62 • 1,761houses.
days. “Howeverthisneedstobebalancedbythefactthereisstill
around4%ofthetotaldebtinthebuildingsectorrepresented by unallocated funds, which have yet to be applied to the aged accounts.”
Although it is not possible to determine which ageing buckets this $14 million will be applied to, it is safe to assume it will have a positive impact on DSOs of around 3-4 days.
Overall debt “steady” – Overall debt levels are reported as “steady”, despite a slight increase of 2% on last month and 3% up on last year.
• 436townhouses,flats&units. • 425apartments.
• 189retirementvillageunits.
Modest gains around the regions – The number of new dwellings consented in July 2016 was higher than in July 2015 in just over half of the 16 regions and, except for the following, most of these increases were modest:
• BayofPlenty:+22%to221.
• Wellington: +19% to 126.
The regions with the largest decreases were: • Canterbury: –16% to 543.
PARTNERS
Around the regions, market growth in the Canterbury region • Auckland: –2.6% to 1,087.
has slowed, whereas the Auckland market continues to grow at a steady rate.
This growth is also reflected in debt levels and, adds Alan Johnston: “It is fair to say also that the aged debt problem is
Dwellings +13% for 12 months to date – In the year ended July 2016, 29,084 new dwellings were consented (+13%), which is the highest total for a July year since 2004.
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