CoreLogic report shows slowing house price inflation

House price growth has begun to slow following Government reforms to curb demand, according to new data from CoreLogic.

Wednesday, June 2nd 2021, 10:02AM

The Government reforms – including an extended bright-line test and the phased removal of interest deductibility – look to have dented activity according to the research firm's latest report.

The nationwide average price rose by 2.2% to more than $890,000 in May, slowing from a 3.1% increase in April, according to CoreLogic's House Price Index.

According to the data set, the yearly rise remained a strong 20.5%, up from 18.4% in the year to April, when level four lockdown impacted early activity.

Most of the main centres in NZ recorded a slowdown in price growth over the month. 

Auckland prices rose by just 1.4% in May to an average price of $1.26 million, compared with a 2.4% rise in April.

Tauranga was the best-performing urban centre, with price growth increasing month on month.

The Bay of Plenty coastal city recorded a 5.1% rise over the month, up from 2.7% growth in April. Average prices there rose to more than $968,000.

Other resilient spots in the market included Queenstown and Rotorua, which saw prices jump by 3.9% in May.

The average price in Queenstown has hit $1.34 million, while the average Rotorua price remains a relatively affordable $663,269.

Tags: CoreLogic house prices housing market

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