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

 

Bad Day For Rope: Donaghys Job Losses Another Blow To Dunedin

The loss of 30 jobs from Donaghys rope and twine factory is yet another blow to the people and economy of Dunedin, says Dunedin South Labour MP Clare Curran. More>>

ALSO:

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

WWF Report: Solutions In Reach; World Biodiversity Suffers Major Decline

Global wildlife populations have declined by more than half in just 40 years as measured in WWF's Living Planet Report 2014. Wildlife's continued decline highlights the need for sustainable solutions to heal the planet... More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news