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NZ home values continue to rise

NZ NewswireNZ Newswire 4/05/2016 Tina Morrison

New Zealand residential property values increased in the year through April, aided by low interest rates.

The average value of a New Zealand home rose 12 per cent to $568,058 in April from the year earlier, up from an 11.4 per cent rate of increase in the March year, according to state-owned valuer, Quotable Value.

Growth in Auckland house values slowed to a 16.5 per cent annual pace in April, from a 16.9 per cent in March, taking the average value in the region to $942,760.

Auckland realtor Barfoot & Thompson issued its own April data and reported lower sales volumes in a "restrained" market environment.

Auckland's property market has been hot as a shortage of supply and rapid inbound migration pushed up prices, stoking concerns about the affordability of housing.

The government and the Reserve Bank last year introduced measures to try and cool the city's property market.

However, QV said that low interest rates were stimulating demand, after the Reserve Bank in March cut the benchmark to a record low 2.25 per cent.

"All the main centres around New Zealand and many regional centres have seen home values increase during April, with the promise of continued low record interest rates providing confidence," said QV spokesperson Andrea Rush.

"All parts of the Auckland region are rising again, however at a slower rate than many other upper North Island centres."

Sales volumes for April were lower than March, most likely due to school holidays and Anzac weekend during the month, as many buyers take a holiday during that period, QV said.

AVERAGE HOME VALUES - YEAR TO APRIL

* National $568,058 - up 12 per cent

* Auckland $942,760 - up 16.5 per cent

* Wellington $599,482 - up 9.9 per cent

* Tauranga $577,494 - up 22 per cent

* Christchurch $488,943 - up 3.4 per cent

* Hamilton $471,072 - up 25 per cent

* Dunedin $317,714 - up 9 per cent

Source: QV

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