House prices rise less than 2pc

Saturday 21 August 2004

Interest rate rises and declining migration are hammering the housing sector, particularly cheaper properties.

By The Landlord

Quotable Value's house price index released yesterday showed price growth pulling up fast, dropping from a 5 per cent index change in the March quarter - and a peak of 7.3 per cent last September - to just 1.9 per cent in the June quarter.

Quotable Value spokesman Blue Hancock cited interest rates and migration as the two main factors behind the turnaround.

"Continued annual house price growth at current levels is not likely to be sustainable in the medium term, given increasing interest rates and the downward trend in net migration," Mr Hancock said.

Although quarterly growth slowed, the annual house price index increased by 22 per cent, up on the 15.5 per cent growth rate to June last year, the data showed.

Read More - Opens in a new window
Commenting is closed

House Prices

House price drops are short-lived - Alexander

Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.


Resilience needed in face of change

The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.


Mortgage lending slumps to record low in April

Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.

Site by PHP Developer