House-building likely to take off

Construction activity is likely to soar this year after the number of building consents issued reached their highest level for seven years in November.

Westpac senior economist Satish Ranchhod said consent issuing had ''retraced'' all the fall which occurredbefore last year's election, when there was increased uncertainty about the tax treatment of property.

Total residential consent numbers rose 10% in November.

The November figures were boosted by a strong increase in the volatile apartments category.

However, even excluding apartments, consent numbers were up 2.1%, Statistics New Zealand figures showed.

Mr Ranchhod said combined with ongoing reconstruction in Canterbury, conditions were lining up for a year of strong construction spending - particularly in Auckland.

''Today's data comes on top of other favourable indicators for the housing market, including increases in house sales and mortgage approvals, as well as strong population growth.''

There were also signs house price inflation was increasing, he said.

The strong construction outlook was not limited to residential property, with the value of non-residential building consents rising 22% in the year to November.

Strengthening domestic economic conditions were encouraging increases in business investment spending.

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House-building likely to take off