Provisional data from New Zealand’s largest real estate group Harcourts for the month of February shows there is continued pressure on the housing market in Auckland and Northland.
The group said its average sales price had reached $644,613 – up 13% on the same time last year.
Chief executive Hayden Duncan said that each month Harcourts’ data was demonstrating that the LVR restrictions have not had the intended effect, because prices and written sales were continuing to increase.
First-home buyers and investors, who were initially dissuaded from entering the market because of the restrictions, had found their way around the need for a 20% deposit through the assistance of second-tier lenders and family loans.
Harcourts sales consultants continued to report increased interest in properties on the outer edges of Auckland, as buyers looked to make affordable purchases away from the heated central suburbs.
He said rising immigration and falling unemployment had contributed to the overall confidence in the housing market and demand for property remained extremely high.