tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 1st, 10:39AM

News

rss
Latest Headlines

Decline in affordability round NZ

Rising house prices have led to a decline in housing affordability in most regions of the country over the last quarter.

Thursday, July 20th 2017, 12:00AM

by Miriam Bell

Massey University’s latest Home Affordability Report shows there was a decline of 9.6% in national affordability in the March to May 2017 quarter.

It also shows that most regions have seen a decline in affordability over the quarter, as well as over the past 12 months.

The only exceptions are Otago – not including the Central Otago Lakes region – where affordability improved by a modest 1.9% over the quarter, and Canterbury/Westland where affordability improved by 0.5% year-on-year.

According to the report, the decline in affordability was largely driven by increases in house prices in nine regions over the quarter, which contributed to a 9.1% increase in the median house sale price.

Massey University associate professor Graham Squires, who authored the report, said that, when it comes to house price growth, some of the regions are now surging past Auckland.

“Year-on-year median house prices in Northland have increased by 28.3% and in Nelson prices are up 21.8%. This compares to a 3.7% increase in Auckland.”

Borrowing costs generally remain low which means the key element driving New Zealand’s affordability statistics are property prices, he said.

“But New Zealand house prices need to be placed in a global perspective.

“There has been a slowdown in house prices in some overseas cities and the global flows of funds can have an impact on bank lending and demand for housing in global cities like Auckland.”

Meanwhile, although regions around the country have seen a decline in affordability, Central Otago Lakes and Auckland remain the least affordable regions in New Zealand.

The Central Otago Lakes region has soared past Auckland to become the least affordable region in the country.

It saw affordability decline by 10.5% over the quarter and is now 70% less affordable than the rest of the country.

Squires said that it’s likely this is a continued reflection of tourism industry demand in Queenstown, a shortage of housing supply, speculative investment demand and largely stagnant wages in the region.

“But Auckland, where affordability dropped by 4.5% over the quarter, also remains 48% less affordable than the rest of New Zealand.

"So first homebuyers in these two regions still face considerable barriers to entering the residential property market.

“This is clearly illustrated by the house price-to- wage ratios: median house prices are now 15.2 times annual wages for the Central Otago Lakes region and 13.3 times annual wages for Auckland.”

Southland remains the most affordable region in the country, despite a 13.7% decline in affordability over the quarter.

Read more:

Super City affordability slides further 

Auckland affordability a credit negative – Moodys 

Affordability measure proves more houses needed

« New builds: what investors should knowThursday news in brief »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com