In its most recent six-monthly Financial Stability Report, published this month, the Reserve Bank has targeted Auckland property investors with a raft of new restrictions.
"We are proposing these adjustments to the LVR policy to more directly target investor activity in the Auckland region, where house prices relative to incomes and rent are more elevated than elsewhere in New Zealand," the bank’s governor Graeme Wheeler said in a statement. A number of commentators, however, have been quick to observe that the changes are likely to have little effect and will not solve the underlying issue of housing under-supply.
Following recent consultation, the Reserve is establishing a new asset clas…
Property values are soaring in Auckland, New Zealand, a city of 1.4 million people on a remote island straddling the Tasman Sea and the Pacific Ocean…
That’s how a recent article in the New York Times kicks off its account of inflated property prices in the city of sails. Returning expatriate investors, housing shortage and an influx of foreign buyers, according to the report, are all helping to fuel the city’s residential demand.
“Auckland’s beaches, clean air and environmentally friendly image are clear selling points for foreign property investors”, the article quotes analysts as saying. “And New Zealand’s property investment laws — which do not include a stamp duty or a capital gains t…
A New Zealand Herald report of 25 April revealed New Real Estate Institute data showing Auckland properties sold at auction last year went for a median 18% above capital valuation. Private treaty sales with an advertised listing price sold for 12% over CV.
That’s $43,200 more at auction compared to private treaty sale for a median priced Auckland home. These higher auction prices are helping to push Auckland’s property prices to new heights.
Stuff.co.nz reported earlier in April that the average Auckland house price is even more expensive than in Sydney. The median price in Auckland was $711,000 (AUD 698,000) in March compared to AUD 690,000 for Sydney.
Long-suffering home owner aspirants…
