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

 


NZ property values rise at 9.2% annual pace in November: QV

NZ property values rise at 9.2% annual pace in November, QV says

By Tina Morrison

Dec. 9 (BusinessDesk) – New Zealand property values rose at a 9.2 percent annual pace in November, and continue to be driven by a shortage of houses in Auckland and Christchurch, although there appears to be some slowdown in buyer interest, according to state valuer Quotable Value.

Property values in the Auckland area rose at an annual 15.2 percent pace, ahead of the 14.5 percent pace last month. In Christchurch, values increased at a 12.4 percent annual pace, up from 11.8 percent last month. The national pace accelerated from 8.9 percent annual growth in October.

Rapidly accelerating house prices in the country’s two biggest cities have raised concern about an asset bubble emerging and prompted the nation’s central bank to introduce restrictions on high-debt mortgage lending on Oct. 1. Property market activity normally slows down at Christmas and the impact of the high loan-to-value lending restrictions should become clear by March, QV said today.

“While it is still too early to see any definitive effect on values from the LVR changes, there are signs of changes in the market,” QV research director Jonno Ingerson said in the statement. “There are reports of fewer potential buyers at open homes, longer marketing periods and fewer auctions selling on the day.”

The Reserve Bank, which is expected to keep interest rates on hold at a record low 2.5 percent this Thursday, has signalled rates are set to rise next year and further increases are likely should lending limits fail to stem rapidly rising house prices. Population expansion in Auckland is outpacing housing supply while Christchurch is being rebuilt following a series of earthquakes.

In other major centres, house values in the Wellington area rose at a 3 percent annual pace while Hamilton increased 5.5 percent and Tauranga advanced 3.5 percent.

Most provincial centres are still experiencing growth although it is limited in some areas, QV said. Gisborne is leading the provinces in the North Island with an annual increase of 2.9 percent while in the South Island, Southland prices rose at an annual 4.4 percent pace and in Gore prices accelerated 3.9 percent.

Nationwide values increased 2.5 percent over the three months through November, compared with a 2.7 percent pace in the three months through October. Prices are now 11 percent above the previous market peak of late 2007, the agency said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news