.png "RE Investar-Logo-MRI_Colour web 229x115px (1)"){kind=logo}
In mid-July the Reserve Bank announced new tighter restrictions on residential lending, including a requirement for no more than 5 per cent of bank lending to residential property investors to those with less than 40 per cent equity.The latest round of LVR restrictions were beginning to take effect, Rush said.
"Auckland, Tauranga and Hamilton home values are continuing to rise, just at a slightly slower pace than they were prior to the new LVR measures being introduced in late July."
The average price for a house in New Zealand is now $622,309.
However, the new build market remained strong throughout the country, as the LVR restrictions for investors did not apply to new homes, Rush said.
"Less established investors appear to be having difficulty raising finance with the new 40 per cent deposit requirement...
"Those investors shut out of more expensive markets appear to be turning their sights to more affordable markets in relatively close proximity to North Island main centres, such as the Western Bay of Plenty, Whangarei, Rotorua and the Waikato district and all of these areas continue to see very strong value growth."
The Auckland market has increased 13.8 per cent year on year - the slowest rate since March 2015. The average value for the Auckland region is now $1.045 million.
QV Auckland general manager Jan O'Donoghue said she was continuing to see a lower level of activity and demand in the market.
However, house values kept rising and there was continued strength in the $1.5m bracket of the market, she said.
In the wider Wellington regions, house values jumped by 21.1 per cent in a year, including 6.6 per cent in three months.
Wellington City values increased by 21.3 per cent in a year, and 6 per cent in three months, to an average value of $671,387.
QV homevalue general manager David Nagel said there was still strong demand from buyers and investors.
"The upper end of the market is not experiencing as much activity, demand and value growth as the low end of the market currently.
"However, good quality, high end, central Wellington properties attract high interest when they come onto the market, because there isn't many of them available, and they sell quickly," he said.
"We continue to see potential buyers who have missed out on multiple properties, becoming frustrated which can then fuel the market, as these buyers can resort to desperate measures and high offers to secure a property."
The common issue of a shortage of properties on the market, was still causing issues.
"To date, the usual annual seasonal surge in property listings has not eventuated."
The Hutt Valley market was continuing to show strong value growth, while the Kapiti Coast was becoming more popular, Nagel said.
"This is primarily down to there being more affordable, entry-level properties in the Hutt Valley both for first home buyers and investors."
"The Kapiti Coast market is also continuing to experience high demand as it develops well into a serious alternative for Wellingtonians - particularly with new motorway and infrastructure development underway, which is hoped will stabilise and possibly reduce the commuting distance between Wellington and the Kapiti Coast."
On the up and up:
Average house value & 12-month increase
Auckland region: $1,045,207 - up 13.8 per cent
Wellington region: $558,886 - up 21.1 per cent
Christchurch: $498,425 - up 4.7 per cent
.png?width=200&height=100&name=RE%20Investar-Logo-MRI_Colour%20web%20229x115px%20(1).png "RE Investar-Logo-MRI_Colour web 229x115px (1)"){kind=logo}