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Spring buyers keen but supply tight

Media release
8th November
Spring buyers keen but supply tight

The latest monthly property value index shows that nationwide residential values continued to climb in October. Values are up 1.9% over the past three months and 5.7% over the past year. As a result, values are now 1.1% above the previous market peak of late 2007.

Jonno Ingerson, QV.co.nz Research Director said “there has been a late spring surge in activity with both buyer enquiry and the number of sales having risen. However, a lack of listings is constraining the market, particularly in the majority of the main centres.”

“Although the nationwide increase in values is largely being driven by Auckland and Canterbury, there are some signs that other main centres and provincial cities are increasing in value also” said Jonno Ingerson.

“Property investors and first home buyers remain active in the market, encouraged by low interest rates” said Jonno Ingerson.

Auckland
Values in the wider Auckland area have risen 3.3% over the past three months and 9.2% over the past year.

Old Auckland City continues to have the steepest increase over the past 12 months, up 10.7%, with North Shore and Manukau close behind, up 8.9% and 8.1% respectively.

Values in the wider Auckland area are now 9.1% above the previous market peak in 2007, led by old Auckland City which is 12.5% above that mark.

QV Operations Manager Kerry Stewart said “There is growing demand for more listings throughout Auckland. Good properties are still attracting numerous interested buyers, with auctions especially proving successful for many, with multiple bidders not uncommon.”

“Investors are also coming back into the market, most looking to on sell relatively quickly as they try to capitalise on the quick growth in the current market” said Kerry Stewart.

Hamilton and Tauranga
Values in Hamilton are generally still rising with a 3.1% increase on last year and 0.5% increase over the past three months.

QV Valuer Nicky Harris said “Hamilton is still trending positively with multiple offers and auctions prominent at the moment. Lately we have seen more out of town buyers as well as the lower valued $300,000 - $350,000 properties proving popular amongst first home buyers.”

“North eastern areas are seeing more new developments with a demand for vacant sections. This is pushing prices up and we are seeing a lot of listings as a result” said Nicky Harris.

Property values in Tauranga have been up and down over the past six months, but the most recent months have seen a slight increase to leave values 2.2% up on last year.

Wellington
Values in the Wellington area increased for the second month in a row after being stable for the previous six months and as a result are now 2.4% up over the past year.

QV Valuer Kerry Buckeridge said “A late spring rush has seen a number of properties which have sat over winter finding buyers in recent weeks. There is good interest in the southern and eastern suburbs as well as increased listings within the top end of the market. However, although more highly priced properties are coming onto the market, few sales are actually eventuating. Generally the increased interest is not translating to increased values.”

“Apartment living is still being affected with a wide variance in Body Corporate levies between various apartment blocks becoming apparent. This is being driven mainly by insurance costs, especially with some buildings built on reclaimed land or having low earthquake ratings seeing higher premiums” said Kerry Buckeridge.

Christchurch
Christchurch values continue to rise with the past 12 months seeing a 5.9% increase, and the past three months a 1.8% rise. Christchurch now sits 3.8% above the 2007 peak.

QV Valuer Daryl Taggart said “Auction is still proving a successful selling option in Christchurch with competition strong and properties in the $300,000 - $400,000 range achieving good results. A number of larger new developments have been selling well with steady demand expected to continue. Eastern and hill suburbs remain flat as expected with Selwyn and Waimakariri continuing to attract a lot of activity.”

Dunedin
Values in Dunedin also continue to rise, now 4.5% up over the past year and 1.4% up over the past three months.

QV Valuer Tim Gibson said “Mid valued properties in sought after locations are receiving good interest at open homes lately with quick sales occurring and not much evidence of lowered pricing. Lower valued properties are also seeing few properties going at discounted prices. However, properties that are dated or that are different to buyers expectations are taking much longer to sell and quite often at lower prices.”

Provincial centres
All the main provincial centres have increased in value over the past three months, with the exception of Wanganui and Invercargill which are slightly down, and Whangarei which is down 1.3%. However over the past month only Invercargill has continued to drop with the other two areas rebounding slightly.

Full release with graphs: QV_release__October_2012.docx
Charts: QVResidentialpricemovement2012October.xls

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