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Rocketing house prices slowing: QV

NZ Newswire logoNZ Newswire 31/05/2017

House prices across the country have risen at their slowest annual rate in two years, dropping below double-digit growth, according to the latest monthly QV House Price Index.

Nationwide residential property values for May increased 9.7 per cent over the previous year, QV said on Thursday, attributing the slow-down to mortgage lending restrictions and tougher lending criteria from banks.

Values rose by 0.4 per cent over the three months to May and the nationwide average value is now $634,018 which, when adjusted for inflation, is 27.8 per cent above the 2007 peak.

"Nationwide value growth continues to ease back due to lower demand in the housing market caused by the latest round of LVR restrictions and tougher lending criteria from the banks as we head into the winter period," QV spokeswoman Andrea Rush said.

"Sales volumes are lower than they were this time last year, particularly in Auckland and its possible market activity may now remain more subdued until after the election."

Prices in Wellington and Dunedin were stronger than the other main centres, but were also starting to ease back a little, she said.

In the country's biggest city, Auckland, where property prices have been going through the roof, there was a return to more "normal" market conditions, QV said.

Auckland region house prices increased 9.3 per cent year-on-year, the slowest annual rate of growth seen since November 2014.

Quarterly value growth remained flat, rising just 0.1 per cent over the past three months.

The average value for the Auckland region is now $1,044,561.

RISING HOUSE PRICES IN THE YEAR TO MAY:

* Whangarei, 19.4 per cent, average price $483,049

* Auckland, 9.3 per cent, $1,044,561

* Tauranga, 15.4 per cent, $683,012

* Hamilton, 12.3 per cent, $537,152

* Rotorua, 23.9 per cent, $394,408

* New Plymouth, 9.7 per cent, $420,080

* Napier, 19.3 per cent, 436,454

* Hastings, 21.9 per cent, $413,801

* Palmerston North, 14.3 per cent, $357,248

* Wellington, 20.4 per cent, $607,907

*Nelson, 16.1 per cent, $527,974

* Christchurch, 1 per cent, $495,070

* Queenstown Lakes, 20.3 per cent, $1,052,211

* Dunedin, 15.5 per cent, $373,810

* Invercargill, 11.3 per cent, $243,144.

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