Mixed results across the regions as foreign ban dampens activity

KoreaPost 0 376 2019.07.03 11:52

a6d04171d9a5e7d2cd45fb97b5082bfa_1562111
 

Property values in NZ further moderated in June with the annual rate of change decreasing from 2.3% at the end of May to 2.0% at the end of June, according to the CoreLogicQV House Price Index. 

 

According to CoreLogicNZ head of research Nick Goodall, performance was mixed across the main 12 provincial centres* and contributed to the minor drop, with half seeing a decrease in the annual rate of change and the other half holding firm or increasing.

 

He said, “Once again the weakness in Auckland is also a strong factor. Values in Auckland continue to slip away, with the annual change dropping from -2.1% at the end of May to -2.7% at the end of June.”

The annual growth rate for Hamilton also saw a minor drop from the previous month (4.9% to 4.7%), however the other four main centres’ rates of growth increased.

 

a6d04171d9a5e7d2cd45fb97b5082bfa_1562111
 

Dunedin continued as the outright leader with a 12.2% increase over the past year while the rate of growth around the wider Wellington area remains strong at 7.9%. The high rate of capital gain across Wellington can be attributed to larger increases in both Hutt City (11.3% p.a.) and Upper Hutt (15.0% p.a.), while value growth in Wellington City (6.0% p.a.) and Porirua(6.8% p.a.) has lost some momentum.

 

Outside the main centres, localised factors are having a clear impact on housing market conditions.

Nick Goodall said, “Unaffordability, and the near-elimination of foreign buyers across the country has had a significant impact in the Queenstown Lakes District with the annual change in property values now in the negatives (albeit only marginally at -0.1%) for the first time since July 2011 in the wake of the Global Financial Crisis which impacted property values across the country”.

 

“This will likely have a muted impact on recent home buyers, due to deposit requirements guarding against a negative equity situation, however it’s the potential impact longer term which will have owners nervous.”

 

Similarly, values in Auckland City Central, where we also know foreign buyers were most active, are continuing to track backwards at a significant rate of -3.7% over the last three months, to take the annual rate of change down to -4.7%.

 

 

 Nick Goodall said “We seem to be at somewhat of a crossroads in the market as we see a split in performance between different localities. The nationwide market influences, such as low interest rates, low unemployment and strong population growth are reducing in their impact as we see it’s certainly not a case of one trend to rule them all. It is now that the strength of each centre’s local economy starts to dictate future housing prospects.”

 

“With any market cycle, it’s also important for owners and would-be-buyers alike to understand the different statistics available to them to evaluate the market accordingly. Median sales prices for example can be volatile, even year-to-year for some of the smaller centres. The latest headline regarded Gisborne values increasing by 54.4% over the past year. The reality is this captured a change in composition of what happened to sell between two periods over the year.”

 

 

According to the CoreLogicQV House Price Index, which measures the change in value of all property in a given area, the increase in values in Gisborne over the year to the end of June 2019 was 14.0%. This is still a strong increase relative to our other regional centres and reflects both the lower value of property in the district as well as a competitive market among both owner occupiers and investors. Most recently ‘movers’ have increased their share of property purchases here, and although the majority of these are locals upgrading or downsizing, there has been a greater presence from outside of the region so far in 2019, especially from Hawke’s Bay and Bay of Plenty.

 

The latest ASB Regional Economic Scoreboard showed Gisborne as the “big mover in Q1” and it is expected that “the good times are likely to roll on over the remainder of the year”. Forestry and Agriculture are two of the biggest industries here which will have boosted employment and supported housing demand.

 

Elsewhere, Nelson’s somewhat ‘slow but steady’ market persists, despite a drop in the annual rate of growth (8.3% to 7.1%). A higher average value ($624,307), relative to other regional centres, has meant the increase in property values through the most recent growth phase was not as strong as other similarly sized areas. Anecdotally the rental market is very tight here and with persistently low listings volumes there remains consistent upwards price pressure for those properties that are for sale.

