New Zealand house prices rise at slower rate in October: QV

[WELLINGTON] New Zealand house prices rose in October, the government property valuer said on Tuesday, though the rate of growth was slowing.

Quotable Value's (QV) residential property price index increased 12.7 per cent in the year to October, compared with an annual rate of 14.3 per cent in the previous month.

The index is now 50.2 per cent above the market's previous peak in late 2007, and QV said growth was slowing due to the Reserve Bank of New Zealand's restrictions on lending coming into effect.

House prices in the Auckland region were 13.8 per cent higher in the year to October, compared with a 15 per cent rise the month before.

The central bank announced new rules requiring people buying for investment purposes to have a 40 per cent deposit in July. Though the rules did not come into force until October, banks had agreed to act in accordance with the 'spirit' of the regulations until then.

REUTERS