Property

Treat biggest cities as separate markets: Report

Auckland and Christchurch need to be seen as their own, separate property markets and national data should be treated with caution, the Department of Building and Housing’s latest quarterly update says.

Wednesday, June 11th 2014

The New Zealand Housing and Construction Quarterly provides data and analysis on the housing market, construction and social housing. The June report was released this week.

It said much of the discussion about the “overheated” New Zealand property market was focused on the two largest cities.

“While it makes sense to focus on the areas of the country with the most significant housing issues, there is a risk that focusing too much on a couple of markets can create a misleading picture of what is happening around the country.”

National price data was heavily influenced by Auckland, the report said, and that could lead to people drawing conclusions about the country as a whole, based on a misleading picture.

“In April 2014, the top four Territorial Authorities by annual price growth were Auckland (14%), Waimakariri (8%), Christchurch (8%) and Selwyn (8%)… while the four Auckland and greater Christchurch TAs aren’t always the top four, they have consistently featured there over the last 12 months. This suggests Auckland and Great Christchurch have their own price dynamic that is completely different from that of the rest of the country. Rather than just being the fastest-growing part of a national market, they really need to be seen more as a market on their own, with their own dynamics. So long as this situation persists, national aggregate data will have to be treated with caution.”

There were only six other regions that had experienced annual growth of more than 5%. About 15 were still showing price declines.

The report showed less difference when it came to rents – between December 2013 and March 2014, Christchurch rents increased 3%, Wellington’s were up just over 2% and Auckland’s were steady.

It said Christchurch rents would reach Auckland levels by the end of the year on current trends.

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.