Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


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

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news