Townhouse consents defy credit constraints

Consents for attached dwellings (ie townhouses, flats, apartments, and retirement units) have pushed up to their highest level in over 12 years. This outcome seems surprising given the anecdotes over the last 12 months about banks clamping down on funding for larger-scale developments. Pressure from across the Tasman has tightened the availability of credit in New Zealand. Australia’s housing market has cooled, raising concerns that the same will happen here, while the Australian Prudential Regulation Authority has beefed up its capital requirements. The recent ratings downgrade of the big four Australian banks by Moody’s has only added to the angst about the banking sector’s exposure to New Zealand’s overvalued housing market.