Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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."

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

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.

(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.