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

 

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news