About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, September 20th, 1:11PM
rss
Latest Headlines

Sellers drop house prices for buyers

New Zealand residential property prices fell last month as vendors cut prices to woo a smaller pool of buyers.

Monday, September 8th 2008, 12:00AM

by The Landlord

 

The average property price fell 4.5% in August, adding to a 2.2% drop in July, according to Quotable Value, the government valuation agency.

There are definitely more properties selling at reduced prices as vendors adjust their expectations,” said Blue Hancock, a spokesman for QV Valuations.

“Many buyers are realizing that price decreases are making this a good time to buy, and that they can bargain strongly,” he said. “As a result there will be further declines in value before the market levels out.”

Demand for residential properties has tumbled in the past few months, based on government figures, reflecting weaker consumer confidence in an economy that’s probably fallen into recession. Home building consents held near a 22-year low in June and July, according to Statistics New Zealand.

Still, some property investors are taking advantage of the market to add to their portfolios. Some 20% of property investors in the inaugural landlords.co.nz quarterly survey plan to buy another rental property this year. By the end of 2009, 52% of those polled plan to buy another property. The online survey of 600 investors was taken earlier this month.

"The market has been out of equilibrium with a lack of buyers, however there are early signs of a more positive mood,” QV’s Hancock said.

In Auckland, property values fell 5.8% in the three months to August, from the same period last year, with the average sale price falling to $503,026.

Hamilton posted the biggest decline among the major centres, with an 8.5% drop and an average price of $335,292. A lack of confidence in the market and high interest rates are curbing demand in the Waikato city, according to QV Valuations’ Richard Allen.

In Wellington, property values fell 3.8%, adding to 1.6% decline in July. Christchurch valuations fell 5.8% and Dunedin’s declined 7.8%.

Many economists predict the central bank will cut its official cash rate at every opportunity this year to stoke the economy.

Check out what is happening in your area here

« Will Ha have the last laugh?NZ property investors undeterred, seek new houses »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.15 ▼4.04 4.49
ANZ Special - 3.65 ▼3.54 3.99
ASB Bank 5.20 4.15 4.09 4.39
ASB Bank Special - 3.65 3.59 3.89
BNZ - Classic - 3.65 ▼3.54 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
Housing NZ Corp 5.19 ▼4.15 ▼4.09 ▼4.39
HSBC Premier 5.24 3.35 3.35 3.35
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.30 4.34 4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.55 3.59 3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.69 4.79 -
Resimac 5.30 4.86 4.14 4.19
Lender Flt 1yr 2yr 3yr
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.69 3.69 ▼3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.65 3.59 3.99
The Co-operative Bank - Standard 5.15 4.15 4.09 4.49
TSB Bank 6.09 4.65 4.59 4.85
TSB Special 5.29 3.85 3.79 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.34 - - -
Westpac Special - 3.65 ▼3.54 3.99
Median 5.35 4.15 4.09 4.19

Last updated: 20 September 2019 9:30am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com