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

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news