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New Zealand home price growth slows in March

Published on Apr 7, 2014 10:31 AM
 
There were signs that activity was slowing in the biggest city Auckland, which had been driving national figures. -- FILE PHOTO: AFP

WELLINGTON (Reuters) - New Zealand house price growth slowed for a fourth consecutive month in March, as lending restrictions and rising interest rates weighed on the market, the government property valuer said on Monday.

Quotable Value's (QV) residential property index rose 8.8 per cent in the year to March 31, compared with a 9.3 per cent annual rate in February.

The index is now 12.6 per cent above the market's previous peak in late 2007, with signs that activity was slowing in the biggest city Auckland, which had been driving national figures.

"The LVR speed limits and the Reserve Bank signalling further interest rate hikes is likely to be contributing to a levelling off in the growth of property values in Auckland and for the first time in more than two years we are seeing a decrease in some areas of that market," said QV spokeswoman Andrea Rush.

 
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