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

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.