Provisional data from New Zealand’s largest real estate group Harcourts for the month of February shows there is continued pressure on the housing market in Auckland and Northland. The group said its average sales price had reached $644,613 – up 13% on the same time last year.
NewsWednesday, Mar 05, 2014
The Bank of New Zealand’s Nine Rewards Consumer Trends Survey indicates that interest in buying residential rental property has almost doubled since the LVRs were introduced
More people are interested in buying investment properties since the loan-to-value rules kicked in, the latest BNZ Consumer Confidence survey shows. It found a net 45% of the respondents are confident that the economy will improve over the next year.
Sellers were asking more for their properties than ever before in February, according to real estate listing website Realestate.co.nz. The site reported a national, seasonally-adjusted mean asking price of $483,099.
Low rents are discouraging people from buying their own homes, according to the New Zealand Property Investors Federation (NZPIF). NZPIF executive officer Andrew King said the cost of owning an average home was about $138 a week more than the cost of renting a similar property.
A drop in building consents in January wasn’t enough to reverse a trend of increasing construction activity, Statistics NZ said today. “The trend for new dwellings has doubled since the historic low point in March 2011, but is still 28% below the peak in January 2004,” industry and labour statistics manager Blair Cardno said.
Immigration has hit its highest pace in more than 10 years, and that is expected to put further pressure on house prices. There was a net gain of 3090 people in January, taking the annual total to more than 25,000 – the highest rate since 2004. ANZ’s economists said the influx of people was pushing up demand for housing and supply was still tight.
Trade Me has increased its charges for rental property listings, and landlords are not happy about it. It still costs $99 to list a rental property with an asking rent of less than $400 per week. But the fee to list a property that will rent for between $400 and $799 a week has increased to $129, and a property with an asking rent of $800 or more now costs $149 to advertise.
Napier and Wellington have experienced the biggest drops in first-home buyer numbers since the loan-to-value restrictions kicked in, Property IQ data shows. Both have reported a drop of 5.4% in first-home buyers since the rules took hold.
On paper it sounds like a great idea. A checklist for rental properties which, if mandatory, would ensure that the 31 per cent of the population who rent are in liveable homes. Increasingly, though, there are murmurs from landlords and real estate agents about whether the rental "warrant of fitness" idea being proposed at council level will improve the tenant's lot.
Almost all areas of Auckland and sizes of properties reported rent increases in January, according to Crockers’ latest report. The biggest rental increase for three-bedroom properties was seen in the Birkenhead/Northcote Point area. Their average weekly rent increased 11% compared to the year before.
New Zealand’s housing market is firmly in slowdown mode, Westpac’s chief economist says. Dominick Stephens said data from QV and REINZ confirmed the beginning of a trend. He said the fall in sales was most noticeable in the cheaper end of the market and had hit all regions except Queenstown.
Rising housing construction costs will underpin the prices of existing homes, BNZ’s chief economist says. Average residential construction costs rose 1.1% in the December quarter to sit 4.5% higher than a year earlier.
The census document NZ in Profile 2014 and the findings of the BNZ/REINZ Residential Market Survey hint at a disturbing trend regarding home ownership in this country. Overall the residential market is improving compared with the findings of the previous BNZ/REINZ survey.
Housing Minister Dr Nick Smith today announced the start of a trial Warrant of Fitness scheme on Housing New Zealand homes.
Housing New Zealand properties are paid for by taxpayers and it is these taxpayers who will end up paying for any cost increases in providing HNZ tenants with accommodation.
A Warrant of Fitness scheme for Housing New Zealand homes will target 500 houses between now and July, Housing Minister Nick Smith announced today. He said the system needed to be practical so it could be applied to thousands of houses across New Zealand. “We need to be cautious of removing houses from the rental market when there is a shortage. We also need to ensure that the benefits of the Warrant of Fitness standard exceed the costs, because housing affordability is a significant issue.”
A property developer was today sentenced to six years in prison for a $47 million mortgage fraud. Malcolm Duncan Mayer was found guilty in December of 16 charges of dishonestly using a document and 10 charges of using forged documents.
Reserve Bank loan-to-value (LVR) rules have had a big impact on first-home buyers, but not made much difference to investors, the latest BNZ/REINZ survey of real-estate agents shows.
According to the report by Sapere Research Group released on Monday, the NZ Power proposal of the Labour and Green Parties does little to address the issue of fuel poverty.
New Zealand property sales fell 4.3 percent in January from a year earlier while the median price slipped from the record high set in December, which may reflect high loan-to-value lending restrictions and seasonal factors, the Real Estate Institute says,.
More first-home buyers are turning up to open homes with a representative of “the bank of mum and dad”, says Real Estate Institute chief executive Helen O’Sullivan.
New legislation may make criminals more likely to launder money through property transactions, real estate agents have been warned. In its latest newsletter, the Real Estate Agents Authority said that property had previously been considered a complicated way to launder money.
