NZ house price rise still high, but easing
13 September 2006

The rise in New Zealand house prices ranks seventh in this year's survey of 20 rich countries by The Economist magazine.


The 12.4 per cent rise was down from the 13.7 per cent rise in the magazine's survey last year.

This week's publication shows Denmark posted the biggest rise, 23.6 per cent, compared with a 15.4 per cent rise in 2005.

Japan's 3.9 per cent fall in 2006 left that country bottom of the list, but was an improvement on a 5.4 per cent fall last year.

Prices in Australia were up 6.4 per cent in 2006 compared with a 1.9 per cent rise in 2005, while in Britain the rise was 6.6 per cent compared with 6.1 per cent in 2005.

House price inflation in the United States "has certainly caught a chill" according to The Economist, easing to 10.1 per cent from 14 per cent in 2005.

Apart from the United States, only Spain, Hong Kong and South Africa experienced big slowdowns in house price inflation.

AdvertisementAdvertisementThe German market is starting to awaken after nearly a decade of flat, or falling, prices.

House prices there have actually dropped 1 per cent from 1997 to 2006. That compared with a rise of 315 per cent in South Africa, 244 per cent in Ireland and 184 per cent in Britain.

The rise over the decade in New Zealand was calculated at 94 per cent, while in Australia it was 126 per cent. Worst performer was Hong Kong, where prices fell 44 per cent over the decade, followed by Japan where they dropped 31 per cent.