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: Wednesday, May 25th, 6:31PM

News

rss
Latest Headlines

Confidence in Auckland housing market drops

Expectations of house price gains in Auckland fell dramatically this quarter, according to an ASB survey.

Wednesday, January 27th 2016, 9:04AM

by Miriam Bell

ASB chief economist Nick Tuffley

Nationwide expectations of property price gains have dropped in the three months to January 2016, the latest ASB Housing Confidence survey shows.

Forty-four percent of respondents think house prices will go up over the next year, as compared to 52% last quarter.

However, when it came to Auckland, 30% of respondents expect house prices to go up over the year – which is down from 50% last quarter.

These results are likely to stem from the slowdown of Auckland’s market, which has occurred since the government and the Reserve Bank introduced a suite of new tax and LVR measures.

Further, 22% of Auckland respondents think it is a bad time to buy a house, as compared to 25% last quarter.

ASB chief economist Nick Tuffley said high house prices and the tight housing market will continue to weigh on sentiment, as may the additional tax and lending rules.

But while the fall in Auckland house price expectations was not surprising, the decline in price expectations around the rest of the country was surprising, he said.

“Recent trends have indicated that the Reserve Bank’s new lending measures have bought an acceleration in house price growth outside of Auckland.”

On top of that, interest rates have fallen further.

“Yet this survey doesn’t show any strengthening of price expectations beyond Auckland.”

However, it is possible the government’s tax measures, which target investor activity around New Zealand, could also be having an adverse effect on house price expectations outside of Auckland.

Tuffley said that, in Canterbury, the ongoing moderation in price gains expectations is consistent with the region’s market moving to a more balanced position.

Thirty-nine percent of respondents expect Canterbury house prices to go up over the next year.

Meanwhile, fewer people now think interest rates will fall over the coming year.

Twenty-four percent of respondents expect interest rates to get lower, as compared to 35% last quarter.

Tuffley said there was a noticeable increase in respondents expecting interest rates to stay where they are.

“The survey shows 30% of respondents are expecting interest rates to stay the same – as compared to 21% last quarter. This is perhaps because they don’t think they can drop much lower.”

However, ASB expects the RBNZ to cut the OCR by an additional 50bp over 2016, he said.

“So we may see more people expecting lower interest rates as we get further into 2016.”

« Profiles revisitedFree Investment Property Showcase Events: Auckland, Wellington and Christchurch »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

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
AIA 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
CFML Loans 6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 4.29 5.09 5.35
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - 4.19 - -
The Co-operative Bank - Owner Occ 5.45 4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 4.79 5.69 5.95
TSB Bank 5.59 5.14 ▼5.79 6.15
TSB Special 4.79 4.34 ▼4.99 5.35
Unity 5.65 4.80 5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 19 May 2022 10:42am

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