There is good news for first time home buyers struggling to get into the Auckland market, with the latest monthly QV House Price Index showing negative growth for the first time in six years.
Residential property values across the Auckland Region decreased 0.6 per cent year on year with house values dropping by 0.5 per cent over the past three months.
Auckland's negative growth is in contrast to the nationwide residential property values which increased by 3.9 per cent in October. This increase marks the slowest annual rate since 2012.
Even though the Auckland market is on a downward trend the average house value for the region is still $1,038,722, meaning values are now on average 90.1 per cent higher than the previous peak in 2007 according to the QV report.
In contrast the average house value nationwide is $646,807, that's 56.1 per cent above the market peak of 2007.
Ashley Church says the new rules aren’t a ban, it’s a redirection of investment.
Yesterday Property Institute CEO Ashley Church was interviewed on TVNZ1's Breakfast show, where he was not convinced the new Government's foreign buyer ban would have an instant effect on the Kiwi housing market.
"It's not a ban, it's a redirection of investment," he said.
"Foreign investors who want to invest in New Zealand residential property they can still do so, but they've got to invest it in the construction of new buildings. That's a good thing for the economy, with 40,000 houses in Auckland required almost straight away."
On Monday Prime Minister Jacinda Ardern announced foreign speculators will no longer be able to buy houses in New Zealand from early next year.
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