Building approvals climb again, helped by rates

Building permits rose 3.5%, seasonally adjusted, in May after gaining 12% in April, according to Statistics New Zealand. Excluding apartments, consents fell 3.1%.

Much of the increase reflected permits for units in retirement villages, which are classified by the government statistician as residential apartments.

Investors are looking for signs of a revival in the property market after the central bank kept the official cash rate at a record low 2.5% this month and said rates will stay low until the second half of 2010.

Figures last week showed net migration rose to its highest in almost six years in May, with a seasonally adjusted net 2,690 arrivals, the most since July 2003. Robust inbound migration helped fuel the nation's property boom over the past decade and fanned consumer spending as new arrivals sought homes and the appliances and furniture to fill them.