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 14 months

NZ property values rise at slowest annual pace in 14 months

By Suze Metherell

Sept. 4 (BusinessDesk) - New Zealand property values rose at the slowest annual pace in 14 months in August as restrictions on low-equity home loans, rising interest rates and uncertainty around this month's general election weighed on the housing market.

Property values nationwide rose 6.9 percent in August from a year earlier, slowing from a 7.6 percent annual pace in July, according to state-owned valuer Quotable Value. Housing values are now some 16 percent above the previous market peak in 2007.

QV's figures come ahead of the Reserve Bank's quarterly monetary policy statement, where Governor Graeme Wheeler is largely expected to keep interest rates on hold, after hiking them 100 basis points, to 3.5 percent, since March, in a bid to take steam out of an over-heating property market in Christchurch and Auckland.

In July, Wheeler said house price inflation had moderated since the June monetary policy statement. Barfoot & Thompson figures this week showed Auckland house sales declined for a third month in August, adding to a nationwide drop since the Reserve Bank placed restrictions on mortgages where the borrowers had a deposit of less than 20 percent of the home's price in October last year.

"Since September last year the growth rate of New Zealand residential property values has been slowing and this trend has continued over the past month," said QV national spokesperson Andrea Rush. "Sales volumes and home loan approvals are down year on year and interest rate rises, LVR restrictions and the upcoming election appear to be keeping the number of homes on the market low as well."

Property values rose 1.7 percent in the three months ended Aug. 31, slowing from a 2.3 percent pace in the three months ended July 31, and a 2.1 percent pace in the June quarter.

QV said Auckland property values rose 1.8 percent in the three months ended August, slowing from a 2.1 percent three-month pace in July, and were up 11.4 percent year-on-year.

Values in Wellington fell 0.5 percent over the past three month period, and rose 0.9 percent annually, while Christchuch city values increased 1.1 percent over the past three months, and were up 5.9 percent from a year earlier.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news