House Prices

'Cycle may only be half-way through'

Concerns about rising house prices are exaggerated, says Property IQ spokesman Jonno Ingerson.

Friday, August 16th 2013

He spoke at the Bankers Association yesterday, where he said price growth of 13% year-on-year in Auckland was muchless than had been seen in previous property booms.

"I don't believe we're looking at a stressed market where a bubble has grown. There are still strong fundamentals that will continue to drive it up."

During the 1970s, growth rates had reached 40% year-on-year, he said. In the 1990s, it was 30%.

He said: "Maybe we're half-way there, maybe not. The economy is different but let's not get carried away and say values are overheated now because in a year's time you'll be screaming."

People should stop talking about a "New Zealand property market", he said, because most centres had not seen much house price growth at all.

Property IQ data shows that cities such as Hamilton and Tauranga are still seeing growth of less than 4% per year.

Even within Auckland, there was a lot of variation, Ingerson said. "It's premature to say the Auckland market needs to bre stopped dead in its tracks. What is happening is not exceptional."

Research shows that buyers had started to baulk at the prices in inner-city suburbs of Auckland over recent months and moved further out, but were starting to filter back in again.

QV's latest data shows that nationwide residential prices increased 8.1% in the year to July, and 3.1% over the past three months. Prices are now 7.5% up on what they were in late 2007, the last market peak. But Ingerson said that was almost entirely driven by the influence of the two biggest cities.

Comments

No comments yet

Most Read

SBS FirstHome Combo 4.29
Unity First Home Buyer special 4.29
Co-operative Bank - First Home Special 4.85
China Construction Bank 4.85
ICBC 4.85
TSB Special 4.89
Kiwibank Special 4.89
ASB Bank 4.89
Westpac Special 4.89
BNZ - Std 4.89
AIA - Go Home Loans 4.89
Nelson Building Society 4.93
ICBC 4.95
SBS Bank Special 4.95
China Construction Bank 4.95
Wairarapa Building Society 4.95
TSB Special 4.95
ANZ Special 4.95
ASB Bank 4.95
Kainga Ora 4.95
Westpac Special 4.95
AIA - Go Home Loans 4.95
SBS Bank Special 5.39
Westpac Special 5.39
ICBC 5.39
Co-operative Bank - Owner Occ 5.59
BNZ - Std 5.59
BNZ - Classic 5.59
AIA - Go Home Loans 5.59
ASB Bank 5.59
Kainga Ora 5.69
Kiwibank Special 5.79
ANZ 5.79
SBS Construction lending for FHB 3.94
AIA - Back My Build 4.44
CFML 321 Loans 4.99
Co-operative Bank - Owner Occ 5.95
Co-operative Bank - Standard 5.95
Heartland Bank - Online 5.99
Pepper Money Prime 6.29
Kiwibank - Offset 6.35
Kiwibank 6.35
TSB Special 6.39
Kainga Ora 6.44

More Stories

Four decades of 6-7% yearly house price growth ending

Friday, March 21st 2025

Four decades of 6-7% yearly house price growth ending

New Zealander’s reliance on property capital gains in the mid-single digits is at an end.

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

Friday, January 31st 2025

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

It’s been years in the making and former real estate agent Mike Harvey is now coming to market with his platform matching buyers and sellers, an offering he says will be a gamechanger for the industry.

Leaving last year's stumbling housing market behind

Friday, January 17th 2025

Leaving last year's stumbling housing market behind

As interest rates ease and job losses climb, New Zealand’s housing market faces a mixed year of modest growth, with conflicting forces shaping the outlook for homebuyers and investors.

Don’t bet on house prices rising faster than incomes

Wednesday, January 15th 2025

Don’t bet on house prices rising faster than incomes

Former Reserve Bank Governor and National Party leader Don Brash says there are grounds for believing that house prices may finally have ended the three-decade period when they rose significantly faster than incomes.