House Prices

Price rises plateau: QV

Loan-to-value restrictions and rising interest rates are causing a levelling off in the property market, Quotable Value says in its latest statistics release.

Monday, April 07th 2014

Nationwide property values have increased just 0.1% over the past three months.

The latest 8.8% annual rate of price growth compares with 9.3% in February,  9.6% in January and 10% in December.

Adjusted for inflation, values are up 7% over the past year and are now 2.8% off their 2007 peak.

Spokeswoman Andrea Rush said the LVR rules and the Reserve Bank’s clear messages about interest rate hikes were likely both factors in the recent plateau in price growth.

“For the first time in more than two years, we are seeing a decrease in some areas of the market.”

She said first-home buyer activity was well down from what it was before the limits were introduced in October.

The rate of growth in property values across the Auckland region has slowed considerably.

Values have increased 0.9% in the past three months and 0.3% since February. Auckland City's average current value is $826,721. 

South Auckland is down 0.5% but values there are up 13.8% year-on-year and are up 36% on their previous peak, a national high. The average current value is $732,046.

Manukau East is also down by 0.6% but up 13.7% year-on-year and 28.7% since 2007, to $766,956.

Valuer Bruce Wiggins said there was strong demand in Auckland for sub-divisable land.

Hamilton City’s increases have slowed to 0.4% over the past three months, to an average $361,522, and Wellington 0.7% to $539,133.

Christchurch prices have also cooled, down 1.5% over the past three months but up 8.3% year-on-year to an average $448,219.

Valuer Daryl Taggart said: “The LVR changes may have forced first home buyers to wait and save a larger deposit or look elsewhere for finance, but, first home buyers are still active in Christchurch buying houses and seeking valuations.”

The provinces are still mixed – Whangarei is up 1.2% in the past three months, Kaipara is up 0.7% and Otorohanga is down 13%.

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.