Hamilton values skyrocketing

All eyes might be on Auckland, but the latest Quotable Values (QV) data shows it is Hamilton’s value growth that is now streaking ahead of the rest of the country.

By Miriam Bell

Hamilton’s residential property values are taking their turn in the spotlight as they continue to increase at a particularly strong pace, according to QV’s June data.

They have gone up by 29.0% year-on-year and by 6.9% over the past three months.

This leaves the city’s average value at $492,403.

On top of this, values in the surrounding districts are also rising rapidly….

03/11/2016 / by / in
Investors in the line of fire

Further targeting investors with tougher lending restrictions, as suggested by the Prime Minister, is misguided, according to an investor advocate.

By Miriam Bell

The latest Quotable Values (QV) data was released yesterday and it showed rapidly increasing values in housing markets nationwide.

Barfoot & Thompson’s June data also came out yesterday and it provided more evidence that Auckland’s prices are on the rise again.

Following the release of the data, Prime Minister John Key said the Reserve Bank had a responsibility to “have a look at the question around investors”.

Asked if the Reserve Bank should extend the LVR restrictions for Auckland investors to the rest of the country and/or further lower the investor threshold, Key indicated he thought it should….

03/11/2016 / by / in
Tax proposals target landlords – NZPIF

Labour’s new property tax proposals target rental property owners not traders and speculators, the NZ Property Investors Federation says.

By Miriam Bell

The Labour Party celebrated its centenary over the weekend by announcing a flagship housing policy which is intended to tackle the housing crisis on both supply and demand fronts.

In his speech, party leader Andrew Little said Labour has a comprehensive plan to tackle the housing crisis by building affordable houses and cracking down on speculators.

The three main elements of Labour’s policy are:…

03/11/2016 / by / in
Housing debt risk growing – ANZ

Credit and debt risks associated with the hot housing market are becoming problematic, according to a new report from ANZ.

The bank’s latest Property Focus is out and it highlights the issue of the debt accumulation necessary to meet rising house prices.

A combination of historically low interest rates, a record shortage of housing stock, and strong immigration mean the housing market is booming nationwide.

ANZ chief economist Cameron Bagrie said across-the-board strength is the only way to describe housing market activity.

“The market is hot. In fact, it is so strong that some of the associated increases in credit and debt accumulation risk becoming problematic.”

One well-reported reason for this is that current house prices are getting increasingly stretched relative to both incomes and rents, particularly in Auckland.

But Bagrie said that housing strength now risks turning into full-blown largesse and much more of a problem….

03/11/2016 / by / in
Speeding up housing development

Private sector needs to step up on the housing front following the government’s $1 billion infrastructure fund announcement, the Property Institute warns.

By Miriam Bell

At the National Party’s annual conference over the weekend, Prime Minister John Key said the government was establishing a $1 billlion infrastructure fund to help boost the supply of new housing.

The contestable fund will be open to applications from councils in the highest growth areas – which are currently Auckland, Christchurch, Queenstown, Tauranga, and Hamilton.

While the government will invest up front to ensure the infrastructure is in place, councils will have to repay the investment or buy back the assets once houses have been built and development contributions paid….

03/11/2016 / by / in