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

 


NZ property values rose 10% in 2013, QV says

NZ property values rose 10% in 2013; RBNZ loan limits likely to bite this year, QV says

Jan. 14 (BusinessDesk) - New Zealand property values climbed 10 percent last year due to the shortage of housing in Auckland and Christchurch, though Reserve Bank restrictions on low equity mortgage lending will probably start biting though the first half of this year, according to state-owned valuer Quotable Value.

National property values rose 3 percent in the final three months of 2013, and are now 12.5 percent above the previous market peak in late 2007, QV said in a statement. Auckland property values climbed 15 percent and Christchurch values rose 13 percent in the year, pacing the national gain.

Research director Jonno Ingerson said sales volumes grew month on month until October, when the Reserve Bank’s restrictions on low loan-to-value ratio lending came into force, but that the activity was still less than the boom between 2003 and 2007.

Ingerson expects the loan restrictions will have an impact on the market “for at least the first half of 2014” and have already led to a decline in the number of new listings.

The Reserve Bank imposed the restrictions as bubbling housing markets in Auckland and Christchurch, which typically account for half the nation’s property turnover, raised fears about the nation’s financial stability if there was a sharp correction.

QV’s Ingerson said the other factor likely to weigh on property market will be the expected interest rate increase, which will push up the cost of servicing mortgages.

“Nationwide values are likely to increase only modestly this year, but that will probably be as a result of everywhere outside of Auckland slowing, while the Auckland market itself will continue to increase,” he said.

Property values in Wellington increased at an annual pace of 3.1 percent in 2013 and Dunedin was up 3.8 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news