Property prices and sales in New Zealand increased in December with median home values, excluding Auckland, reaching a new record.
Sales were up 3.5% year on year but fell 9.1% compared with November, according to the latest index from the Real Estate Institute of New Zealand.
For years the Reserve Bank of New Zealand (RBNZ) has been battling to contain house price inflation to the booming harbour city of Auckland, fearing its spread would encourage a binge of borrowing among already heavily indebted households
Quotable Value's (QV) residential property price index rose 14.2 percent in the year to December, compared with an annual rate of 15 percent in the previous month
Property prices in Auckland, New Zealand, remained stable last month but there was a significant fall in the number of sales compared to those in November and a year ago.
The average sales price for December at $869,492, down 0.8% on November's record average price while the median price rose to an all-time high of $800,000, up 0.6% on that for November, according to data from Barfoot and Thompson
A new withholding tax on sales of residential property in New Zealand by people who live overseas and go on to sell the property within two years of purchase will be introduced in 2016.
The Residential Land Withholding Tax (RLWT) is the third part of the Government’s investment property tax reforms announced as part of its Budget 2015. It will come into force on 01 July 2016 under a new Bill before Parliament.
The value of construction in most regions in New Zealand increased in the third quarter of 2015 with Auckland seeing a new high of $943 million worth of residential work, up $107 million from a year ago.
Overall building work worth $4.2 billion was put in place in the September 2015 quarter, up 4% on the September 2014 quarter, according to official figures from Statistics New Zealand.
Average residential property prices in Auckland, New Zealand’s most populous city, increased by 4.2% in November month on month, the biggest rise since March 2014.
This took the average price of a home to $876,075 and marks a substantial monthly rise compared to the more modest increases seen in the last seven months.
New Zealand house prices rose in November, the government property valuer said on Tuesday, as price gains in the biggest market Auckland slowed and investors looked around the country for new markets.
Residential property sales in New Zealand increase by 18.6% year on year in October but where down 4.1% compared to the previous month, according to the latest index figures.
The national median price was $460,000, up $30,000 or 7% on October 2014 and down 5.1% on September, the data from the Real Estate Institute of New Zealand shows.
Auckland and its surrounding regions have driven most of the recent growth in building consents for new dwellings in New Zealand, according to the latest official figures to be published.
In September 2015, some 2,242 new dwellings were given in permission in the country as whole, up 13% from the same month last year, the data from Statistics New Zealand shows.
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