NZ property values slow pace of growth in March, Auckland listings still limited

Tuesday 9th April 2013

New Zealand property values slowed their pace of growth last month, though the level of listings in Auckland is still limited, according to state valuer Quotable Value.

National property values increased 1.3 percent in the three months ended March 31 to $429,061, slowing from the quarterly pace of 3.2 percent in the rolling period ending Feb. 28. Values are 3.3 percent above the previous market peak in late 2007 and 6.5 percent higher than a year ago.

"There are signs that the rate of increase has slowed in the last month or two in Auckland, Hamilton, Christchurch and Dunedin," research director Jonno Ingerson said. "It is still too early to tell if this is the start of a more widespread slowing of values."

The release comes after Reserve Bank deputy governor Grant Spencer gave the property market another serve yesterday, telling a business audience the central bank is ready to act "if the house price and credit expansion begin to fuel excessive consumption spending and inflationary pressures."

QV operations manager Kerry Stewart said listings in Auckland, which have been constrained by a lack of housing supply, deteriorated in the month as buyers begin to take the view "house prices are unreasonable" and are waiting to see if they come down.

Auckland values were 11 percent up from a year earlier, while Christchurch values rose an annual 7.8 percent. Wellington house values were 2.1 percent higher than a year earlier, and Dunedin property values rose an annual 4.4 percent.

BusinessDesk.co.nz

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