Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


LVR caps unlikely to have a slow down property values

Media release
9th September

LVR caps unlikely to have a slow down property values

The latest monthly property value index shows that nationwide residential values continued to increase in August. Values have increased 8.5% over the past year, with an increase of 2.9% over the past three months. Values are now up 8.3% over the previous market peak of late 2007.


Click for big version.

Jonno Ingerson, QV.co.nz Research Director said “Auckland and Canterbury are still driving the national increase in values, with the other main cities seeing limited growth. The provincial centres have tended to be more variable, although for much of the year many have been slowly increasing. In the last couple of months however values have flattened or even declined in many provincial areas. It is not yet clear if that is likely to continue or was just a temporary slowdown.”

“The LVR speed limits imposed by the Reserve Bank were in part put in place to slow down the rapid growth in property values. They will definitely limit the number of first home buyers and investors who will usually require loans of more than 80% of the property's value. However the rapid increase in values in Auckland and Canterbury in particular is also due to a lack of supply rather than just high demand from potential buyers. So while the LVR limits may have some dampening effect on values, we should still expect them to increase for some time yet.”

Auckland
Values across Auckland are still increasing strongly. We have seen the highest increases recently in old Auckland City, Waitakere and North Shore; however, Manukau has also crept up again, with all four areas having increased around between 3.3-3.6% over the past three months.

Some areas within those cities have increased even further, with the North Shore Onewa area having increased 5.1% over the past three months and the eastern area of Auckland City having increased 5%. In stark contrast, Auckland City Central hasn’t grown as fast, with only a 1% over the past three months.

Overall, values across Auckland are 13.1% above last year, with Waitakere and North Shore seeing the highest annual increases, both above 14%. Auckland City is close behind at 13.8%. Again, some areas such as North Shore Onewa and Auckland City South are leading the way, sitting above 15%.

QV Valuer Bruce Wiggins said “Activity is still good, especially in suburbs close to the CBD and out West such as Blockhouse Bay. There also appears to be good demand from baby boomers especially for quality apartments in the city. We are however, seeing some negative sentiments surrounding leasehold properties, with buyers prepared to walk away in some instances in light of large ground rental increases.”

Hamilton and Tauranga
Hamilton values are still up, but growth is flattening compared to earlier in the year. Values are up 0.9% over the past three months, and 3.9% over the past year.

QV Valuer Richard Allen said “We are increasingly seeing buyers showing little interest in properties below $340,000, with first home buyers even setting their expectations higher than what we have seen in the past.”

Tauranga remains variable, with values currently 0.8% above this time last year, thanks to a slight lift over the past three months of 0.8%.

Wellington
Growth in the Wellington area is still limited, with some areas experiencing a small decrease in value over the past three months. Lower Hutt and Upper Hutt have seen increases just over 1% over the past three months, whereas Wellington City has remained the same and Porirua is down 0.4%. Overall, Wellington is up 2.8% over last year.

On closer inspection, Wellington City East has slowed down the most at -1.9% over the past three months, with all surrounding areas seeing very slight increases.

QV Valuer Kerry Buckeridge said “The market has been pretty flat, although there is reasonable competition and good prices still being paid for desirable properties. Due to Wellingtonians typically not listing over winter there is a lack of properties on the market. This is benefiting the properties that are listed, as they are facing less competition and attracting good prices.”

Christchurch and Dunedin
Christchurch values are still tracking well, with the annual increase sitting at 11.4%. There has been a 2.7% increase over the past three months in general for the city, however there are variances throughout the city. Values in Banks Peninsula have decreased over the past three months, at -2.1%, whereas on the other end of the scale the Southwest area has seen the highest increase at 3.7%.

QV Valuer Daryl Taggart said “Buyers are being cautious and not necessarily rushing in as they might have been previously. They appear to be waiting and looking out for good quality properties instead.”

Dunedin has continued to show limited gains in the back end of the year. Values have increased 0.3% over the past three months, leaving it 3.4% above last year.

Provincial centres
The provincial centres aren’t seeing as much growth as the main centres, however most areas are still up on last year. Whangerei, Taupo, Rotorua and Gisborne are all still up, although Whangerei has seen the most annual growth with 1.7%. Hastings and Napier have both dropped back over the past three months, as has Masterton and South Wairarapa. Carterton is the only areas in the Wairarapa to see any growth over the past three months at 2.2%, ensuring it is up 5.9% annually.

In the South Island, Nelson, Marlborough, Kaikoura and Queenstown are all up over 4% annually, although Kaikoura has seen a 3.3% drop over the past three months. Southland and Gore have some of the most noticeable drops, each seeing a decline over 4% over the past three months.

Tables:
PropertyIQ_Value_Index_Residentialpricemovement_31AUG2013.xlsx

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news