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


NZ house values rise at slowest annual pace in 6 months

NZ house values rise at the slowest annual pace in six months in March, QV says

April 7 (BusinessDesk) – New Zealand property values increased at the slowest annual pace in six months in March as lower Christchurch valuations, high-debt lending restrictions and interest rate hikes weighed on the market.

House values rose at an 8.8 percent annual pace in March, the slowest annual gain since September when values rose 8.4 percent, according to state agency Quotable Value. Residential values rose 0.1 percent in the past three months, down from a 1.8 percent pace in the three months through February, as they were dented by a 1.5 percent decline in Christchurch values.

The Reserve Bank imposed loan-to-value mortgage lending restrictions in October to cool the market on concern rapidly accelerating house prices in Auckland and Christchurch could lead to an asset price bubble and cause financial instability. Governor Graeme Wheeler starting hiking interest rates last month to head off inflation and is expected to raise the rate further this month.

“The LVR speed limits and the Reserve Bank signalling further interest rate hikes is likely to be contributing to a levelling off in the growth of property values in Auckland and for the first time in more than two years we are seeing a decrease in some areas of that market,” said QV spokeswoman Andrea Rush.

Values in Auckland increased at a 14.3 annual pace in March, and are up 0.9 percent over the past three months. Values fell in some areas such as Auckland South which declined 0.5 percent in the past three months, QV said.

In Wellington, house values rose at a 2.8 percent annual pace, while Christchurch values increased at an 8.3 percent annual pace.

Nationwide, values are 12.6 percent above the previous market peak of late 2007, QV said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news