Twenty-two new rental properties were opened in Mangere today, as part of the Government’s programme of expanding the community housing sector. It follows legislation passed last year that allowed the Government to partner with community housing providers to extend the variety of social housing.
First-home buyers may be edging back into the market but are still bearing the brunt of the Reserve Bank’s loan-to-value restrictions, a new survey shows. BNZ chief economist Tony Alexander said the results of the first BNZ/REINZ survey of real estate agents for the year would be released next week.
Martin Dunn says he has been advised that returns from the sale of houses bought by his new investment company will not be taxable. That's despite the fact that the houses have been bought with the expressed intention of eventual sale.
It's certainly a sign of the times when something called the Dunn Housing Fund is being flogged to the public to "invest" in Auckland houses, he says.
Harcourts agents have noticed increased interest in the market from property investors, the company’s latest MarketWatch report says. The real estate agency reported an average sale price of $665,726 for residential property in the Auckland and Northland region in January.
New Zealand's housing market has definitely passed its peak, Westpac's economists say. The bank has issued its latest Quarterly Economic Overview. In it, it says there is no doubt that the market has started to slow.
Growth in property values slowed considerably in January, QV says, pointing the finger and loan-to-value restrictions and rising interest rates. It has released its latest statistics, which show nationwide values have increased 9.6% over the past year and 2.2% over the past three months.
Auckland’s mayor claims the city is entering a growth phase for home building. He was speaking at an event to mark the start of construction of Brickworks, the city’s latest apartment development, at Hobsonville Point.
Vendors are losing out as agents battle Trade Me over fees, one commentator says. Groups of agents in some parts of the country have boycotted Trade Me after the company announced price rises. It has stopped charging a fixed fee to list all their properties to a fee of $159, plus GST, per listing.
Jackie Thomas-Teague President of the Wellington Property Investors' Association is interviewed regarding an assessment of one of her rental properties.
Barfoot and Thompson has reported renewed interest in the cheaper end of the market. The Auckland real estate agency has released its statistics for January. During the month, 334 homes were sold for less than $500,000 or 39.1% of all the homes sold.
Property owners expect interest rates to rise by at least 1% by the end of this year but most are not expecting that to have any effect on their property portfolios.
Realestate.co.nz reported a lift in new listings last month, helping inventory levels to recover to a level not seen since April. It followed December’s seven-year low of just 8010 new properties on the site. Thirteen of the 19 regions reported a year-on-year increase in listings.
Record traffic numbers to Realestate.co.nz’s various sites indicate a current increase in buyer interest and demand for homes. Over 1.65 million visitors browsed for property in January on their sites
Make sure you don’t end up having a horse showering in your rental.
Reserve Bank Governor Graeme Wheeler has confirmed he expects to raise the benchmark interest rate to about 4.5 percent in the next two years to curb inflation.
There’s a mixed outlook for the property market, if ANZ’s latest Property Focus is anything to go by. The bank’s economists have issued their monthly Property Focus, reporting pressure from both directions on house prices.
A new system designed to cut the time it takes to resolve tenancy disputes will only be available to big property management firms and Housing New Zealand at first. Housing Minister Nick Smith has revealed details of the new “Fasttrack” process for the Tenancy Tribunal.
Statement issued by Reserve Bank Governor Graeme Wheeler
New Zealand landlords are becoming more likely to leave their property management in the hands of the professionals, one industry participant says. David Faulkner, of Property Brokers, said a comparison of listing websites TradeMe and Realestate.co.nz showed that up to half of all rental properties were now being looked after by a manager, rather than a DIY owner.
Economists aren’t expecting an increase in the official cash rate this week but it’s not can impossibility, a new survey has shown. The latest CPI data, which showed much stronger inflation than expected, had prompted some to question whether the Reserve Bank might move sooner rather than later on the rate.
Many landlords are choosing to sell their properties because of bad experiences with tenants, says the president of the New Zealand Property Investors Federation.
Loan-to-value restrictions have the potential to affect the lifestyle property market but there is no sign of them doing so yet, the Real Estate Institute’s rural spokesman says.
There is no way of knowing how long loan-to-value restrictions might affect the housing market throughout this year, BNZ chief economist Tony Alexander says. He said house prices would continue to rise as the imbalance between demand and supply at current prices showed no sign of letting up.
There has been a clear move towards owner-occupied apartments in Auckland, says Martin Dunn, of City Sales. The apartment-specialist real estate agency has been operating for 16 years. Dunn said its apartment sales had traditionally been split at 30% to owner-occupiers and 70% to investors. But in October, November, December, that had changed to 37%, 48% and 44% owner-occupiers, respectively.
Banks are willing to turn a blind eye to borrowers who use personal loans from other lenders to pull together their deposits, says Harcourts chief executive Hayden Duncan.
Demographia's latest survey of housing affordability paints a depressing picture for New Zealand. But is it as bad as Deographia make it out to be?
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