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

 


NZ property values rise at slower pace in January, QV says

NZ property values rise at slower pace in January, suggesting increased buyer caution, QV says

Feb. 10 (BusinessDesk) – New Zealand property values increased at a slower pace in January, suggesting restrictions on high debt lending and looming interest rate rises may have prompted buyer caution.

Values increased at a 9.6 percent annual pace in January, lagging December’s 10 percent rate, according to state valuer Quotable Value. Nationwide values increased 0.3 percent in January from December, when they increased 1.3 percent, the agency said.

The Reserve Bank introduced loan-to-value mortgage lending restrictions on Oct. 1 on concern rapidly accelerating house prices in Auckland and Christchurch may lead to an asset bubble and cause financial instability. The central bank is expected to start hiking interest rates from next month to cool the economy as inflation accelerates.

“Property value growth has slowed down in the first month of the year,” QV research director Jonno Ingerson said in the statement. “While this is the first month that values appear to have slowed, and generally we would wait for subsequent months before claiming a trend, the timing does align to the LVR speed limits.

“The predicted increase in mortgage interest rates in the near future are likely to also slow down values further,” Ingerson said. “This may in fact already be affecting buyer confidence and contributing to the slowing we are seeing.”

Values in Auckland increased at a 14.5 percent annual pace in January while Christchurch values rose 12 percent, compared with an 11.7 percent gain for main urban areas.

In provincial areas, values are variable with some experiencing growth, others remaining stable and in some cases a decline, QV said. Nationwide, prices are 12.8 percent above the previous market peak of late 2007, the agency said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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