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Auckland housing market cools

NZ Newswire logoNZ Newswire 28/02/2017

The property market has cooled in Auckland, Hamilton and Christchurch following the introduction of lending restrictions, but property valuer QV warns the Auckland situation could be short-lived.

QV's February house price index shows nationwide values rose by 1.1 per cent over the past three months and the average value nationwide is $631,349.

However, values in the Auckland region dropped 0.7 per cent for the quarter, and the average house now costs $1.043 million.

Wellington's house values had risen 4.3 per cent in the quarter and were up more than 21 per cent in the last year. Dunedin was also "buoyant".

"Values have dropped over the past quarter in parts of Auckland, Hamilton and Christchurch and rate of value growth in Tauranga has also slowed as the latest round of loan-value restrictions continue to take effect," said spokeswoman Andrea Rush.

Parts of Auckland had dropped in value but continued to rise in central Auckland, Waiheke Island, Rodney and Franklin.

When loan-value investor restrictions were introduced in Auckland in 2015 values dropped before starting to rise again six months later.

"So it's possible the latest quarterly decrease seen in parts of the Auckland will be relatively short-lived as the market drivers of relatively low interest rates, strong net migration and a high number of sales to investors remain," Ms Rush said.

QV said nationwide house values were 52.4 per cent above their previous market peak in late 2007 and in Auckland values were 91 per cent above the 2007 peak.

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