QV - 1 September 2017 - Value growth over the past three months has dropped in both the Auckland and Wellington Regions, but values rose in most other parts of the North Island including Hamilton and Tauranga.

Particularly strong were the Hawkes Bay, South Wairarapa and Masterton markets which continue to benefit from those moving out of Auckland and Wellington looking for more affordable housing and a better lifestyle.

Values are flat or decreasing in most parts of Christchurch, while Dunedin value growth has slowed to 0.5% over the past three months.

A lack of listings over winter, LVR restrictions and stricter lending criteria by retail banks have led to a 30% drop in market activity and sales volumes compared to the same time last year.

General elections also traditionally compound any winter slow-down in the housing market due to uncertainty caused by potential policy changes, so it’s likely this is also a factor in the subdued sales activity.

In Auckland new sub-divisions previously popular with speculators including those from China have also recently seen lower demand and discounted sales prices.

It’s possible the crack-down by the Chinese Government on the amount of capital allowed to leave the country may be a factor as it’s now much harder for new migrants or foreign buyers from China to get their cash out to purchase property.

It’s likely the annual spring upturn in the market may be slower to arrive given the pending election, but with the underlying drivers of a lack of supply and high net migration particularly in Auckland still remaining, it’s possible that values may begin to rise again more steadily in the new year.

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