Average value of NZ homes up $50,000 during the 3 months of the latest Covid outbreak

Property / news

The average value of New Zealand homes passes $1 million for the first time, Quotable Value says

10th Nov 21, 7:13am by Greg Ninness

The average value of New Zealand homes gained $50,000 over the three months of the current Covid Delta outbreak and now sits at just over $1 million.

According to the latest House Price Index figures from Quotable Value, the average value of NZ dwellings increased from $952,078 at the end of July, just before the latest Covid outbreak forced the country into lockdowns, to $1,002,153 at the end of October.

That's an increase of $50,075, or 5.3%, over that three month period.

The biggest gain in property values occurred in an area that has supposedly been one of the worst affected economically by the latest outbreak, Queenstown-Lakes, where the average dwelling value increased by $137,397 over the last three months.

That was followed by Auckland +$75,219, Tauranga +$68,876 and Christchurch +$66,272.

The smallest increase was in Invercargill where the average residential property value increased by a comparatively modest $20,869 over the three months to October, followed by Marlborough +$22,703 and Dunedin +$25,749.

In percentage terms the biggest increase over the last three months was in Christchurch at 10%, followed by Queenstown-Lakes 9.6% and Tauranga 6.6%.

There are now four centres where the average dwelling value is over $1 million - Queenstown-Lakes $1,572,535, Auckland $1,427,896, Tauranga $1,114,616 and Wellington Region $1,068,669.

"There's certainly still buyers out there who are keen to commit to property transactions despite ongoing uncertainty around Covid-19 and the impacts this is likely to have on the economic recovery," QV General Manager David Nagel said.

"Credit availability continues to tighten as banks respond to Reserve Bank concerns around property market stability, particularly with interest rates on the rise.

"But a continued lack of supply has resulted in a resurgence in prices across all 16 metro locations we monitor," he said.

The chart below shows the average dwelling value in all main urban districts at the end of October and their percentage change over the previous three months.

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110 Comments

by Fairlyfrank | 10th Nov 21, 7:26am 1636482362

Crazy gains , wonder when it will end ? Still showing no sign of stopping average house 2 million here we come . This hyper inflation in house prices would have to be unprecedented as I recall maybe a Venezuela outcome .

by Farce Majeure | 10th Nov 21, 7:33am 1636482833

Indeed, to what extent are houses rising vs. dollars falling? Houses may be up 30% or more in nzd, but getting cheaper every day in bitcoin. Are the biggest mortgage holders essentially shorting the nzd? Might be a solid bet.

by J.C. | 10th Nov 21, 9:34am 1636490048

Indeed, to what extent are houses rising vs. dollars falling?

NZD has not been falling against other currencies such as USD in the past 24 months, but the price of gold in NZD has increased approx 40% over the same time period. That being said, the purchasing power of NZD is likely to be going backwards. The main vehicle in by which money is 'created' in fiat economies like NZ and Australia in particular is through the issuance of mortgages. So the money supply is expanding and the purchasing power of NZD is weakening. Benefits accruing to landowners as that is the banks create the credit to bid up the price of land. The problem is that the sheeple think they've hit the pot of gold because house prices are off the richter.

IMO, the under-performance of gold is a little bit overstated as it appears to be holding its own in the face of rampant monetary destruction. The nation's savings are all concentrated in a single trade (much like China) while everything seems to be tumbling or on the verge of falling off a cliff economically.

by Jamin | 10th Nov 21, 8:59am 1636487986

In essence all mortgage holders are kind of shorting the nzd. Inflation is great long term if you have a mortgage and reduces it’s real value. If inflation is running at 5% then your 1 million dollar mortgage is getting 50 grand cheaper every year

by J.C. | 10th Nov 21, 9:15am 1636488947

Inflation is great long term if you have a mortgage and reduces it’s real value. If inflation is running at 5% then your 1 million dollar mortgage is getting 50 grand cheaper every year

Disagree. Yours is the 'accepted thinking'. While the cost of goods and services and money supply are both increasing, if income levels are not increasing, then your bubble is screwed. You still need a steady stream of marginal buyers.

by Solid_Granite | 10th Nov 21, 11:02am 1636495345

Yeah I see this too often. People praising inflation as it erodes the value of your loan away. I think you‘ll find the higher the inflation, the higher the interest charged by the banks.

