NZ house prices gain 11% in October   14 Nov 2016

Article - BusinessDesk

Monday 14 November 2016 10:28 AM

NZ house prices gain 11% in October, driven by sales of higher value homes

By Tina Morrison

Nov. 14 (BusinessDesk) - New Zealand's median house price increased 11 percent in October, as tougher lending rules failed to dampen sales of higher value properties, according to the Real Estate Institute of New Zealand.

The national median house price rose to $510,000 in October from $460,000 a year earlier, the institute said. The price weakened from the September median level of $515,000. There were 6,727 national sales in October, down 14 percent from a year earlier and 9 percent lower than September.

Concern about New Zealand's bubbling housing market has prompted policymakers at the Reserve Bank to introduce tighter restrictions for highly-leveraged lending. Today's report shows stricter conditions around loan-to-value ratio lending is having a bigger impact on lower-priced properties, with sales of homes under $400,000 accounting for just 35 percent of sales in October, from 41 percent a year ago, while sales of properties over $1 million accounting for 15 percent of the total, up from 10 percent.

"Our data suggests that the impact of the revised LVR rules is having more of an effect on lower-priced sales compared to higher-priced sales, with a surge in the percentage of sales over $1 million and a noticeable decline in the number of sales below $400,000 compared to 12 months ago," said institute spokesman Bryan Thomson. "Some of this change may be reflective of the overall uplift in prices over the past year as the market for higher-priced properties is continuing as normal, but the market for lower-priced properties is becoming more difficult for both buyers and sellers."

Thomson said the normal 'spring bounce' in listing numbers has so far been "quite weak" this year.

"One possible reason for this is that the revised rules could be making it harder for people to know whether to sell, as they wonder if there are buyers about, so they hold their properties back from the market," he said. "This could have the result that we’re seeing, which is that supply falls but the demand is still there, so prices keep rising.”

Prices hit a new record in Auckland, up 16 percent to $868,000 from the year earlier. Other regions to hit new records were Northland, up 11 percent to $399,000; Waikato/Bay of Plenty, up 21 percent to $460,750; and Southland up 13 percent to $225,000. Prices gained the most in Central Otago Lakes, up 42 percent to $659,500.

The number of properties available for sale nationwide shrank by 24 percent compared with October last year. Wellington has the fewest properties for sale with an estimated six weeks of supply.

(BusinessDesk)

ends

Add a comment

Bookmark and Share

News

Biosecurity New Zealand launched

30 Apr 2018 Environment By Hon Damien O'Connor
  30 April 2018 Minister for Biosecurity Damien O’Connor launched Biosecurity New Zealand at the Zealandia... more

Opinion: Auckland Regional fuel tax vote a victory for progress

30 Apr 2018 News By Hon Phil Tywford
30 April 2018 Auckland Council is to be congratulated for this afternoon voting 15-2 in favour of the regional fuel tax, Transport... more

Business

Minister hails new Secure Exports Scheme partner

30 Apr 2018 Business News By Hon Meka Whaitiri
30 April 2018 Customs Minister Meka Whaitiri today welcomed the signing of a partnership between New Zealand Customs and dairy... more

RBNZ Governor supports macro-prudential policy

16 Mar 2018 Business News
Macro-prudential policy has been particularly useful in the current environment of globally low interest rates, where monetary policy... more

Living

Kiwi indie-pop trio heads to London for the very first time - and the show is already sold out

30 May 2018 Arts By Charlotte Everett
Indie-pop trio nomad have left New Zealand behind to tour internationally for the first time. NZNewsUK London Editor Charlotte Everett... more

Thousands turn out to ANZAC services in London

27 Apr 2018 ANZAC By Charlotte Everett
Image by Peter Livingstone; article by Charlotte Everett   “I’m of the generation who grew up with elders from the... more

Property

No new solutions in housing report

12 Feb 2018 Property By Michael Woodhouse
MONDAY, FEBRUARY 12, 2018   The Government's housing stocktake report released today adds no new knowledge or... more

Stocktake finds housing crisis deeper, more entrenched

12 Feb 2018 Property
12 FEBRUARY 2018 An independent stocktake of New Zealand’s housing sector has found the housing crisis the country faces is deeper... more

Migration

Community organisations chosen to sponsor refugees in New ZealandI

26 Jan 2018 Migration By Hon Iain Lees-Galloway
26 JANUARY 2018 Immigration Minister Iain Lees-Galloway has today announced the four community-based organisations who will be the... more

Building occupations added to skill shortage list

14 Dec 2017 Migration By Iain Lees-Galloway
15 DECEMBER 2017 It will be easier for the building industry to find the workers it needs to help address New Zealand’s housing... more

Travel

International visitors spend $10.6bn in year to December

22 Feb 2018 Travel & Tourism
International visitor spending reached a record high of $10.6 billion in the year to December 2017, Tourism Minister Kelvin Davis... more

NZ Election 2017: Tourism fund for infrastructure and conservation

28 Aug 2017 Travel & Tourism
Tourism fund for infrastructure and conservation Posted by Kris Faafoi on August 28, 2017 Labour will estaba Tourism and... more

Sport

French win over England timely for All Blacks

13 Mar 2018 Rugby By Lynn McConnell
  12 March 2018 France's upset victory over England in the Six Nations at the weekend was the perfect result for the All... more

Winter Olympics: NZ Triples Medal Count in Single Day

22 Feb 2018 Sport
New Zealand has tripled its Olympic Winter Games medal count in a single stunning afternoon at PyeongChang 2018. Zoi... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

New Auckland DHB chairs announced

30 Apr 2018 Appointments
30 April 2018 Health Minister Dr David Clark has announced new chairs to lead Auckland’s three District Health Boards. The... more

Law Commissioner appointed

29 May 2017 Appointments
29 May 2017 Former Secretary for Justice Belinda Clark has been appointed as Law Commissioner, Justice Minister Amy Adams announced... more

Recruitment

Auckland employment hubs benefit over 500 young job seekers

8 Mar 2018 Recruitment By Hon Willie Jackson
8 MARCH 2018 Minister of Employment Willie Jackson today visited the Auckland CBD Jobs and Skills Hub and the Southern Initiative in... more

Fastest growing jobs - NZ recruitment

21 Dec 2017 Recruitment
New Zealand’s increasing need for social services has seen jobs in the Community Services & Development industry among the... more