NZ Property Values Slow

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Property values rose at the slowest annual pace in 15 months in September, according to state-owned valuer Quotable Values.

Property values rose 6.4 per cent nationwide in September from a year earlier, slowing from an annual pace of 6.9 per cent in August, according to QV. Housing values are now some 16 per cent above the previous market peak in 2007.

Last week, Auckland’s largest realtor, Barfoot & Thompson, said house sales rose in September, snapping three consecutive months of decline in the country’s largest city, while the average price rose to a record level.

House sales slowed leading into the September 20 election as uncertainty spooked house hunters, particularly those at the lower end of the market, with Labour and National proposing reforms to try to rein in housing affordability.

The returning National government plans to allow prospective buyers to tap into more of their Kiwisaver funds and give power to councils to fast-track development.

Reserve Bank governor Graeme Wheeler in September kept interest rates on hold and signalled a slower pace in future hikes, after increasing the official cash rate 100 basis points to 3.5 per cent in four consecutive increases starting in March.

The hikes had been intended to take the steam out of an over-heating property market in Christchurch and Auckland.

Property values rose 1.1 per cent in the three months ended September 30, slowing from a 1.7 per cent pace in the three months ended August 31.

Auckland property values rose 1.8 per cent over the past three months, and 10.3 per cent on an annual basis. Christchurch city values rose 0.3 per cent in the three months, and were 5.1 per cent higher than in September last year.

Wellington values fell 0.9 per cent in the three month period and rose 0.3 per cent on an annual basis.


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