Tenant Defrauds Property Managers of $10,000+, Foreign Buyers may get a look-in, and Auckland Valuations Delayed Again
Too long; didn't read? Here's this week's TLDRs...
Woman sentenced for extensive rent fraud scheme
Christine Scott defrauded four property companies over nearly three years, using fake documents, including altered driver's licences and bank statements.
She repeatedly avoided paying rent, using false claims during Tenancy Tribunal hearings.
Despite being caught, she continued defrauding companies after her initial arrest in 2021.
Scott was sentenced to 10 months' home detention and 200 hours of community work.
The judge found her actions unusual, particularly for someone of her age and background. Read the article
Property values decline; listings and rental yields rise.
The residential real estate market is valued at $1.62 trillion.
Property values decreased by 0.2% in December, marking the ninth decline in the past 10 months.
Over 2024, property values fell by 3.9%, reaching a 17-month low.
Total property listings in December were 25,139, 25% higher than the five-year average.
Wellington's listings increased by nearly 30% compared to the previous year.
Rental market growth has slowed, with gross rental yields now at 3.9%, the highest since early 2016.
Approximately 66% of existing mortgages are fixed but due to re-price within the next 12 months.
Inflation has returned to the 1–3% target band, with the next OCR cut anticipated in February. Read the article
Property values fall; affordability challenges persist.
The current median house price is $780,000, down from $950,000 at the peak.
Auckland experienced a 20% decrease in property values, with the median price now at $1 million.
Wellington saw a 25% drop, bringing its median house price to $750,000.
The RBNZ's OCR increases have contributed to higher mortgage rates, impacting buyer demand.
Despite the downturn, housing affordability remains a significant issue. Read the article
Economists predict modest house price growth; caution advised.
House prices declined by 0.2% in December, marking the ninth decrease in 10 months, with a national median value now at $803,624.
Economists predict house prices will rise this year, with forecasts ranging from 6% to 10.9% increases.
The RBNZ is expected to lower the OCR in February, potentially by 0.5% or 0.75%, which may influence mortgage rates.
Independent economist Tony Alexander cautions against expecting a housing boom, citing factors like China's economic sluggishness and rising local costs.
Squirrel Mortgages anticipates interest rates to fall to between 4.5% and 5% by March or April, advising borrowers to adjust expectations from the ultra-low rates seen during the COVID-19 period. Read the article
Potential easing of foreign buyer ban under consideration.
Speculation is growing that the government may relax the foreign buyer ban this year.
The Overseas Investment Office has approved several high-value deals recently.
Revisions to the Active Investor Plus Visa programme are anticipated, potentially allowing residential property investments.
Some advocate raising the foreign purchase threshold to $5 million, citing economic benefits.
National previously proposed a 15% tax on foreign purchases of properties over $2 million. Read the article
Auckland property valuations delayed until May 2025.
Auckland property valuations, initially due in May last year, are delayed by at least four months due to data amendments required by the Valuer-General.
The delay is related to issues with data consistency, particularly in zoning and sales information.
Valuations help set rates but do not reflect market value or replacement costs.
Experts expect limited changes in property values, although insurance payouts from extreme weather may influence perceptions.
The new valuations are expected to be finalised by May, with the possibility of changes affecting rates from 1 July. Read the article
Potential Easing of Foreign Buyer Ban on High-Value Homes
Speculation is growing that the government may relax the foreign buyer ban on high-value residential properties.
Real estate agents have observed the Overseas Investment Office approving several high-value deals recently.
Revisions to the Active Investor Plus Visa programme are anticipated early this year, potentially allowing investments in residential property.
Some industry experts advocate raising the threshold for foreign purchases to $5 million, citing potential economic benefits.
The National Party had previously proposed a 15% tax on foreign purchases of properties over $2 million but did not implement it due to coalition agreements.
Read the article
Read the article
Luxon calls for more frequent RBNZ OCR meetings.
Prime Minister Christopher Luxon suggests the RBNZ should meet more frequently to make OCR decisions, especially in response to improving business confidence.
Luxon advocates for continued interest rate cuts due to low inflation.
Luxon respects the RBNZ's independence but believes more regular meetings could help stimulate economic growth.
The RBNZ’s next OCR decision is expected to reflect a 0.50% cut, based on steady inflation rates. Read the article
