Property prices in Auckland’s less-favoured suburbs catching up

Property prices in Auckland's less-favoured suburbs are catching up as home-buyers are looking at properties in less expensive suburbs in a bid to get on the property ladder.

Experts say the city is seeing a "spill-over effect" and the loan-to-value ratio (LVR) caps introduced last year are driving demand for homes in suburbs not traditionally sought-after. “People who still wanted to buy houses and didn't have large deposits would have to go to suburbs where the properties were favourably priced," said NZ Institute for Economic Research principal economist Shamubeel Eaqub.

Property prices in Auckland’s less-favoured suburbs are catching up as home-buyers are looking at properties in less expensive suburbs in a bid to get on the property ladder.

Experts say the city is seeing a “spill-over effect” and the loan-to-value ratio (LVR) caps introduced last year are driving demand for homes in suburbs not traditionally sought-after. “People who still wanted to buy houses and didn’t have large deposits would have to go to suburbs where the properties were favourably priced,” said NZ Institute for Economic Research principal economist Shamubeel Eaqub.

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest