New Zealand house prices continue to rise, driven primarily
by high demand and short supply in Auckland and Canterbury,
while Dunedin values remain static.
Residential values nationwide increased 8.4% during the past
year, with a 2.6% rise over the past three months, according
to data released by Quotable Value (QV) yesterday.
The Auckland market has increased 13.6% year-on-year and
values were 21.3% above the previous peak, while Christchurch
was up 10.8% on last year.
In Dunedin, property values had been static for the past 12
months and, as a result, only 1.8% above last year. Although
there were a low number of listings [in Dunedin], there was
generally good demand across the market, especially in the
lower to middle price ranges, with many properties reportedly
receiving multiple offers, QV valuer Duncan Jack said.
Provincial centres were still mostly experiencing growth,
although generally no more than 2% to 3% over last year.
In the South Island, Kaikoura, Westland, Timaru and Mackenzie
had all seen some strong increases over the past three
months, with Westland the highest at 7.7%.
Southland, Gore and Invercargill were still struggling, with
Gore recording the largest decrease at 3.3%.
QV research director Jonno Ingerson said the loan to value
ratio (LVR) caps recently applied by the Reserve Bank were
intended to help slow down the rapid increase in values by
limiting loans to people with a low deposit.
That would take some time to fully impact on the market as
the main banks had a large number of pre-approved loan
applications in the pipeline. It was likely to cause a
short-term flurry in activity as people rushed to secure a
property before their pre-approval expired.
While the LVR caps might have an impact on first-home buyers
with limited deposits, it was likely to have little impact on
What remained to be seen was whether overall activity and
price levels in the market were affected, particularly in
areas with more affordable properties, Mr Ingerson said.