New Zealand property values at two year low

Country: New Zealand

20 July 2009

New Zealand property prices fell to their lowest level in over two years in Q1 2009, falling 9.3% year-on-year, according to data released by the government valuation agency, Quotable Value New Zealand.

Average New Zealand property prices fell by 1% in the first quarter of this year, the fifth quarterly decline in succession, the index shows. Prices in the main urban areas fell by 0.3%, while the median value of a property in Auckland, where there is a growing undersupply of homes, dropped 0.2%.

It is now hoped that easier access to mortgage finance for first time buyers, seen as key to a market revival, will help kick-start New Zealand’s property sector.

New Zealand is expected to increase ‘Welcome Home’ mortgage loans next month from its current rate of £280,000 (£110,800) to between $320,000 (£125,600) and $350,000 (£138,500).

President of the Real Estate Institute, Mike Elford, said: “If you couple that increase with the effect of lower interest rates, it's a huge step up for people.”