KEY POINTS:
New housing figures show interest rates hikes have done little to slow the property boom, with the average sale price in the Auckland region rising by more than $20,000 in the past two months.
Quotable Value statistics released last night showed average property values rose 12.2 per cent nationally over the past year to $378,672.
Spokesman Blue Hancock said the market in main urban areas - including Auckland, Wellington and Hamilton - reported higher growth in property values last month than in May.
It came despite the Reserve Bank raising the official cash rate to a record 8 per cent early last month.
The next official cash rate announcement is due on July 26.
Mr Hancock said anecdotal evidence of a slowdown in property had yet to show in the figures. He said there were fewer listings in many areas and an increasing gap between sellers' asking price and what buyers were prepared to pay.
"The vendors are still wanting that increase over and above, and now the buyers are saying, 'No hang on, we are not sure that the market is going to continue at this rate'," he said.
Speculation that the Government was considering toughening tax rules for landlords was "playing on the mind" of property investors.
Mr Hancock said winter market cooling was not evident last year but had returned this year.
"The market appears to be returning to the traditional pattern of slowdown over the winter months, in contrast to last winter when the market boxed on regardless."
In the Auckland region, property values grew by 11.2 per cent compared to June last year, to an average sale price of $492,857. In Papakura and Franklin, the growth rate slipped to 10.6 per cent and 9.8 per cent respectively.
Auckland property activity was highest for first-home buyers and at the top end of the market.
Shared home ownership plan for workers
The Government is putting $2 million into a shared home ownership scheme for workers in Queenstown.
Housing Minister Chris Carter says the scheme, being trialled by the Queenstown Lakes Community Housing Trust, is similar to the type of shared equity programme the Government is considering piloting nationwide next year.
"By providing a suspensory loan of $2 million to the trust, the Government is able to help Queenstown tackle its difficulties with housing key workers and also explore how successfully a shared ownership programme works in one of New Zealand's highest-priced housing markets," Mr Carter said.
"This scheme is designed to help committed residents who are fully employed in the district into home ownership."
The Queenstown scheme will involve Housing New Zealand and the trust helping eligible households buy first homes by taking a share in the house at no cost to the household.
The share will typically be about 30 per cent of the purchase price, but could vary between 20 and 40 per cent.
The home buyer will obtain a regular mortgage for the remaining part of the purchase price.
The trust will then operate as direct co-owner and if the property is sold, the trust and Housing New Zealand will take their share.
Profits will be put into more affordable housing in the district.
The total pool available for the pilot will be $4 million and it is expected to get under way within the next three months. Up to 35 households could be helped to buy homes.
Mr Carter said the aim was to provide affordable, entry-level home ownership.
Only home buyers with an annual household income of less than $80,000 will be able to use the scheme and they will not be able to buy homes for much more than $500,000 - the median house price in the district.
Mr Carter said shared ownership was a new concept in New Zealand and it was important to carefully test it.
- NZPA