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Market returning to normal

Any doubt that New Zealand’s housing market is taking the pace down a notch is confirmed by May’s QV data which shows annual value growth dropping significantly.

Thursday, June 1st 2017, 9:00AM

by Miriam Bell

Rotorua is currently experiencing strong value growth

Annual value growth has now dropped to below 10% - both nationally and in Auckland, according to the latest QV House Price Index.

National property values rose by 0.4% over the past three months and, once adjusted for inflation, by 7.4% year-on-year, leaving the national average at $634,018.

That is the slowest rate of annual growth in two years.

In Auckland, value growth remained flat, with the average value coming in at $1,044,561 in May as compared to $1,045,362 in April.

The region’s values increased by just 0.1% over the past three months and, once adjusted for inflation, by 7% year-on-year.

This rate of growth is the slowest annual rate Auckland has seen since November 2014 – and the state of play in the city’s market reflects the more sedate times.

QV Auckland homevalue manager James Steele said the Auckland market was currently seeing a return to more “normal” market conditions.

“There are more properties listed for sale on the market - but there is also demand and properties are selling.

“But some of the heat has come out of the market and buyers are being pickier about what they buy.

“Properties with undesirable features or maintenance issues are sitting on the market for longer and many sellers may have to accept a lower price than they would have achieved mid-last year.”

He added that entry level homes in South Auckland suburbs like Mangere, Papakura and Manurewa are now sold mostly to first home buyers.

“Investors are no longer very active in this part of the market.”

However, QV’s data also indicates that other major centres besides Auckland appear to be seeing a degree of normalisation, while regional centres are currently booming.

QV national spokesperson Andrea Rush said that nationwide value growth continues to ease back.

This is due to lower demand in the housing market caused by the latest round of LVRs and tougher lending criteria from the banks as the market heads into the winter period, she said.

“Sales volumes are lower than they were this time last year, particularly in Auckland, and its possible market activity may now remain more subdued until after the election.”

Auckland, Hamilton and Christchurch are all relatively flat markets, while value growth in Wellington and Dunedin is also starting to ease back a little.

“Values in Tauranga are showing stronger quarterly growth than last month,” Rush said.

“But it appears much of the frenzy has come out of the housing market there and have returned to more normal levels of activity and demand.”

Meanwhile, many regional centres around the country are now seeing the strongest value growth.

For example, Rotorua values were up by 23.9% year-on-year, while Whangarei values increased by 19.4% year-on-year and Napier values rose by 19.3% year-on-year.

 

« Housing crisis needs building surgeUnits buck slowing trend »

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 ▼8.09 ▼7.59 ▼7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 ▼9.09 ▼8.59 ▼8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 28 March 2024 9:42am

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