PHOTO: New Zealand Property
Aug. 13 (BusinessDesk) – Property values outside Auckland have reached a record high, the Real Estate Institute of New Zealand’s (REINZ) latest House Price Index shows.
The index – which measures changing values of property in the market – rose to 2,761 in July, up 1.5 percent from a year earlier. Excluding Auckland, the measure rose to a record high, up 5.9 percent at 2,739.
The Auckland index fell 3.3 percent from a year ago to 2,789, but REINZ chief executive Bindi Norwell says the three-month trend is up 0.5 percent, showing “signs of green shoots”.
“This is the first time in eight months that we’ve seen the number of properties sold around the country increase on an annual basis suggesting that we’re starting to see some early signs of growth,” Norwell said. “Some of this can be attributed to more certainty post the removal of the capital gains tax, but it’s also about pockets of renewed confidence and parts of the market finding its new normal in terms of pricing.”
Norwell added that the drop in the official cash rate last week should stoke more growth in the coming months, as will warmer weather.
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