The amount of value eroded by inflation is made up by the interest charged over the same period.

by J.C. | 10th Nov 21, 12:09pm 1636499342

Yeah I see this too often. People praising inflation as it erodes the value of your loan away. I think you‘ll find the higher the inflation, the higher the interest charged by the banks.

Wasn't entirely my point. My point was that incomes are barely tracking CPI inflation. But are far behind monetary expansion, which is reflected in house prices (banks lending credit into existence). Marginal buyers are crucial for any property bubble.

by tothepoint | 10th Nov 21, 10:15am 1636492511

Rampant increases in house prices across the country means that "fear of missing out" syndrome has become widespread among home buyers.

But if the panic continues, prices will surge higher.

The more buyers who are prepared to stand back from the market and give it a chance to cool, the better off all buyers will be.

TTP

by Brock Landers | 10th Nov 21, 10:18am 1636492694

That will only happen in aggregate when the supply of credit is restricted.

The bankers pull all the strings.

by JustAnOpinion | 10th Nov 21, 2:11pm 1636506689

I think the availability and price of credit moves the prices more than constrained supply caused by pumping migration. The availability of credit is drying up (DTI) and the cost is increasing so all the strings are being pulled. What remains is FOMO and RE propaganda sites such as Homes, how long that last gasp will last is anyone's guess but I think we will see the market turn soon.

by nktokyo | 10th Nov 21, 7:34am 1636482885

It's over team, interest rates have jumped, listings are up 20% in most areas and banks are restricting lending. You're seeing settlements from the last round at the bar at 2am.

by Nifty1 | 10th Nov 21, 7:41am 1636483301

Auckland is still going crazy, no evidence of a slowdown...

by JJS | 10th Nov 21, 8:56am 1636487817

We hit the peak last month. Looking around at Central Auckland listings (where I am living and considering an upgrade) there is a huge amount of new listings and quality properties are starting to pass in at auction. NZ Herald trying their best to continue the FOMO but it is dissipating.

by Mr Frank | 10th Nov 21, 8:59am 1636487991

Passed in doesn't mean there is no demand. It means sellers want more than before. When buyers are cognisant of the situation they will understand this is the new normal and start pushing their budgets up.

by JJS | 10th Nov 21, 9:03am 1636488215

I remember supply and demand from ECON101. At the moment demand has exceeded supply. With a dearth of new listings combined with buyers reducing their budgets as a result of sharp increase in interest rates, prices cannot continue to rise. I don't predict a crash, but people rushing out putting in silly pre auction offers or paying up for junk will be a thing of the past.

by HW2 | 10th Nov 21, 2:47pm 1636508871

Talking to my conveyancing lawyer in auckland, they are busier than busy with settlements.

by Albert2020 | 10th Nov 21, 10:35am 1636493743

How much of those new listings are just pent up supply from owners not willing to list during lockdown? I would say a large portion of new listings are from owners now realizing that level 2 and 1 as we know it are no longer and that there’s therefore no point waiting to list any longer

by HW2 | 10th Nov 21, 2:49pm 1636508963

I will be in front of the tv for once when the block nz auctions are broadcast over the weekend. Yes!

by Theoracle | 11th Nov 21, 12:17am 1636543022

Maybe finished in Auckland after repeated lockdowns but if a fraction of those surveyed wanting to leave actually leave everywhere else might get one last lift.

