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

 


CORRECT: House values rise at slowest annual pace since Aug

CORRECT: NZ house values rise at slowest annual pace in nine months

(Corrects erroneous QV data in 5th graph)

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 2.6 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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news