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

 


NZ property sales fall in sign LVR curbs are biting

NZ property sales fall 7.6% in February as restrictions on high debt lending bite

By Tina Morrison

March 11 (BusinessDesk) – New Zealand property sales fell 7.6 percent in February from a year earlier, which may indicate restrictions on high-debt lending are hindering first-home buyers, according to the industry body representing real estate agents.

Some 6,125 properties were sold by real estate agents in February, down from 6,632 the same month last year, the Real Estate Institute of New Zealand said in a statement.

The median price increased 8.6 percent to $415,000 from the year earlier, possibly reflecting an increase in the sale of higher priced properties as the number of sales worth $600,000 to $1 million rose 9.2 percent, the institute said. Sales below $400,000 tumbled almost 18 percent.

House sale volumes have been dented by the Reserve Bank’s imposition of restrictions on high-debt lending last October on concern an overheated housing market, driven by shortages in Auckland and Christchurch, could threaten financial stability.

“The results for February show further evidence that the national sales volume trend is easing, with only two of 12 regions showing an increase in sales volumes compared to February 2013,” said institute chief executive Helen O’Sullivan. “Some regions are reporting increasing interest from first-home buyers while others report little in the way of activity.”

Property sales volumes increased 29.8 percent from January, reflecting a bounce following the summer holiday period. This year’s increase lags the 10-year average gain of 33.5 percent between January and February, the institute said.

The stratified house price index, which aims to smooth out peaks and troughs and is the preferred measure used by the Reserve Bank, is 8.2 percent higher in February than the year earlier month. The Auckland index rose 16.9 percent to a record, while the Christchurch index gained 6.8 percent.

The increase in prices “may be evidence of more activity taking place in higher price brackets, beyond the reach of most first-home buyers,” O’Sullivan said.

It took two days longer to sell a house in February from the year earlier month. The total value of residential sales, including sections rose to $3.17 billion in February, from $3.15 billion a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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