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Home values rise at slowest pace since May

NZ NewswireNZ Newswire 31/10/2016 Tina Morrison

New Zealand residential property values increased at the slowest annual pace in five months in October, as tougher lending restrictions constrained Auckland growth.

The average value of a New Zealand home rose 13 per cent to $622,309 in October from a year earlier, the weakest annual growth rate since May, according to state-owned valuer Quotable Value.

Growth in Auckland house values increased at a 14 per cent annual pace in October, the slowest rate since March 2015, taking the average value for the Auckland region to $1.05 million.

The rate of growth in Auckland peaked at 24.4 per cent in November last year and has since slowed following the introduction of tighter loan-to-value lending restrictions by the Reserve Bank.

However, Wellington house values continued to accelerate with values in the region gaining at a 21 per cent annual rate to $558,886.

"Home values continue to rise faster in the Wellington region than Auckland, and the housing market in the capital appears largely unaffected by the new LVR restrictions, particularly at the more affordable end of the market in areas such as the Hutt Valley, Porirua and the Kapiti Coast," said QV spokesperson Andrea Rush.

Nationwide, sales volumes were down by about 12 per cent on the same period last year and mortgage approval rates were also down, Rush said.

In other centres, Hamilton jumped 25 per cent to $537,388, Tauranga rose 27 per cent to $651,725, Dunedin lifted 13 per cent to $341,566, and Christchurch edged up 4.7 per cent to $498,425.

Napier values gained 18 per cent to $396,000, Hastings increased 16 per cent to $366,083, and Nelson advanced 14 per cent to $484,019.

In the North Island, all areas saw double-digit value growth over the past year.

In the South Island, annual value growth in provincial centres was much lower, with most areas seeing single digit value growth, although some areas such as Queenstown Lakes district bucked the trend, with values soaring 30 per cent.

The only areas to see an annual decrease in values were the West Coast districts of Buller and Grey, the Hurunui district in North Canterbury and the south-western suburbs of Christchurch.

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