On an even more positive note, a mate of mine reckons the lockdown/ gang/ 3 waters/ whatever else protests could get ugly and escalate into springbok tour type action from this weekend.

by northman46 | 10th Nov 21, 7:47am 1636483620

It is frustrating how long it takes to get the data on sale prices in Wellington. Prices are only just trickling in from early September, or prior. Two or more months delay just adds to the FOMO.

by HouseMouse | 10th Nov 21, 10:29am 1636493397

nah, I say there's still one little surge left over summer

by JustAnOpinion | 10th Nov 21, 2:13pm 1636506817

Sorry to say you may be right here, as Auckland breaks free and hits the beach this summer all number of housing decisions will be made.

by HouseMouse | 10th Nov 21, 2:25pm 1636507530

Property plays so much off sentiment, and there will be more buoyant sentiment as we hit summer and the restrictions ease off.

Also, people will be conscious that this will be the last chance before interest rates surge next year.

Also factor in that developers are now in the hunt en masse for development sites since the government's planning announcements. Those 600 square metre sites that might have sold for $1.5 mill will now sell for at least $2 mill. Even if this only accounts for 5-10% of transactions, it's still going to lift the median that little bit higher.

So one last run of the bull market, and prices to go 5-10% higher, before the lull and potential fall away from autumn 2022...

by Lord Dowding | 10th Nov 21, 1:35pm 1636504531

You seem to be a long way from the action Amigo. Listing are not up 20% anywhere we are watching. Suggest you upgrade from those cheap seats.

by Nifty1 | 10th Nov 21, 7:50am 1636483853

Epic failure by the RBNZ and Government. This will go down in the history books.

by FCM | 10th Nov 21, 8:02am 1636484564

Yep head in the sand stuff..and they get paid to control this from happening. if they were in the private sector they would of been fired a long time ago, it seems incompetence is one of the criteria needed to be in government.

by RickStrauss | 10th Nov 21, 8:52pm 1636530765

I don't think anyone has truly believed there is any intent in RBNZ, government and the Treasury to prevent this happening, nor has their been for the last decade or two. They seem to have believed the "wealth effect" claptrap and been happy to enable living large off debt others must pay.

Disgraceful.

by bw | 10th Nov 21, 8:36am 1636486603

Let's ask ourselves, "Why has this happened?"

I, like you, have little time for the current RBNZ/Government policy that has produces this debacle. But many of the decision makers aren't stupid. Rather, they are scared stiff of the alternative.

John Key; a man with considerable financial markets acumen on all levels, was elected on a platform of reforming the housing market. Something scarred the daylights out of him when he 'got in', which saw him reneg on his election promises.

Jacinda Ardern, also elected to 'do something' about the housing market, but with far less financial nous than Key, was similarly frightened off (by the same bureaucratic advisors?).

And so, here we all are. Governed and Regulated by the Fearful, who hope that some sort of miracle will happen to make everything all right. Guess what? One isn't coming, and one day, someone will have the courage to act in our long-term interests.

"When all there is left is Hope, there is no hope"

by rastus1 | 10th Nov 21, 9:32am 1636489962

Nice little summary. However, I don't believe anyone will have the courage. Thus the situation will just implode and the leaders and bankers will blame COVID.

That is the 'plan'.

by VTHO | 10th Nov 21, 10:20am 1636492821

Hi Rastus. You are correct, the question is when?

by Feijoa | 10th Nov 21, 9:42am 1636490563

The explanation is political - not bureaucratic.

Cabinet will never vote to undertake major reforms that will result in their parties (usually plural in the MMP era) not being re-elected.

by HW2 | 10th Nov 21, 2:54pm 1636509275

I like key however he was a fraud and not able to do any magic or pull rabbits so to speak. That was obvious to me when they had the gfc summit and the grand idea was adventure bike tracks. Go along some of them now even the popular ones and you will have to ride in between the weeds covering it.

by Property_Wizard | 10th Nov 21, 8:05am 1636484730

Further proof of the damage this government has done to our dollar...

by Te Kooti | 10th Nov 21, 10:49am 1636494542

What are you talking about? The Kiwi is near all time highs against the A$ and the trade weighted index is currently 76 with a 40y average of 66 and 5y average of 73.8.

