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'Measures having effect' on Auckland housing market

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Fuseworks Media
Fuseworks Media

"If specific Government and Reserve Bank control measures hadn’t been taken, Auckland’s latest house prices would’ve probably been even steeper," says Century 21 New Zealand National Manager Geoff Barnett.

His comments follow today’s release of the latest monthly QV House Price Index.

"I think this latest QV data clearly shows the new restrictions are now having a measureable impact in Auckland. The foot has come off the accelerator a bit.

"The Government’s introduction of the ‘bright-line’ test from 1 October has made a difference. 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. Along with bigger deposits required, investors have certainly been slowed down.

"Things may still be going up in Auckland but without doubt the rise is no longer quite as steep. Just think back to September. That month was on fire but we’re now seeing the impact of the control measures actually kicking in."

Mr Barnett believes Auckland housing demand will remain strong largely because there remains a shortage of housing stock and the region enjoys huge population growth.

"If interest rates fall on 10 December and possibly again early next year, I suspect that will be a shot in the arm. Regardless we can still expect another strong summer for the Auckland residential housing market," says Geoff Barnett.

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