The Wellington region led the way with annual growth of 23.7 per cent to an average value of $971,393, while the Auckland region was up 15.6 per cent at $1.24 million. But the biggest increases were in provincial areas where housing was typically cheaper. Gisborne, Kapiti Coast, Whanganui, Napier and Palmerston North all had annual value gains of more than 30 per cent. Gisborne had the steepest rise at 33.3 per cent, to $579,361. CoreLogic head of research Nick Goodall said the acceleration in monthly value increases might seem surprising given the Government’s recently announced tax changes for property investors, but it would take another month or so for the data to reflect that.
Main centres
Auckland saw average property values rise by another 2.4 percent in April - a yearly increase of 15.6 percent and an average value of nearly $1.25 million.
In Hamilton, the pace of monthly changes in average prices gained momentum with 4.1 percent growth. Mortgaged investors have certainly been very keen on Hamilton, with a 39 percent share of purchases so far this year - but the latest policy changes will start to impact this group, almost immediately, CoreLogic head of research Nick Goodall said.
Tauranga s average house price levels exceeded $900,000 for the first time in April - up to $922,000. That s 19 percent higher than a year ago.
File photo.
Photo: RNZ / Nate McKinnon
CoreLogic House Price Index tracks property value change and its latest report has found a reduction in demand of valuations, down 11 percent compared to the previous 6 months. There are signs that there are fewer buyers talking to banks about issuing them mortgages to buy another property, CoreLogic Head of research Nick Goodall said.
From now until the rest of the year, the impact of the official reimplementation of the LVR is expected to cool the market.
He said anecdotes throughout April were of quieter open homes, a greater share of auctions passing in and fear of over paying having replaced buyers fears of missing out.
Monique Ford/Stuff
House prices in the Wellington region increase 23.7 per cent over the last 12 months. CoreLogic is predicting the market to slow in the near future.
Relief for house buyers in the Wellington region’s booming property market could be on the horizon with signs of a slowdown beginning to show, says CoreLogic.
Tax changes to interest deductibility are predicted to slow the market and could eventually result in it flattening says the property analytics provider’s head of research, Nick Goodall. CoreLogic’s forecast will be welcome news to buyers across the Wellington region where the average property value reached $971,393, an increase of 23.7 per cent in the 12 months to April 1, while places like the Auckland area had a smaller growth of 15.6 per cent.
Nationally, price growth was expected to slow because this year’s tax changes reduced the profitability of property investment. The market had been less busy in April than in March, with fewer home appraisals and valuations, he said. Debi Pratt, who owns a branch of Tall Poppy Real Estate in Christchurch, said demand dropped off suddenly when the changes were announced. Auctions were also not clearing as many homes, she said. “I’ve noticed a marked reduction in attendance at open homes, and offers on property.”
KIRK HARGREAVES/Stuff
New tax rules for property investors are expected to cool the market.