Do better.

by Audaxes | 10th Nov 21, 11:53am 1636498425

Who can afford to accept NZD as a form of payment for work rendered, when it is so debased the unit cost of shelter is ~$1,000,000 and it takes a few $millions or more to save $10,000 p.a. at current deposit interest rates? Oh, I nearly forgot, financial repression is rabid with inflation last reported at 4.9%.

by JustAnOpinion | 10th Nov 21, 2:17pm 1636507056

Indeed but our primary produce is still attracting good prices so there will support for that at least. More urgent is the combination of factors hitting the non-asset owning working class, their wages actually decreased 2.4% during the same period when you account for that CPI.

by Carinaz | 10th Nov 21, 8:07am 1636484855

Basically even now house prices are rising appox $4000 per week and still...

by jstockman2 | 10th Nov 21, 8:13am 1636485237

Insanity

What's the average wage, 60k?

by stuart786786 | 10th Nov 21, 8:26am 1636486004

60K is annually and this is in three months :).

From March Last year to now think has gone up from $55000 to million.

by Mr Frank | 10th Nov 21, 8:53am 1636487626

60k normally would seem amazingly high, but these days it's a drop in the bucket.

by HouseMouse | 10th Nov 21, 10:33am 1636493626

We have got to the point now where people call a 1% lift over a month 'minimal'. Annualised that's still 12%, which is significant.

by Zen20 | 10th Nov 21, 3:31pm 1636511475

Its around $1150 before tax per week - I mean really : most are nowhere near that

by stuart786786 | 10th Nov 21, 8:24am 1636485865

Now experts, Orr's of NZ representing and supporting ponzi will again say that that data lags (as they say everytime) and market has started to cool though data like before suggests that that house prices are increasing even now despite many claiming that housing market is cooling.

Mr Orr will still have reason to wait and watch and Jacinda lucky that is able to hide behind covid19.

by kpnuts | 10th Nov 21, 10:48am 1636494529

Covid will be all over bar the shouting by Easter -- be a BAU situation - 10 -20 deaths a week - under 1000 a year -- and significantly less than heart 8000 and cancer 9000 as a killer in NZ ---

Thats when National need to announce the new leader and thats when rising interest rates will really start hurting houseowners and landllords will pass it on to tenants as well -- and thats when Orr and Jacinda will really be under fire !

by Foxglove. | 10th Nov 21, 12:06pm 1636499202

I hope you are right but fear you might be wrong. National still appear a fractious & disunited lot. Personal ambitions outweigh party loyalty and indeed, the good of the nation, that they are meant to represent. At the moment this penny dreadful government of ours is having its weaknesses and incompetence exposed. If, in the near future, National start up on a palace revolution they will just be giving them a free pass.

by RickStrauss | 10th Nov 21, 6:22pm 1636521767

The problem for young Kiwis is National are even worse on housing. They just want to exempt the free money given to property from any tax, leaving young Kiwi workers to pay all the taxes.

by alittle | 10th Nov 21, 8:41am 1636486906

Not to forget that this price rise was in lockdown and can understand what will happen from here on hoing into summer season.

And RBNZ says that it is not their doing......

Can understand them fibbing but bigger surprise is that they also get away with lies and manipulation, no one raising or pointing them out except maybe a one or two article in media.

by Dale Smith | 10th Nov 21, 8:42am 1636486938

I've always said that every other town in NZ is just an Auckland cluster%@$& awaiting to happen. And so it is happening. The same silly land-use rules that Auckland uses, so do most other NZ towns and regions.

Just as Auckland has a wannabe Walter Mitty complex when comparing itself to other international cities, most NZ towns and their elected and public representatives secretly want to be king of something bigger.

