Chris Hutching | Tuesday May 28, 2013
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.