LVR's have not cooled Ak & Northland's property prices
LVR restrictions have not cooled Auckland and Northland's property prices
The LVR restrictions do not appear to have had any cooling effect on the residential property market, with the average sales price up 4% on the September figure. The October average price of $645,259 is the highest recorded in the past 12 months.
The Government’s intention of easing rising prices is not working as there is an abundance of buyers who will continue to pay whatever price they need to secure a property. With stock levels low and immigration increasing, it is likely this will continue for some time yet. Auctions are now accounting for 44% of all listings. Vendors are well educated on methods of sale and understand auction is the best way to achieve a p remium price in a c ompetitive market.
Residential property available to buy is down 6.1% on the same time last year, and at current levels of sale there is enough stock to last for 3.2 months.
LVR restrictions will not alter the fundamental landscape of the Northern Region property market – which is low supply and high demand.
The Government recently announced the first batch of Special Housing Areas that will bring to the Auckland market 6,000 new homes. This is a positive move, however the majority of the houses will be built on the outskirts of the city instead of the fiercely sought after inner suburbs. Development needs to be focused on building upwards and providing affordable homes for people who work in the inner Auckland suburbs and aspire to live close by.