Even if that something bigger is turning their town unaffordable to a large portion of the people that live there.

by bw | 10th Nov 21, 8:47am 1636487264

(From Aussie. Is it any different here? No)

Criminals pumping nefarious earnings into the housing market could be contributing to high house prices across the country, locking people out of owning a home....Criminals are able to use family members or other third parties with no criminal record to buy property...in their name...."A $2 company and off you go, no one will know what's going on."

https://www.perthnow.com.au/politics/money-laundering-pumps-up-housing-…

by rastus1 | 10th Nov 21, 9:34am 1636490096

Red herring to distract from the real criminals - like Mr orr & co.

by Average Kiwi | 10th Nov 21, 10:25am 1636493155

I wouldn't underestimate this. I personally know of Colleagues that have brought for offshore Friends & Relatives. Goodness knows how the money flows, But there are many circumventing the offshore buyer rules. Is it money laundering in some cases highly likely.

However I have to agree the real criminal's are the Reserve Bank and a complicit government. Basically zero population growth since Covid began, we are building flat out. So still points to the impacts of QE and low interest rates.

by rastus1 | 10th Nov 21, 1:02pm 1636502536

The Finance Intelligence Group traces all money flows. It's al there and available if an investigation is required.

by Slapheid | 10th Nov 21, 2:49pm 1636508982

Yes. I have a colleague who's sister in-law (Chinese-American, NZ resident) is actively buying property for overseas parents, to get money 'somewhere safe'....

by Mr Frank | 10th Nov 21, 8:52am 1636487537

November 2020: PM Jacinda Ardern on house prices: 'It just cannot keep increasing at the rate that it is'

https://www.nzherald.co.nz/nz/pm-jacinda-ardern-on-house-prices-it-just…

LOL

by refactornz | 10th Nov 21, 9:15am 1636488940

'It just cannot keep increasing at the rate that it is'

Everyone jumped to conclusions and thought she meant price rises would slow. But it seems she really meant that it just cannot keep increasing at such a slow rate. A higher rate of price rises were required.

by HouseMouse | 10th Nov 21, 10:35am 1636493749

Haha LOL

by JustAnOpinion | 10th Nov 21, 2:21pm 1636507299

She has certainly won this race prices have gone up faster on her watch than any others.

I wonder though if the young people of NZ really care anymore, is 800k any more realistic that a million or two for these folk as their wages continue to actually be decreased relative to inflation?

by Mr Frank | 10th Nov 21, 8:53am 1636487584

Highlights why property investment is always a winner long term... except these days you can earn hundreds of thousands within months.

by JJS | 10th Nov 21, 8:58am 1636487913

Is this data taken from properties that have sold (i.e. gone unconditional) in the month, or properties that have settled? If the latter this data is on average two months old. I truly believe we've seen the peak.

by Mr Frank | 10th Nov 21, 9:01am 1636488069

You need to adjust your belief.

We have not peaked.

The prices are based on properties going unconditional, so the data isn't that old.

by JJS | 10th Nov 21, 9:11am 1636488717

Aside from selling my home, is there a way I can short NZ property?

by Carlos67 | 10th Nov 21, 9:26am 1636489580

Nope. If your that confident of a market crash then sell your house and rent and wait for the crash. If history is anything to go by you will leave that rental in a box loaded into the back of a black hearse before that happens.

by RickStrauss | 10th Nov 21, 6:25pm 1636521913

When the politicians, central bankers and Treasury advisors are all invested in property it's dangerous to bet against them. They certainly seem prepared to pull out all the stops any time to protect property.

by Lord Dowding | 10th Nov 21, 2:23pm 1636507387

Open a trading account and short a REIT heavily weighted in NZ property

by Squishy | 10th Nov 21, 9:22am 1636489334

Why do people always pretend to be surprised when house prices increase? New Zealand housing has been indomitable. I suspect they will get a tailwind with border reopening and the resumption of migration.

