New Zealand house prices rose for the third month in July, signalling the property market is recovering and might help the economy emerge from a recession.
Prices rose 0.7 per cent from June and have gained 1.3 per cent from a low in April, according to the government’s valuations agency.
House prices slumped 9 per cent in the year to March but rising consumer confidence, housing demand and immigration are helping New Zealand recover.
According to the QBE LMI New Zealand Residential Property Overview released today, prices in the housing market could grow by as much as 11 per cent nationally over the coming year.
The report said that low interest rates, combined with a shortage of new housing will drive up house prices by 24 per cent over the next three years.
The report also showed a strong lift in house sales volumes, up 41 per cent over the June quarter compared to a year earlier.