First-home buyers get active in regions
Regional New Zealand had the fastest house price growth over the past 12 months, new data from Quotable Value (QV) shows.
Its statistics for February show that national property values lifted 6.5 per cent over the year, to an average $672,645.
But that figure masks a wide range of results.
Prices fell 0.8 per cent over the year in Christchurch, lifted just 1 per cent in Auckland and shot ahead 16.5 per cent in Napier.
Nelson and Invercargill were also strong performers, with growth rates above 10 per cent. Whangarei and Dunedin followed close behind.
‘‘Values continue to rise faster in Wellington, Dunedin and many regional centres than in Auckland,’’ QV national spokeswoman Andrea Rush said.
‘‘The Hamilton and Tauranga markets have picked up in February after a sluggish start to the year while the Hawke’s Bay continues to see some of the strongest value growth in the North Island.’’
She said low interest rates and changes to the loan-to-value ratio (LVR) restrictions meant more first-home buyers were active in the parts of the country where they could afford to buy.
Banks are now able to lend more of their new loans to owneroccupiers with a deposit of less than 20 per cent.
Investors’ deposit requirement reduced to 35 per cent, from 40 per cent. Rush said that had prompted some investors into action.
In Hawke’s Bay, consultant Philippa Pearse said first-home buyers and investors were interested in cheaper parts of Napier and Hastings. But investors were also active, including baby boomers looking for properties to rent or to buy for family members who could not afford to buy their own homes.
‘‘Central Hawke’s Bay has seen value growth of more than 20 per cent over the past year mainly due to increased demand from lowerincome families priced out of Napier and Hastings who now have to look further afield to more affordable homes.’’
First-home buyers were a big part of the Wellington market, consultant David Cornford said. Prices in the capital were up 8.6 per cent, year-on-year.
First-time buyers were responsible for 42 per cent of Lower Hutt sales and 30 per cent of all Wellington sales.
‘‘There is a lack of supply in the market particularly in Wellington City itself and Porirua, which is keeping prices up for those properties that are selling on the market,’’ Cornford said.
Dunedin also reported strong demand, with prices up 9.3 per cent. Consultant Aidan Young said some buyers were skipping due diligence because they were worried about missing out.
‘‘All sectors of the housing market appear to be performing well, from the low to high range, and the market sentiment is positive, with reports that open homes are being well-attended and that many buyers are becoming frustrated on missing out on properties.’’
But in Auckland, consultant James Steele said the market was sluggish and a lack of good listings.
‘‘First-home buyers remain active in the market and there is good demand for entry-level housing stock. However, many are still finding it difficult to get the finance to purchase, with prices remaining high,’’ he said.
‘‘Properties that are not wellpresented, have outstanding maintenance or are damp or shaded are sitting on the market for longer.
‘‘This is a change to when the market was very hot and everything was selling quickly.’’