Property

Housing confidence rises as prices slip

New Zealand housing confidence rose in the three months through January as falling house prices and cheaper borrowing costs revived the appeal of property as an investment.

Friday, February 27th 2009

A net 38% of respondents say now is a good time to buy a house, according to the ASB Housing Confidence Survey. A net 51% expect house prices will fall further in the next 12 months, while 49% see interest rates declining.
     
“The marked declines in interest rates are having a strong apparent influence on the shift in sentiment,” chief economist Nick Tuffley said in a statement. Still, “the weak state of the economy and mounting job losses will weigh on the market, and the current air of uncertainty is weighing on decision-making.”
     
New Zealand property values dropped 8.3% in the three months to January from a year earlier , according to QV Valuations. The central bank has embarked on its steepest easing cycle since introducing the official cash rate in 1999 as the economy has stumbled through a prolonged recession.
     
The ASB survey shows Aucklanders have become most upbeat, with 42% deeming now a good time to buy a house, while 53% see property prices lower by the end of the year. That compares with a rate of 38% in the rest of New Zealand who favour buying property now.
     
Building permits , excluding apartments, fell a seasonally adjusted 8.2% in January to the lowest level since the series began 17 years ago, according to a Statistics New Zealand report published today.

For the first time since June 1998 the value of non-residential building consents exceeded residential, by $362 million to $329 million.
     

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.