Stats NZ reported that new dwelling consents were up 20% year-on-year in June. While these record levels of issuance appeared encouraging for the residential construction industry, economists expect that these numbers will be short lived. Westpac senior economist Satish Ranchhod recently discussed how consents could be impacted by the lack of clarity surrounding COVID-19, “As we look to the year ahead, we expect that uncertainty around the outlook will see fewer new housing projects being consented. That trend will be reinforced by the sharp downturn in net migration and population growth already in train.”
With the recent outbreak of COVID-19 in the community, it’s easy to feel especially aware of how unpredictable life is at present. At times like these, it’s important to remember that we’re all going through this together and we’ve already proven to ourselves that we can adapt when things change.
