PHOTO:  ‘Every politician is scared’ of house prices falling – Don Brash. Credits: Video – The AM Show; Image 

Property analysts have blamed skyrocketing house prices on the Government’s unwillingness to do anything that might bring them down and people who own multiple properties taking advantage of cheap lending.

Values rose quickly in 2020 despite the recession and pandemic, defying predictions of a massive slump. New data released Wednesday by CoreLogic shows that trend continued right up until the end of the year, values up another 2.6 percent in December alone.

The 6.1 percent quarterly rise is the biggest since 2004. Annual double-digit percentage rises were seen in most regions – Gisborne led the way, with values up 30.4 percent in 2020, followed by Whanganui (24.9), Palmerston North (20.3) and Rotorua (19.2).

The main centres were no exception, with values up 15.4 percent in Wellington, 13.1 percent in Dunedin, 11.7 percent in Hamilton, 9.1 percent in Auckland and 6.2 percent in Christchurch.

The CoreLogic House Price Index for December points the finger at the Government and the Reserve Bank.

“With consistent messages regarding the need to protect that wealth coming from both the Government and the Reserve Bank (RBNZ)… the risk factor of property investment has, on the face of it, reduced, which only encourages greater investment.”