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Homes become more affordable: survey

New Zealand home affordability has seen a quarterly improvement for the first time in two years, according to the March quarter AMP Home Affordability Report.

Wednesday, May 3rd 2006, 12:00AM

by The Landlord

A fall in house prices, along with a slight increase in wages, offset upward creeping interest rates to deliver a 1.3% quarterly improvement in New Zealand’s home affordability index.

“The principal driver behind the country’s improved home affordability for the quarter, which ended in February, was a drop in the median dwelling price to $295,000, which some might say is indicative of a plateauing market,” Massey University senior lecturer in real estate, Graham Crews says. New Zealand’s median dwelling price fell 1.7% during the quarter but was up 9.6% on a 12-monthly basis.

“Putting this into context though, if you look at what’s gone on to occur in March, the median dwelling price lifted again, edging just past the unprecedented high of $300,000 reached last November,” Crews says.

On a regional front, for the first time in 18 months six regions showed quarterly improvement in home affordability. Hawke’s Bay led the market at 4.2%, followed by Otago (3.9%), Wellington (2.4%), Southland (2%), Canterbury/Westland (1.9%) and Auckland (0.5%). All six regions recorded a quarterly decline in median dwelling price.

This quarter six of the twelve regions recorded a rise in the median dwelling prices and a quarterly decline in home affordability. Taranaki was a stand-out at 20%, followed by Central Otago Lakes (11.1%), Nelson/Marlborough (10.5%), Northland (6%), Waikato/Bay of Plenty/Gisborne (2.5%), and Manawatu/Wanganui (1.2%).

Southland remains the most affordable region followed in ranking by Manawatu/Wanganui in the number two position. Central Otago Lakes is the least affordable region followed in ranking by Auckland.

For the 15th consecutive quarter the New Zealand index reflected a 12 monthly decline in home affordability (11.1%). Total sales for the past year were 101,491, 4.2% down on the previous year’s (Mar 04/Feb 05) sales of 105,974.

All 12 regions recorded a 12-month decline in home affordability. Taranaki continued to dominate at 28.5%, followed by Northland (21.2%) Manawatu/Wanganui (20.5%), Waikato/Bay of Plenty/Gisborne (18.4%), Canterbury/Westland (15.7%), Wellington (13.6%), Otago (12.8%), Central Otago Lakes (10.5%), Auckland (10.1%), Nelson/Marlborough (9.9%), and Southland and Hawke’s Bay (3.9%).

All regions, except Southland, reported an increase in median dwelling prices over the past year. Taranaki topped the market with a busy year recording the steepest lift at 29%, followed by Northland at 25.5% and Manawatu/Wanganui at 22.2%. Southland’s Median Dwelling Price recorded no change.

« Property investors refocus on cash flowProperty price growth again eases »

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Lender Flt 1yr 2yr 3yr
AIA 4.55 ▼2.29 ▼2.59 ▼2.65
ANZ 4.44 2.89 3.25 3.39
ANZ Special - 2.29 2.69 2.79
ASB Bank 4.45 2.29 2.59 2.65
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - 2.29 2.59 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 2.89 3.19 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 2.50 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.50 3.40 -
HSBC Premier 4.49 2.25 2.35 2.65
HSBC Premier LVR > 80% - - - -
HSBC Special - 1.99 - -
Lender Flt 1yr 2yr 3yr
ICBC 3.69 2.25 2.35 2.65
Kainga Ora 4.43 2.79 3.04 3.13
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.20 3.50 3.50
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.35 2.65 2.65
Liberty 5.69 - - -
Nelson Building Society 4.95 3.20 3.24 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
SBS Bank 4.54 2.79 2.79 3.15
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.29 2.29 2.65
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 2.09 - -
The Co-operative Bank - Owner Occ 4.40 2.29 2.59 2.79
The Co-operative Bank - Standard 4.40 2.79 3.09 3.29
TSB Bank 5.34 3.09 3.29 3.45
TSB Special 4.54 2.29 2.49 2.65
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.09 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - 2.29 2.69 2.79
Median 4.55 2.79 2.99 2.80

Last updated: 26 February 2021 11:27am

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