Measures help slow Auckland house prices

Tuesday, 10 November 2015

Measures help slow Auckland house prices says real estate boss

Century 21 New Zealand’s National Manager Geoff Barnett says he’s not surprised to see a softening of the hot Auckland residential housing market in the past month.

His comments follow today’s release of the latest October REINZ statistics which show the Auckland region’s monthly median price down three percent after reaching a record high in September.

Mr Barnett points to the impact of new restrictions introduced.

“I think the Government’s introduction of the ‘bright-line’ test from 1 October has had a measurable impact. Let’s not forget as well as a lot of residential property now being subject to a capital gains tax if sold within two years, non-residents now need to now get a New Zealand bank account and an IRD number before they can invest. That has slowed them down.

“These measures kicked in on 1 October and subsequently have had a direct and immediate impact on the October residential market in Auckland. There’s now no doubt about that, and the latest REINZ statistics and comments prove it.

“Having said that let’s not forget that the Auckland regional median price for October 2015 is still up 17% from October 2014, but it has come back somewhat from the giddy heights of September.

“Auckland is cushioned by the fact that there is a shortage of housing stock and it enjoys huge population growth. So while there may be swings and roundabouts from month to month and with policy and lending changes, Auckland housing demand remains strong.

“Further, I suspect it will be another strong summer for the Auckland residential housing market which will only be boosted further if interest rates fall on 10 December,” says Geoff Barnett.

ENDS

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