New policy impacts

showing ‘‘more conservative’’ monthly growth, even though that meant increases of more than 2 per cent in the space of one month.

‘‘The Hawke’s Bay region, Manawatu¯ -Whanganui and also the greater Wellington region are all showing very strong monthon-month value growth, with Hawke’s Bay leading the pack at 4.9 per cent monthly growth,’’ he said.

‘‘The two southern regions of Otago and Southland are showing much more conservative monthly growth of 2.1 per cent and 2.5 per cent respectively.’’

Nagel said QV could only guess at how the Government’s tax changes, which included progressively withdrawing taxbreaks for landlords, would impact house prices.

‘‘There is certainly an expectation that we will see at least a slowdown in the rate of value growth, with potentially fewer investors and maybe a few more first-home buyers entering the market over the coming months,’’ he said.

The Government has sent a clear message that it wants landlords to no longer be the price-drivers in the housing market.

In March, Finance Minister Grant Robertson said the changes were about tilting the balance of the property market away from investors and that removing interest deduction loopholes for investors would dampen speculative demand.

‘‘The New Zealand housing market has become the least affordable in the OECD,’’ Robertson said.

‘‘Taking action is in everyone’s interests, as continuing to allow unsustainable house price growth could lead to a negative hit to the whole economy.’’