Nick Goodall

PHOTO: CoreLogic NZ Head of Research Nick Goodall

ENEWS

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Nationally, property values rose 2.1% over January, a slight increase on December’s rate of growth (1.9%).

Following this period of volatility (also affected by the seasonal summer slowdown), there is mounting evidence residential property values could slow in the coming months with some areas more vulnerable than others.

CoreLogic NZ Head of Research Nick Goodall said: “The shift to red in Aotearoa’s COVID-management plan brings another layer of uncertainty to the market, but with the increased difficulty to secure finance being the lead topic and probably greatest influence over the future of the market right now, the impact of social restrictions is likely to be minimal.”

Following overwhelming feedback that recent changes to the Credit Contract and Consumer Finance Act (CCCFA) had gone too far and were unnecessarily impacting the ability of credit-worthy borrowers to secure mortgages, the Government has asked the Council of Financial Regulators to review the regulations and investigate whether lenders are implementing the new rules as intended.

  • The mixed results were evident across the main centres:
    • The rate of growth in Auckland strengthened on all measures (three, six and 12 months)
    • The phenomenal recent growth witnessed in Christchurch appears to have run its course, with the annual growth rate dropping from 38.0% at the end of December 2021 to 35.0% at the end of January 2022.
    • The average property value in Hamilton now exceeds $900,000, hitting $908k at the end of January
    • The annual rate of growth in Tauranga increased to 31.3%, despite gradually slowing since October 2021.
  • All but one of the provincial centres tracked saw a reduction in the annual rate of growth. In Rotorua the rate increased from 18.2% to 18.9%, which remains the lowest of these centres.
Average asking price

HOUSING CRISIS: Average asking price for New Zealand houses HITS $1m

 

CoreLogic House Price Index – National and Main Centres

  Change in property values Average Value
  Month Quarter Annual
New Zealand 2.1% 6.0% 27.5% $1,028,097
Auckland 3.3% 6.7% 26.6% $1,474,257
Hamilton 2.8% 6.5% 30.9% $908,475
Tauranga 2.4% 6.9% 31.3% $1,166,975
Wellington 0.7% 2.7% 29.0% $1,133,688
Christchurch 0.8% 8.2% 35.0% $750,979
Dunedin 0.2% 4.7% 20.6% $714,945

 

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