Tightening credit controls may still push house prices to plateau, according to a new survey
Confidence in the housing market is now higher than before last year’s election, according to the latest data from Colliers International.
The Colliers’ quarterly Residential Property Market Outlook Survey found overall sentiment in the residential property market has continued to track upwards this year, gaining 8 percentage points in the last quarter. This follows an increase of 13 percentage points in the previous quarter.
The survey suggests 36% of respondents now expect median house prices to increase over the next 12 months, up from 28% three months ago, and 15% months ago.
“While many respondents expect the market to plateau eventually, we’re still seeing an overwhelmingly positive picture for residential prices throughout the country,” says Colliers research and consulting national director Alan McMahon.
The highest expectations of house price rises were recorded in Queenstown, Tauranga/Mt Maunganui and Hamilton.
In the Auckland, Wellington and Queenstown markets, respondents expect prices for both new and existing apartments, terraced and detached houses will increase.
“The key comment made by respondents was that tightening credit controls, reduced immigration and uncertainty around interest rates will cause prices to plateau, but not yet,” said McMahon.
The quarterly residential survey was based on 5,734 responses.
