Key Facts

  • New Zealand’s housing market is seeing a dip in global rankings, according to data from real estate consultancy Knight Frank.
  • The international annual house price growth across the tracked cities increased to 2.3% in the third quarter of last year, up from 1.6% previously.
  • Turkish cities, Ankara and Istanbul, topped the growth rate with 102.7% and 77.6% respectively.
  • Auckland, the only New Zealand city featured, slipped to 84th out of 107 cities, with a 3.3% three-month price growth and a 2.9% drop over 12 months.
  • Brad Olsen, Infometrics CEO suggested Auckland’s low position may be temporary due to high population growth.
  • However, rising interest rates and mortgage repayments could hinder strong house price growth.

Article Summary

In the International House Price Rankings, New Zealand’s housing market has experienced a drop, as revealed by real estate consultancy Knight Frank. It has been observed that the international annual house price growth across different cities had risen to 2.3% during the third quarter of the previous year from a previous 1.6%

The report mentioned that Turkish cities, specifically Ankara and Istanbul, recorded the highest growth rates of 102.7% and 77.6% respectively. On the other hand, Auckland, the sole representative from New Zealand, fell to the 84th position out of 107 cities, documenting a three-month price growth of 3.3% and a decrease of 2.9% over 12 months.

Infometrics CEO, Brad Olsen, however, expressed the possibility of the recent ranking of Auckland being temporary. He cited the rapid pace of population growth as a potential impetus for future rises in the housing market. Nevertheless, he also emphasized caution, given the significant increase in interest rates and mortgage payments that could possibly slow house price growth and affordability.

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