A cooling Auckland housing market helped slow the pace of property value growth across New Zealand as regulatory curbs imposed last year continue to dent investor demand in the country’s biggest city.
The average value of a New Zealand home rose almost 13 per cent to $556,206 in January from a year earlier, slowing from a 14 per cent annual increase in December, according to state-owned valuer Quotable Value.
Values were up 0.7 per cent in the three months through January, slowing from a 2.9 per cent pace in the three months ended Dec. 31.
Auckland property values rose at an annual pace of almost 20 per cent, down from a 23 per cent increase in December.
QV said property values decreased in January, and values were up 1.2 per cent in the rolling three-month period to $928,921 in January.
“The value decreases in parts of Auckland could be in part due to the seasonal impact of the holiday period and the housing market may pick up in the usually busiest months of the year, February and March,” QV national spokeswoman Andrea Rush said in a statement.
“However, it’s more likely to be a continuation of the softening in the market we saw following the introduction of new rules by the government and the Reserve Bank to curb investor activity in Auckland and the restrictions on the flow of capital out of China that occurred late last year.”
James Wilson, QV valuer, said investor demand in Auckland tapered off during the final months of 2015, though appetite for newly-built housing and off-the-plan purchases was “extremely strong.”
Values in Hamilton rose 20 per cent in the year through January, the same annual increase from a month prior, while Tauranga values were up 22 per cent year on year, accelerating from an 18 per cent annual gain.
Wellington region values rose 5.9 per cent in the year, accelerating from a 5.1 per cent annual pace in December, while Christchurch values were up an annual 2.7 per cent, and Dunedin values increased 6.1 per cent year on year.