by Carlos67 | 10th Nov 21, 9:30am 1636489801

Hate to say it but property in NZ could break the $2m barrier in only a few years time. Immigration from troubled waters combined with climate change will result in NZ becoming a bolt hole. This is no longer about what the local serfs can afford, NZ house pricing will go international.

by J.C. | 10th Nov 21, 10:03am 1636491780

I see. The world's wealthy want nothing but to pay a king's ransom to live in suburban NZ. You may have been reading too much Granny Herald.

by kpnuts | 10th Nov 21, 10:52am 1636494762

maybe not -- but they will certainly pay to live in semi rural, coastal and private locations -- which will have a knock on effect on prices in better suburban areas - and so on down the chain -

We have not really caught up with the demand despite 21 montsh of border closures -- and when they reopen there will be a huge influx of already granted visa applicants --

Only rising interest rates will save us at the moment

by Squishy | 10th Nov 21, 11:04am 1636495468

RBNZ already indicated they'd only raise by 25bps per meeting which is unlikely to scare the market this year.

by HouseMouse | 10th Nov 21, 11:14am 1636496084

Yep but rates are moving up anyway.

There will undoubtedly be FOMO before Xmas - everyone knows significantly higher rates are on their way next year.

by J.C. | 10th Nov 21, 12:11pm 1636499462

but they will certainly pay to live in semi rural, coastal and private locations -- which will have a knock on effect on prices in better suburban areas - and so on down the chain -

OK. Because 'you reckon'. Not going to fight this.

by mikekirk29 | 10th Nov 21, 9:28am 1636489691

As I have said repeatedly a market consists of buyers and sellers with an agreed price funded in some cases by mortgages

Price rising 20% pa plus rate rises ensure the market changes. Meaning rising prices will slow and sales will drop. Sales in last 4 months in Auckland are well down on last year mania and are reverting to the 2010-19 mean. Coming recession with plummeting growth forecasts in China and USA ensure that market will be further declining. It is called the economic cycle which central banks have tried to eliminate by cutting rates for last 7 years and using QE. That game is over

by hum | 10th Nov 21, 10:46am 1636494403

Thats right, We are not in a market when peoples can buy real assets with borowed money that doesnt existe, you ultimatery get todays assets with prices that are actualy future expected prices. ( plus distorted prices from qe and supressed interest rates.)

So here we are with a disconected prices compare from todays economy

by keriwin | 10th Nov 21, 10:10am 1636492216

Can we all agree that it wasn’t the Chinese who were causing house prices to go up? Shame on the racists in Labour and NZ First.

by muzled | 10th Nov 21, 10:48am 1636494521

You think that money still isn't finding a way to get into the country?

That's a lovely planet you live on.

by HouseMouse | 10th Nov 21, 10:51am 1636494665

Exactly. Having said that, while a factor, it probably has been exaggerated.

by Kaper2 | 10th Nov 21, 11:31am 1636497114

It's definitely the Chinese, there are tens of thousands of them in Auckland, still buying up large, developing new sites. Take a drive around so many building sites where it's 100% Chinese workers, every tradie that comes on site & the real estate guy, working 7 days a week, dawn till dusk when they can get away with it. Built & fitted out to Chinese tastes and on sold to Chinese through their networks.

by HouseMouse | 10th Nov 21, 11:37am 1636497460

Doing stuff like this, LOL

https://www.nzherald.co.nz/business/blocked-botch-up-new-hobsonville-po…

Clowns

by HouseMouse | 10th Nov 21, 11:42am 1636497727

BTW these developers talk a great game, which I don't buy at all.

They have owned an amazing, huge site in central New Lynn for many years, and have created masterplans with pretty pictures of thousands of apartments.

All they have delivered is a couple of hundred townhouses over the past few years.

Playing land banking games.

by hum | 10th Nov 21, 11:49am 1636498185

a good 4 wd will sort this problem ! but can it fit inside the garage is the question

by Lord Dowding | 10th Nov 21, 2:36pm 1636508208

Wasn’t really anything to do with being racist rather an accurate observation that the Chinese appeared to be cleaning up at Auctions.

