First-home buyers take their chance
‘‘First-home buyers are very active in the market, particularly in the Hutt Valley and Porirua where many are taking advantage of the Kiwisaver HomeStart grant.’’
First-home buyers are making the most of a quieter property market, property data firm QV says.
It has released its March statistics, which show residential property value growth is subdued compared to recent years, particularly in the main centres.
Auckland prices are up just 1 per cent year-on-year. Wellington’s are up 8.2 per cent and Christchurch’s down 0.6 per cent.
The national growth rate was 7.3 per cent, the fastest annual increase in nine months.
Sales volumes were lower than normal for March, spokeswoman Andrea Rush said.
‘‘With restrictions on finance being eased by the retail banks it’s been a little easier for some investors and home-buyers to gain finance to purchase,’’ she said.
‘‘First-home buyers appear to be capitalising on subdued investor activity and some are finding they can purchase more easily without the same level of competition from multiple property owners if they are not already priced out of the market.’’
Reserve Bank data shows $727 million of lending was done to first-home buyers in February, compared to $591m in February last year and February 2016.
In the capital, senior consultant David Cornford said there was strong demand for properties under $700,000.
‘‘First-home buyers are very active in the market, particularly in the Hutt Valley and Porirua where many are taking advantage of the Kiwisaver HomeStart grant, capped at $500,000 for existing dwellings and $550,000 for new dwellings. This segment of the market there is particularly strong.
‘‘Well-presented and located homes continue to attract a good amount of attention and are selling well and there is solid demand for vacant land and new builds.’’
Rush said it was regional New Zealand that had the fastest value growth, driven by people looking for more affordable homes or investment properties.
Opotiki had the fastest price growth, up 16.1 per cent in the first quarter of the year.
Napier and Hastings were up up 17.6 per cent and 14.7 per cent compared to 2017, respectively.