 

In summarising the current market and outlook, Goodall added: “We continue to watch both the Government and Reserve Bank with interest as their influence on the market is clear for all to see and they have the levers to pull. The Reserve Bank continue to reinforce the importance of financial stability with ongoing consultation on increased capital requirements but also state they could ease the current loan-to-value ratio (LVR) restrictions if ‘risks decline’.

 

From a Government perspective, the recent change of Housing Minister brings further interest and focus to the imminent ‘KiwiBuildreset’ which will likely become more of a ‘Government Build reset’, incorporating both Housing NZ and HLC (formerly HobsonvilleLand Company) in new Government targets.”

 

“Outside their (Government and RBNZ) influence, our forecast is for the quieter market, and muted price growth around many parts of the country to continue, but we’re not expecting a material reduction in volumes or values across the board.”

 

a6d04171d9a5e7d2cd45fb97b5082bfa_1562111
 

“Interest rates remain low (with a strong prospect of the cash rate dropping again in August), migration is holding up well (if not increasing again) and unemployment remains low. These factors should ensure a solid footing underneath the market. But not enough to stimulate a rebound in capital gains due to tighter lending criteria restricting the pool of buyers.”

 

a6d04171d9a5e7d2cd45fb97b5082bfa_1562111
 

“After a significant growth phase for the property market across the country, questions now arise as to what’s next. Often it will fall back to the local economies to sustain growth, tied in with affordability. This is evident right now at both ends of the market, with Queenstown and Central Auckland negatively impacted by the foreign buyer ban and New Plymouth also with a weaker outlook, due to the Government’s decision to ban any new off-shore drilling permits in the oil and gas industry. The stronger markets of Wellington, backed by increased Government spending in the Capital and Dunedin, helped by the building of the new $1.4b hospital look likely to remain.” 

 

Source: CoreLogic Media NZ

  • 페이스북으로 보내기
  • 트위터로 보내기
  • 구글플러스로 보내기
  • 카카오스토리로 보내기
  • 네이버밴드로 보내기

Comments

 플러스 광고

Eftpos 나라
eftpos.cash register,cctv,scale,alarm,pos system. T. 0800 880 400
한나 유학이민
한 번의 만남으로 후회없는 선택을 하세요.이민 T. 09 600 6168
미드와이프 김유미 (Independent Midwife YOOMI KIM)
임신, 출산, 출산후 6주 신생아와 산모의 건강 관리를위해 함께 하는 미드와이프 김 유미 T. 021 0200 9575

Major changes to Auckland’s city centre aroun…

댓글 0 | 조회 159 | 2시간전
Construction in the city centre will ramp up from the start of 2020 as the next phase of the city ce… 더보기

MetService launch new metservice.com

댓글 0 | 조회 99 | 2019.11.12
Today, after a three-month open beta period, MetService - New Zealand’s national weather authority -… 더보기

Calculate and reduce your carbon footprint wi…

댓글 0 | 조회 238 | 2019.11.10
Walking with lighter footprints​​​I understand the science, realise the urgency, agree with the plac… 더보기

Auckland wins 'Best Cruise Destination' in Re…

댓글 0 | 조회 227 | 2019.11.08
Auckland has won the 'Best Australia / New Zealand Cruise Destination' category in the 2019Porthole … 더보기

Event accessibility for Tuia 250 ki Tāmaki Ma…

댓글 0 | 조회 149 | 2019.10.25
Be part of the Tuia 250 commemorations at Auckland Viaduct this Labour Weekend. You can check out ou… 더보기

Protect the Hauraki Gulf during Labour Weeken…

댓글 0 | 조회 212 | 2019.10.19
​Their home, your playground - take care Planning on heading out on the Hauraki Gulf this long week… 더보기

Auckland Council welcomes new waste managemen…

댓글 0 | 조회 448 | 2019.10.15
An official New Zealand ecolabel specification supporting waste management companies to reduce the a… 더보기

2019 local elections: Youth, women show stron…

댓글 0 | 조회 130 | 2019.10.14
New Zealand’s mayoral ranks received a boost from women and candidates under 40 years of age in the … 더보기

YWCA Day of the Girl Survey: Young New Zealan…

댓글 0 | 조회 138 | 2019.10.11
Just one in three young Kiwi women feel they have equal opportunities to their male peers and that t… 더보기