I love the Chinese they’re a pleasure do do business with. Pure efficiency.

Our Chinese neighbours are lovely as well.

by HouseMouse | 10th Nov 21, 10:50am 1636494606

So, this is a great example of what I have been talking about for months - sites selling for crazy prices not based on their current zoning, but on what the zoning will become over the next year.

This kind of thing will be helping to support higher prices:. https://www.nzherald.co.nz/property/the-spinoff-non-subdividable-proper…

by PatrickW | 10th Nov 21, 12:12pm 1636499528

20 permanent visa migrants , Doctor, Engineers, Veterinarian, Developer and an Architect arrived in NZ 2017 and just recently left on July 2021, grateful for the 4 year TTC. I was one of the 20. More wanted to leave but covid caused a temporary change in plans. Only temporary. Rising house prices the culprit but more so the quality of the homes for the value was the overwhelming consensus view on our decision to leave. The media is consistent on reporting house price gains while government with central banks accelerate house appreciation. Yet they all deliberately fail to report the unspoken truth. Skilled people are leaving and many more are no longer thinking of coming. The government is crippling New Zealand for many years to come. The unspoken truth.

by company of heroes | 10th Nov 21, 12:34pm 1636500870

Yeah, covid and housing price will be the key factors make people leave New Zealand. And it's not about what we got ourselves into this mess that makes people want to leave but how. Lacking of medical resources and facilities plus housing supply shortages have been there for many years. Every year and every election there are talks around those issues. But nothing gets done, nothing get planned ahead. The governments never get ahead of these. It's the disappointments and losing confidence in those who are in power drives skilled people out of New Zealand.

by Zachary Smith | 10th Nov 21, 12:40pm 1636501206

The temperate climate in New Zealand means the quality of our homes can be lower, especially in Auckland.

by PatrickW | 10th Nov 21, 1:15pm 1636503356

This is joke right? Or perhaps a fine example of why kiwi's accept substandard homes for elevated prices. As a developer I would thank, however, in good conscience and best practice I would prefer to warn you in the face of substandard building codes. We could not build this way and since there is no desire to change at the highest level, we decided to leave. We are not in the business of placing families and children in harms way for margin. I don't know why I'm even responding to this comment.....perhaps because I'm in between meetings...Perhaps you should google New Zealand homes Damp cold and moldy. Well known around the world for your fine quality and more so for such an accepting peoples to place their families in homes without adequate heating, insulation or modern building codes.

by Zachary Smith | 10th Nov 21, 3:00pm 1636509608

Inadequacies in quality can be easily mitigated by the purchase of an extra pullover, woolen hat and thick socks and opening a window occasionally. Kiwis have traditionally had poor quality housing stock but it didn't stop us from climbing Everest first, splitting the atom and making a significant contribution to Allied victory in the Battle of Britain.

by al123 | 10th Nov 21, 3:58pm 1636513086

So because of a bunch of things that all happened either much more than, or nearly, 50 years ago, you think that we shouldn't worry about damp and mouldy houses in 2021? Just to make sure I understand your argument...

by HW2 | 10th Nov 21, 4:15pm 1636514138

HOORAY Zachary for some common bloody sense. In the north from tauranga and above at least. I had to tell my tenant worker not to dry his clothes on the clothes horse in the lounge (umm dumb) and to use the clothesline outside or under the covered verandah. His question to me what is a clothesline? Umm dumber!

by Lord Dowding | 10th Nov 21, 4:16pm 1636514182

None of that is required with a central ducted heat pump run 24/7. T shirt year round.

by To the pint | 10th Nov 21, 2:52pm 1636509177

Where did you go from NZ?

by philthy | 10th Nov 21, 12:28pm 1636500530

Great job Adrian Orr, you're really reining those house prices in aren't you.

