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 9 months

NZ house values rise at slowest annual pace in nine months

By Suze Metherell

June 6 (BusinessDesk) - New Zealand property values increased at slowest annual pace in nine months in May as interest rates increased and loan to value restrictions weighed on the entry point of the market.

House values rose at an 8.2 percent annual pace in May, the slowest annual pace since an 8.1 percent increase in August, according to state agency Quotable Value. Residential values rose 0.7 percent over the three months ended May 31.

New Zealand’s central bank hiked interest rates for the first time since the Global Financial Crisis in March to head off inflation. Rates went up again in April and the bank is expected to increase rates again next week, raising mortgage costs. Last October, the bank also introduced loan-to-value ratio limits on high-debt lending to cool the housing market on concern rapidly accelerating house prices in Auckland and Christchurch could lead to an asset bubble and cause financial instability.

"Sales volumes around the country are 10 to 15 percent lower than they were this time last year which could be a normal winter seasonal effect but it could also be a precursor to values dropping," QV spokeswoman Andrea Rush said in a statement. "The LVR lending restrictions continue to have an effect in many regions with activity significantly slower at the entry level of the market."

Values in Auckland increased at a 13.1 percent annual pace in April and were up 0.7 percent over the three-month period, QV said. Yesterday, the city's largest realtor Barfoot & Thompson said Auckland house sales dropped 14 percent to 1,109 in May from a year earlier, while its average sale price dropped to $702,966 from $708,603 in April, but was still up from $644,737 in 2013.

"In Auckland the picture is mixed," said Bruce Wiggins, QV valuer. Prices across the city had been variable with South Auckland picking up, but central suburbs like Grey Lynn and Ponsonby missing vendor's expectations, he said.

In Wellington, house values rose at a 1.8 percent annual pace in May, while Christchurch values increased at a 7.6 percent annual pace.

Nationwide, values are 13.9 percent above the previous market peak of late 2007, QV said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news