Tweet
Hi Guys
Makes you wonder.
News source
Regards
Makes you wonder.
NZ house prices high on world stage
17.09.2004
1.00pm - By ANNE GIBSON
Although latest figures showed our house prices had turned the corner, New Zealand is still towards the head of the field on a world stage according to the latest issue of The Economist.
The magazine pegs us high globally, having the world's third fastest house price rises behind Hong Kong and South Africa but the figures used are a comparison of historical data towards the peak of the boom and not the latest.
Using Quotable Value data, the magazine calculated that our houses rose in price 22.1 per cent between the second quarter of last year and this year's second quarter, just behind Hong Kong with a 28.7 per cent rise and South Africa with a 25.5 per cent rise.
But the London-headquartered magazine's numbers were somewhat behind the latest figures to be issued here on Thursday by the Real Estate Institute.
In his Auckland office, Deutsche Bank senior economist Ulf Schoefisch used the latest median and other economic indicators to find that house price inflation was close to zero, compared to the 6 per cent to 7 per cent rate it was growing at throughout various quarters last year.
Both he and the Reserve Bank are predicting a 4 per cent slide in the national median house price next year.
The Economist global house price indices, which started in 1997, found big price jumps worldwide but it ranked last Switzerland, Germany and Japan.
"Never before have real house prices been rising so fast in so many countries," said the article, noting Australian house prices fell 1.2 per cent in the second quarter and Sydney prices were down 5.4 per cent.
Mr Schoefisch got a stern reaction to his house price analysis in one quarter yesterday, being told on an Auckland radio station it was time he packed his bags and headed back to Germany.
"I didn't hear it, but I was told," said the somewhat hurt economist, adding that although he came from Bremen, he had been here 16 years and had no plans to leave.
BNZ chief economist Tony Alexander said this week's numbers "provided confirmation in all measures that the housing market has peaked and at best prices are flat," he said, based on sales of 8191 properties which he calculated were down 19.6 per cent from a year ago though still up 2 per cent from August 2002.
"In seasonally adjusted terms sales have been trending down since about May," he said, forecasting that the volume of houses sold would decline in the next year.
"So hopefully real estate agents have allowed for this in their motor vehicle and other purchases of the past year," Mr Alexander concluded.
17.09.2004
1.00pm - By ANNE GIBSON
Although latest figures showed our house prices had turned the corner, New Zealand is still towards the head of the field on a world stage according to the latest issue of The Economist.
The magazine pegs us high globally, having the world's third fastest house price rises behind Hong Kong and South Africa but the figures used are a comparison of historical data towards the peak of the boom and not the latest.
Using Quotable Value data, the magazine calculated that our houses rose in price 22.1 per cent between the second quarter of last year and this year's second quarter, just behind Hong Kong with a 28.7 per cent rise and South Africa with a 25.5 per cent rise.
But the London-headquartered magazine's numbers were somewhat behind the latest figures to be issued here on Thursday by the Real Estate Institute.
In his Auckland office, Deutsche Bank senior economist Ulf Schoefisch used the latest median and other economic indicators to find that house price inflation was close to zero, compared to the 6 per cent to 7 per cent rate it was growing at throughout various quarters last year.
Both he and the Reserve Bank are predicting a 4 per cent slide in the national median house price next year.
The Economist global house price indices, which started in 1997, found big price jumps worldwide but it ranked last Switzerland, Germany and Japan.
"Never before have real house prices been rising so fast in so many countries," said the article, noting Australian house prices fell 1.2 per cent in the second quarter and Sydney prices were down 5.4 per cent.
Mr Schoefisch got a stern reaction to his house price analysis in one quarter yesterday, being told on an Auckland radio station it was time he packed his bags and headed back to Germany.
"I didn't hear it, but I was told," said the somewhat hurt economist, adding that although he came from Bremen, he had been here 16 years and had no plans to leave.
BNZ chief economist Tony Alexander said this week's numbers "provided confirmation in all measures that the housing market has peaked and at best prices are flat," he said, based on sales of 8191 properties which he calculated were down 19.6 per cent from a year ago though still up 2 per cent from August 2002.
"In seasonally adjusted terms sales have been trending down since about May," he said, forecasting that the volume of houses sold would decline in the next year.
"So hopefully real estate agents have allowed for this in their motor vehicle and other purchases of the past year," Mr Alexander concluded.
News source
Regards