Hous­ing slow­down spreads to the prov­inces


Peo­ple hold­ing back from list­ing their prop­er­ties may be pro­tect­ing New Zealand from a sig­nif­i­cant fall in house prices, QV says.

It has re­leased its lat­est data, which shows na­tion­wide res­i­den­tial prop­erty val­ues were up 4.3 per cent in Septem­ber on the same time the year be­fore.

Prices were up 1.1 per cent over the past three months.

Spokesman David Nagel said a drop in value growth had spread from the main cen­tres to al­most all ur­ban ar­eas, with the ex­cep­tion of Ro­torua, Palmer­ston North, Dunedin and In­ver­cargill.

‘‘The year-on-year growth is still show­ing dou­ble-digit gains in many of New Zealand’s pro­vin­cial towns; how­ever, the quar­terly change shows a grad­ual slow­ing of the prop­erty mar­ket in al­most all city lo­ca­tions,’’ he said.

While Napier had the big­gest year-on-year price gains, Hawke’s Bay valuers said the mar­ket seemed to have changed here, too, while the out­come of the elec­tion was un­clear.

Nagel said there had not been the nor­mal ‘‘spring surge’’ of peo­ple list­ing their prop­er­ties for sale around the coun­try, which had avoided a sharper fall in val­ues. If there was more sup­ply on the mar­ket, there would be less com­pe­ti­tion, which could weaken prices fur­ther.

QV se­nior con­sul­tant James Steele said sales vol­umes were at very low lev­els be­cause it was hard for pur­chasers to get fi­nance.

QV said the un­clear elec­tion re­sult was prob­a­bly still caus­ing mar­ket un­cer­tainty across the coun­try.

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