National property market analysis November 2014

Please find attached national property market analysis from New Zealand’s largest real estate group, Harcourts.

The Reserve Bank’s announcement yesterday that LVR restrictions will not be lifted is hard news for provincial New Zealand, where written sales and prices continue to dip or remain stagnant.

Harcourts CEO Hayden Duncan says the restrictions have not had a large effect on the property market in Auckland and Christchurch, where they were designed to. Instead first home buyers outside of these two cities have been most affected.

In Auckland and Christchurch there has been a clear recovery from the winter lull that is traditional in real estate, with written sales up and average prices continuing to increase.

The provinces, by contrast, are continuing to struggle, with the South Island in particular failing to thrive.

“The Auckland and Christchurch markets are driven by low supply and high demand. LVR restrictions have not had an effect on prices, which continue to rise, because demand is growing and construction is not keeping up with it.

“Instead our provincial markets, which were never overheated, have been badly affected and average Kiwis trying to break into the property market have been prevented from doing so,” Mr Duncan says.

More than ever New Zealand’s property market is clearly divided – Auckland and Christchurch versus the rest of the country.

MarketWatch_November_2014.pdf

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