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

 


NZ property values heat up in 2Q on Auckland, Christchurch

NZ property values heat up in June quarter, driven by Auckland, Christchurch

By Pam Graham

July 7 (BusinessDesk) – New Zealand property values grew at a faster pace in the June quarter as the country’s two biggest cities continued to underpin the market.

Values rose 2.1 percent in the three months ended June, accelerating from a 0.7 percent three-monthly pace in May, according to state valuer Quotable Value. On an annual basis, the pace of property value gains continued to slow, rising at an 8 percent annual pace in June, and compared to an 8.2 percent in May. Values are still 15 percent above the previous peak of late 2007.

“The nationwide index is still increasing but the picture around the country is mixed,” Andrea Rush, QV’s national spokeswoman said in a statement. “Residential property values in Auckland and Christchurch are still increasing at a similar rate to what they were last June.”

The Reserve Bank introduced loan-to-value mortgage lending restrictions on Oct. 1 last year on concern rapidly accelerating house prices in Auckland and Christchurch may lead to an asset bubble and cause financial instability. Property value growth had slowed earlier this year, and the central bank has hiked interest rates three times to cool the economy as inflation accelerates.

Today’s figures showed the Auckland market increased by 12.3 percent year-on-year and values are up 31.4 percent since 2007. Values rose 2.7 percent in the past three months. Manukau East was the strongest performing part of Auckland, clocking up a 4.3 percent rise in the past three months. Waitakere values rose 2.3 percent.

Values in Wellington decreased 0.4 percent in the past three months, with the western suburbs falling 2.5 percent in the past three months.

Property values in Christchurch have increased 2.5 percent in the past three months and 7 percent year-on-year and are 21.1 percent above the peak of 2007. The Selwyn and southwest parts of the district are performing the best. Liquefaction was a problem on the eastern side of the city when earthquakes struck.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tubes: Tasman Global Access Cable Goes Live

Spark, Vodafone and Telstra have today announced the Tasman Global Access (TGA) cable is officially in service and ready to carry vast quantities of Internet traffic between New Zealand and the world. More>>

ALSO:

Theresa Does: Brexit Letter Sees NZD Touch Week-High Vs GBP On Brexit

The New Zealand dollar rose to a week-high against the British pound and euro after UK Prime Minister Theresa May officially triggered Britain's exit from the European Union. More>>

ALSO:

Statistics: Business Research And Development Up 29 Percent

Computer services and machinery manufacturing firms led the way in an almost 30 percent lift in business spending on research and development (R&D) in 2016, Stats NZ said today. Businesses spent $1.6 billion on R&D in 2016, up $356 million (29 percent) from 2014. More>>

ALSO:

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news