Government should spend surplus on housing, h…

댓글 0 | 조회 214 | 2019.10.08
Following the government announcement of a $7.5 billion surplus today, the Public Service Associatio… 더보기

North Shore youth innovation hub to open earl…

댓글 0 | 조회 458 | 2019.10.01
Construction is underway on a new youth innovation hub in Takapuna.The transformation of Takapuna’s … 더보기

170,000 New Zealanders strike for climate

댓글 0 | 조회 236 | 2019.09.27
170,000 people stood united for climate justice today across Aotearoa in New Zealand’s third strike … 더보기

Proud to support the Auckland City Mission

댓글 0 | 조회 269 | 2019.09.26
Food Appeal: 24 September - 8 OctoberHow to support the Auckland City Mission Food AppealThe Aucklan… 더보기

New Zealand's biggest city still weighed down…

댓글 0 | 조회 217 | 2019.09.26
Obesity rates have tripled in the space of just one generation and it’s been estimated that national… 더보기

OCR on hold; mortgage lending stable too

댓글 0 | 조회 245 | 2019.09.25
Official cash rate on hold at 1.0%, but watch for cut on November 13th … The first key piece of news… 더보기

Animal Management report highlights positive …

댓글 0 | 조회 113 | 2019.09.24
Doggone! Dog attacks are down and registrations up in Tāmaki Makaurau – resulting in another success… 더보기

Auckland Council ranked highest in the countr…

댓글 0 | 조회 494 | 2019.09.18
Auckland Ratepayers Alliancespokeswoman Jo Holmes says: "For the first time, Auckland Council has ta… 더보기

Applications open for $120 million Sport and …

댓글 0 | 조회 296 | 2019.09.16
Auckland Council will invest $120 million over the next ten years to support the development of regi… 더보기

Community group leases granted across Frankli…

댓글 0 | 조회 244 | 2019.09.15
Residents of 20 Rescare facilities across the city can look forward to more holidays at Maraetai aft… 더보기

See cow milking up close at Ambury Farm Day

댓글 0 | 조회 227 | 2019.09.14
Connecting city with countryThe milking of cows at Ambury Regional Park provides children with a "va… 더보기

Better Buying benefits top $146 million for A…

댓글 0 | 조회 555 | 2019.09.12
Cost avoidance as well as measures to avoid future costs were recently revealed to Auckland Council’… 더보기

Fast moving suburbs: Auckland features at the…

댓글 0 | 조회 337 | 2019.09.12
An article that featured as part of last week’s Property Week on Oneroof covered the latest CoreLogi… 더보기

Have Your Say on Auckland’s City Centre Maste…

댓글 0 | 조회 273 | 2019.09.09
20 year vision for the heart of the city is refreshedPublic consultation on the refresh ofAuckland’s… 더보기

Young Aucklanders ready for free child weeken…

댓글 0 | 조회 236 | 2019.09.08
Aucklanders aged 5 to 15 will travel for free on Auckland Transport's bus, train and ferry services … 더보기

Community Bike Fund open for applications

댓글 0 | 조회 181 | 2019.09.05
The Auckland Transport Community Bike Fund is nowopen for applications, with funding available for l… 더보기

Strong rental growth highlights buoyant prope…

댓글 0 | 조회 446 | 2019.09.05
For about 18 months now, average weekly rents across the country have been rising more quickly than … 더보기

The story behind the Moon Festival

댓글 0 | 조회 169 | 2019.09.04
How much do you know about one of Asia’s most popular festivals?The Moon Festival (as it is referred… 더보기

Free child fares on public transport at weeke…

댓글 0 | 조회 167 | 2019.09.02
From Saturday 7 September, children aged 5 to 15, using a registered AT HOP card, will be able to tr… 더보기

Measles outbreak - 963 cases nationally, 804 …

댓글 0 | 조회 285 | 2019.09.02
The total number of measles cases in Auckland is at 804 today, up from 778 cases on Saturday. Of thi… 더보기

