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

 


NZ property values rise at slowest annual pace in 13 months

NZ property values rise at slowest annual pace in 13 months

By Paul McBeth

Aug. 7 (BusinessDesk) - New Zealand property values rose at the slowest annual pace in 13 months in July as rising interest rates, restrictions on low-equity home loans and the onset of winter took the heat out of the housing market.

Property values nationwide rose 7.6 percent in July from a year earlier, slowing from an 8 percent annual pace in June, according to state-owned valuer Quotable Value. That was the slowest annual increase since June last year. Sales volumes were between 15 percent and 25 percent lower than the same periods in 2012 and 2013, QV said.

Barfoot & Thompson figures this week showed Auckland house sales fell for a second month in July, adding to a national decline since the Reserve Bank of New Zealand imposed restrictions on mortgages where the buyers had a deposit of less than a fifth of the home's value, in October last year. Governor Graeme Wheeler started hiking interest rates this year, and last month said house price inflation had moderated since the June monetary policy statement.

"This slowdown is most likely due to the LVR (loan-to-value) speed limits and interest rate rises as well as the annual winter seasonal downturn," spokeswoman Andrea Rush said in a statement. "However, the Reserve Bank has now said it will take a break in rate rises for the moment and banks are advertising that they will negotiate on lending to those with deposits of less than 20 percent."

While today's figures show a slowdown in the annual rate of increase, property values rose 2.3 percent in the three months ended July 31, accelerating from the 2.1 percent pace in the June quarter, and a 0.7 percent three-monthly pace in May.

Low equity home loans dried up after the Reserve Bank imposed the restrictions, accounting for as little as 3.6 percent of new lending in March, but have since crept back up to 6.7 percent in June, according to central bank data.

QV said Auckland property values rose 2.1 percent in the three months ended July, slowing from a 2.7 percent three-monthly pace in June, and were up 11.7 percent annually.

Values in Wellington fell 0.9 percent in the three month period, and were up 1.2 percent annually, while Christchurch city values increased 2.1 percent in the rolling three-month period, and were up 6.5 percent from a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news