Property statistics confirm market slowdown
13 February 2005
New QV residential property statistics confirm market slowdown
QV’s new monthly property statistics reinforce a market slowdown in some of the previous property hot spots, while other areas of New Zealand are still experiencing strong growth in values.
New Zealand residential properties are estimated to have increased in value by 13.5 % over the year to January 2005. However, for the first time since the current boom began, QV is reporting an actual decline in property value in two areas. Nelson City (-3.1%) and Central Auckland City (-1.8%) are both showing annual declines in value, with two other previous hot spots, Tasman (0.8%), and Queenstown Lakes (1.5%), showing little growth. The decline in property values in Auckland city is reported for the central city area only, with modest growth still occurring in Auckland City’s Eastern (6.3%) and Southern (4.7%) suburbs.
“The trend of the past year is continuing with those areas that peaked first through the market boom slowing significantly, to the extent that we’re even seeing some decline in property value in two areas,” says Blue Hancock of QV Valuations. “However, many regions in New Zealand that were late to experience the boom times are still seeing good growth in property values,” said Mr Hancock.
“If this trend continues, we expect the areas which were initially slow to follow the cycle upward will begin to also slow down,” Mr Hancock said.
The new property statistics released by QV will now be released every month and include the latest sales received and compiled by QV up until the end of the previous month. For the first time, QV is providing the statistics for more defined areas within New Zealand’s largest cities. The property statistics measure a range of types of residential property, including houses, flats and apartments, Mr Hancock said.