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Auckland house values keep on rising

Quotable Value residential real estate figures to be released next week are expected to reveal an explosion in Auckland property values.

The new data comes as the government moves to dampen house prices by releasing more land and requiring higher loan-to-value ratios.

But these measures will be slow and unlikely to curb the present momentum in Auckland prices.

Recent monthly sale statistics show that more of the city's suburbs are testing the $1 million mark for average sale prices.

QV’s last report in April reports that values across Auckland have continued to increase and are now up 12% on the past year.

However, UBS economists recently reported that the pace of price growth is slowing.

Meanwhile, residential property investors are doubtful government efforts can constrain house prices.

Crockers research quizzed investors about the measures introduced in the Budget.

One quarter of survey respondents think it is very unlikely the government will be able to have a significant effect on house prices, with a further third thinking it is unlikely – a total of 68%.

Respondents were split 40% each as to whether the government should intervene to address rising prices, while 6% felt drastic action was needed and 12% did not feel increasing prices are a problem.

c.hutch!@clear.net.nz

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Comments and questions
9

Said it once, said it 1000 times. The price rises in central Auckland are solely down to wealthy immigrants buying up prime properties. Change the rules so only those with citizenship can buy and the bubble will burst overnight. Simple. Don't believe me - ask a real estate agent or attend auctions.

I agree with you Richard, I'm a first time buyer and been looking for over six months, attended many open homes and auctions only to be pushed out and outbid by non residence.

My partner is Chinese so I don't hold a grudge against anyone but she can understand the conversations they have at auctions and open homes, it's shocking what she tells me. They are just snapping up properties just because they can, it's happening and you must be blind not to see it.

I had a lucky break this weekend week it was bad weather, no non residents turned up, just genuine first time buyers, bagged myself a 4 bed in West Harbour. After the auction the agent told me I was lucky that a group of certain buyers never turned up as I wouldn't have won!

Smudge said "...open homes and auctions only to be pushed out and outbid by non-residents...". My only question is: how do you know they are "non-residents? Have you checked/seen their passport/residency?

Larry, if you attended the auctions or actually talked to Real estate agents you would know.

The vendor's agent would never sell if they knew there were other bidders who could pay more?

Classic supply and demand scenario playing out before the eyes of Wellingtonians and other envious provincial NZ city residents.

Non-residents, coming down to NZ to buy large housing portfolios because not many other countries are stupid enough to will allow it, is the elephant in the room.
Politicians, many owning numerous rental properties themselves, and not wanting to offend the Chinese, will not bring in controls.
It is all about self-interest at the expense of genuine NZ home owners.

If you you buy the house with No 4 in the street number you should get a bargain by this logic. Chinese buyers are here to stay and, in fact, with China becoming a world superpower you would be brave to openly criticise them. The don't like that and will be taking note. In the last few years it was the older English immigrants buying and people complained about them. At least the Chinese are not whinging, have money and are younger. If you don't want your daughter to marry an Asian you should leave now before it too late, otherwise enjoy.

I have a bus load of wealthy Chinese dropping by our Auckland office in the next Thursday. Most have two or three listings on mind for the auctions.