Kiwis expect prices to carry on rising: ASB

Wednesday 8 May 2013

Almost two-thirds of people expect house prices to continue to rise over the next year, according to the latest ASB Housing Confidence Survey.

By The Landlord

That is the strongest level recorded by the survey.

In the three months to April, a net 63% of respondents said they expected prices to rise over the next 12 months, above the previous peak of 61% in January 2003.

ASB chief economist Nick Tuffley said: “The strongest lift in house price expectations came from the South Island excluding Christchurch, reflecting a broadening in housing market activity over the past six months.”

He said  Auckland and Christchurch were experiencing a drop in the numbers of people who thought it was a good time to buy, as supply constraints kept house price growth in double digits.

“Low levels of new listings and strong buyer competition are affecting housing confidence, with an increase in the number of respondents seeing now as a bad time to buy in Auckland or Christchurch. Outside of these areas, housing confidence remains positive but is falling as demand and prices start to increase across the country,” Tuffley said.

Comments from our readers

On 8 May 2013 at 2:56 pm Mike Reeves said:
That will not stop the Asians throwing their money at property. Stop overseas buyers having access to our houses for God's sake!!!!
On 8 May 2013 at 7:49 pm TS said:
Not true. Read Tony Alexander's comments and survey re this. Overseas Asian buyers are a very small statistic now but yes this is predicted to change in the future.
On 9 May 2013 at 5:49 am Common Sense said:
The 'Asians' aren't really the problem with the rising costs of housing, its supply and demand mixed with the high cost of building new houses. One solution for policy makers to consider would be to introduce a foreign buyers regulation effectively allowing anyone from overseas to build a house in NZ but not buy 'second hand' houses. Thereby they pay the council's gouge tax, absorb the high cost of building materials and labour and assist in creating more housing in NZ. Australia has used this approach with some success. Sounds like a win-win to me.
On 9 May 2013 at 3:34 pm Mike Reeves said:
Yes, I agree with the "foreign buyers regulation" you mention. A good idea!! :-) But will the politicians do it - I think not.

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