tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, December 9th, 11:15AM

News

rss
Latest Headlines

Housing confidence down, investment property ‘less attractive’

Confidence in the housing market continued to fall over the three months to October, with tax changes regarding investment property adding to the cautiousness towards housing as an investment option, according to the latest ASB Housing Confidence Survey.

Thursday, December 2nd 2010, 12:00AM

by The Landlord

Confidence in the housing market continued to fall over the three months to October, with tax changes regarding investment property adding to the cautiousness towards housing as an investment option, according to the latest ASB Housing Confidence Survey.

The survey also found there had been little sign of a rush of listings in the wake of Budget changes in regard to property investment, despite the fact the changes make "investment property a less attractive option."

"It appears potential sellers are holding off putting their house on the market in the hope housing market conditions will improve," said ASB chief economist Nick Tuffley.

Expectations for house price rises fell across all regions, expect Auckland.

The survey found that a net 19% of people expect house prices will increase in Auckland compared to a net 4% for the rest of the North Island. The figure is just 2% for the South Island.

Overall 33% expect to see higher prices against 38% last quarter, with 25% expecting lower prices, up from 19% last quarter. The number expecting no change remained stable at 37% against 38% in the previous quarter.

When it comes to buyer confidence the survey found a slight fall in optimism across the regions, with 41% saying now was a good time to buy against 39% in the last quarter, while 13% believe now is a bad time to buy against 9%.

Tuffley said fewer people expect to see interest rates rise but this is not fuelling housing confidence.

A net 65% expect to see rates increase against 74% in the previous quarter, while 5% expect to see lower interest rates.

"This subdued interest increase expectation would usually fuel housing confidence, but it is balanced out by the fall in price expectations."

Despite the dearth of new listings, the survey found housing inventory had increased, a sign of the low level of sales in a market that "remains tipped in favour of buyers."

Looking beyond early 2011 house prices are expected to track broadly in line with inflation around 2-3% per annum, and a number of constraining factors are highlighted.

"The announcement in the May Budget of the removal of the ability to claim depreciation will reduce rental investment demand. In addition, mortgage rates are expected to gradually rise over the year."

 

« Momentum building in house market, according to ANZFree Investment Property Showcase Events: Auckland, Wellington and Christchurch »

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
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 5.79 5.49 5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 5.79 5.49 5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance 7.90 - - -
Basecorp Finance ▼8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.99 5.89 -
First Credit Union Standard ▼7.69 6.69 6.39 -
Heartland Bank - Online 6.99 ▼5.49 ▼5.39 ▼5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 5.79 5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 ▼6.69 ▼6.49 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 ▼5.79 ▼5.59 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 ▼5.75 ▼5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - ▼5.89 ▼5.49 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 ▼4.89 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 ▼6.39 ▼6.39
TSB Special 7.39 5.69 ▼5.59 ▼5.59
Unity 7.64 ▼5.79 ▼5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼7.70 ▼5.95 ▼5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.84 5.75 5.69

Last updated: 9 December 2024 10:05am

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