You can start doing your job that you're paid to do any time now.

by AdamJay1990 | 10th Nov 21, 12:34pm 1636500897

As an aspiring FHB in Auckland, this is very depressing.. Even with myself and my partner earning a decent wage, it is impossible to keep up..

by rastus1 | 10th Nov 21, 1:09pm 1636502952

I'll say it (again).

Mobilise the renting community and organise rolling rent strikes. This will create a risk in being a property investor - it is the removal of risk by mr orr and WFF that enables the continual uplift in prices.

by tulips | 10th Nov 21, 1:20pm 1636503638

This is one fast way to get evicted and blacklisted

by RickStrauss | 10th Nov 21, 6:29pm 1636522183

I did see someone suggesting renters click as many real estate ads as possible, every day. The click through costs really add up if enough are doing it. A technological protest, as it were.

Not because prices are the RE industry's fault, but because "a problem shared is a problem solved".

by Jesse1 | 10th Nov 21, 1:45pm 1636505145

If you don't have commitments keeping you here just go to Australia, even renting in Sydney you'll end up with a lot more savings than if you stay here. It's what I did and I highly recommend it. It's a much more fun city with better weather than Auckland too.

by Lord Dowding | 10th Nov 21, 2:48pm 1636508886

Awesome city until you have young ones the it’s just bloody awful. Unless you can afford to continue to live inner city or on the beaches it quickly becomes the epitome of a rat race. I did 8 years there.

by Jesse1 | 10th Nov 21, 3:09pm 1636510152

Yes that's really what I meant by commitments here. You wouldn't normally take a family there unless you were loaded or going for a really high paying job. I did 7 years and saved a lot while renting in Bondi. Other parts of Australia the equation makes more sense family to have a family than here (though not Byron either).

by Lord Dowding | 10th Nov 21, 2:31pm 1636507910

Council CVs coming out in December.

We bought end of last year. Our current homes value is $275k more than we paid you couldn’t make this sht up. Insane.

by Nifty1 | 10th Nov 21, 2:49pm 1636508993

Alot people going to feel rich when they come out. May feel poorer if rates increase though...

by Lord Dowding | 10th Nov 21, 4:07pm 1636513667

Rates would be going up even if values were the same they are calculated on your share of the bill which is ever increasing.

by Nifty1 | 10th Nov 21, 6:32pm 1636522371

From Auckland Council website, clearly property value and the % of increase in value has an impact on your rates paid:

Any rates increase is determined by your property value increase compared with the average increase across the Auckland region.

If your property has increased by more than the average, you may pay more than the average 3.5 per cent rates increase for the 2022/2023 year.

by HW2 | 10th Nov 21, 4:18pm 1636514307

We do not need the extra but oh well

by HW2 | 10th Nov 21, 4:19pm 1636514390

We do not need the extra but oh well

DP sorry... much like my property value increasing in doubles lolz

by CWBW | 10th Nov 21, 2:41pm 1636508477

I told you so!

People with kids should start them young.

There's still room for upward valuation.

Be quick.

by Zen20 | 10th Nov 21, 3:34pm 1636511693

Just spent a few sun-soaked days in Godzones new city of the sun - New Plymouth. I can tell you Summer Madness is going into overdrive. Kool & The Gang at the Bowl of Brooklands?

by Justa comment | 10th Nov 21, 3:43pm 1636512227

Fantastic news for some, terrible news for others. Everything has already been said over the last 12 months. The 3 main causes in chronological order- immigration, CGT fail, RBNZ interest rates. Personally even though my house is now 1.3, a sad day for NZ and what we used to have.

by Lord Dowding | 10th Nov 21, 4:11pm 1636513876

Yes I agree. The value doesn’t matter for us either as we only have one property but I’m just glad we bought when we did otherwise we’d have a pretty diluted deposit right now.

by hum | 10th Nov 21, 8:35pm 1636529733

10 % in chch that heading straight to a good 40% yoy. yet rbnz wait and see inflation 4.9 ocr 0.5 nothing to see here