Wellington, Jan 13 (NationPress) New Zealand witnessed 3,100 new homes approved in November 2024, marking a 4.8 percent rise compared to November 2023, according to data released by the country's statistics agency, Stats NZ, on Monday.

Of the newly consented homes, there were 1,402 stand-alone houses, which is a 4.1 percent decline relative to November 2023, while 1,698 multi-unit homes were approved, showing an impressive 14 percent increase for the same timeframe, as clarified by Stats NZ. These multi-unit homes encompass townhouses, apartments, retirement village units, and flats.

Michael Heslop, an economic indicators spokesperson from Stats NZ, noted, “Although the monthly count of consents has varied, the overall trend has remained quite stable over the past year.” He further added that the total new homes consented in November 2024 experienced a 5.3 percent increase compared to October 2024 when seasonal influences were excluded.

The approval of new stand-alone houses saw a slight reduction of 0.7 percent in November 2024, following a more significant 6.3 percent drop in October 2024, reported Xinhua news agency.

For the year ending November 2024, New Zealand saw a total of 33,609 new homes consented, reflecting a 12 percent decrease from the previous year ending November 2023. Heslop mentioned that the annual consent numbers have been consistently hovering around the 33,600 mark for the past six months, a decline from the peak of 51,015 recorded in the year ending May 2022.

Last October, the Reserve Bank of New Zealand indicated that households in New Zealand have demonstrated resilience despite significant fluctuations in housing prices over the past four years. The current activity in the housing market remains subdued, compounded by elevated interest rates.

Kerry Watt, the bank's Director of Financial Stability Assessment and Strategy, stated, “House prices continue to pose challenges for many potential buyers, remaining near the upper limits of our sustainable estimates. Banks are currently under competitive pressure to attract a limited pool of creditworthy borrowers.”

As monetary policies ease, borrowers may have improved capacity to incur additional debt. Nonetheless, Watt pointed out that the prevailing economic conditions have led households to exercise caution, with interest rates still high by historical standards and lending growth remaining low over the past year. The timeline for a resurgence in demand for new borrowing remains uncertain.

Residential properties constitute over half of the wealth of households in New Zealand, directly impacting financial stability, consumer confidence, and economic growth, according to a bank statement. Understanding the intricacies of the housing market is vital, especially as home loans represent over 60 percent of total bank lending.

Watt emphasized the need for vigilance in monitoring these trends and market dynamics to safeguard the financial system and the broader economy, noting that government policy changes are in progress to enhance the responsiveness of long-term housing supply.

He also mentioned that improved responses to housing demand will aid in moderating future house price fluctuations and enhance affordability, with debt-to-income restrictions playing a crucial role in tempering demand cycles and mitigating risk accumulation.