Bulk Storage Terminal transformation to begin

댓글 0 | 조회 296 | 2019.08.26
The transformation of Wynyard Quarter is continuing, with the demolition of 38 tanks at the Bulk Sto… 더보기

ZEALANDIA is Named World's 100 Greatest Place…

댓글 0 | 조회 486 | 2019.08.23
ZEALANDIA has today been named one of the “greatest places” on earth, according to Time Magazine’s W… 더보기

World rat expert to visit Howick

댓글 0 | 조회 513 | 2019.08.21
New York rat expert Bobby Corrigan is to visit Howick to see how Aucklanders are tackling pest contr… 더보기

Pescara Point bridge work to begin this month

댓글 0 | 조회 149 | 2019.08.19
Path will link communities​Heavy lifting work will take place on the Southern Motorway this month as… 더보기

Finalists announced for Most Beautiful Towns …

댓글 0 | 조회 202 | 2019.08.14
Keep New Zealand Beautiful have announced the finalists for the Most Beautiful Towns and Most Beauti… 더보기

National 2020 candidate selection process beg…

댓글 0 | 조회 232 | 2019.08.12
The National Party is today kicking off our nationwide candidate selection process in preparation fo… 더보기

Safety improvements planned for roads in Alba…

댓글 0 | 조회 267 | 2019.08.11
A long-awaited roadwork project in Albany has been given the go-ahead.Property negotiations have bee… 더보기

Auckland students compete for SUSO glory

댓글 0 | 조회 257 | 2019.08.09
Future stars are shining brightly. More than 1000 secondary school students have come from far and w… 더보기

Solar lights to improve Tarnica Park

댓글 0 | 조회 177 | 2019.08.08
Solar lighting will be tried at Tarnica Park to combat anti-social behaviour.Residents say unruly te… 더보기

New Māori and Indian street names in Puketāpa…

댓글 0 | 조회 178 | 2019.08.07
Three new roads in Hillsborough have been newly created due to a subdivision development.Puketāpapa … 더보기

Franklin environment gets helping hand from t…

댓글 0 | 조회 154 | 2019.08.06
▲Targeted rates have enabled work on detecting illegal connections to water networks to be speeded u… 더보기

Off-road pathways needed to link North-Waikat…

댓글 0 | 조회 248 | 2019.08.06
A new report has called for a network of off-road tracks and trails connecting the North Waikato tow… 더보기

Helping Auckland businesses to meet food lice…

댓글 0 | 조회 339 | 2019.08.04
In 2014, new legislation relating to the Food Act was passed by the Ministry for Primary Industries … 더보기

Know where your dogs are this lambing season

댓글 0 | 조회 188 | 2019.08.02
Dog owners are being reminded to be extra vigilant during lambing and calving season, as the risk of… 더보기

Community events get support from Waitemata L…

댓글 0 | 조회 204 | 2019.07.30
The Franklin Road Christmas Lights, the Farmers Santa Parade and Auckland International Buskers Fest… 더보기

Council adopts changes to dog management

댓글 0 | 조회 240 | 2019.07.27
Auckland Council’s Governing Body today adopted changes to the council’s Policy on Dogs and related … 더보기

Future Auckland: It's time for climate action

댓글 0 | 조회 269 | 2019.07.24
Sustainability Champion John Mauro gives his thoughts on Auckland’s futureClimate change has been de… 더보기

Nominations open for 2019 Auckland elections

댓글 0 | 조회 273 | 2019.07.19
Aucklanders from all walks of life are being encouraged to stand in this year’s local election.The n… 더보기

Apply for funding for your environmental proj…

댓글 0 | 조회 292 | 2019.07.18
Itching to get your green thumbs grubby? Have a passion for Auckland’s environment?Applications for … 더보기

Parks, arts and community prioritised by Wait…

댓글 0 | 조회 194 | 2019.07.16
Parks, places, arts and community have been prioritised by Waitematā Local Board for 2019/20.The loc… 더보기

Applications open for Women4Climate mentorshi…

댓글 0 | 조회 534 | 2019.07.13
Applications for the C40 Cities Women4Climate Auckland Mentorship Programme 2019 are open from now u… 더보기