New Zealand house prices rise 12% y-o-y in April as low rates tempt buyers

[WELLINGTON] New Zealand house prices rose 12 per cent in the year to April, the government property valuer said on Wednesday, as record low interest rates drew more buyers into the market.

The 12 per cent rise in Quotable Value's (QV) residential property price index compared with an annual rate of 11.4 per cent in March.

The index is now 16.9 per cent above the market's previous peak in late 2007. "All the main centres around New Zealand and many regional centres have seen home values increase during April, with the promise of continued record low interest rates providing confidence in the housing sector," said QV spokeswoman Andrea Rush.

House prices in the Auckland region's booming property market were 16.5 per cent higher in the year to April, compared with a 16.9 per cent rise in March.

REUTERS