March QV house price stats
Signs that main centres may be slowing
The latest monthly property value index shows that nationwide residential values increased further in March. Values are up 3.3% above the previous market peak of late 2007, with a 1.3% increase over the past three months and a 6.5% increase over the past year.
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Jonno Ingerson, QV.co.nz Research Director said “nationwide values are still increasing although there are signs that the rate of increase has slowed in the last month or two in Auckland, Hamilton, Christchurch and Dunedin. However it is still too early to tell if this is the start of a more widespread slowing of values”.
“The provincial centres remain variable with no universal trends evident either over the past three months or the past year” said Ingerson.
“The number of properties on the market remains limited, particularly in Auckland. This has constrained the number of sales at a time when buyers have generally shown more confidence and have been keen to purchase” said Ingerson.
Values across Auckland are still increasing and are now up 11.0% over the past year. Areas like Rodney and old Auckland City continue to show slower rates of growth over the past 3 months than what has previously been seen and in comparison to other areas. Overall, values are still markedly above last year, with North Shore seeing the greatest increase at 11.6%.
QV Operations Manager Kerry Stewart said “We have seen a continued lack of listings, and this has worsened over the past month as people start to hold onto their properties more, especially in the wake of the release of the draft unitary plan. Many buyers are also starting to feel that house prices are unreasonable and are waiting it out to see if houses become more affordable.”
“Auctions are still popular especially in the inner city where the market remains heated. In general the right properties will still go at the right price,” said Stewart.
Outside of Auckland, the main cities are continuing to increase, although some at a greater rate than others. Hamilton has grown slightly with a 1.3% change over the past 3 months; however it is still sitting at 4.6% up on last year.
Tauranga continues to fluctuate, although within a narrow range. It is 0.8% up over the past 3 months, meaning only a 0.3% increase on this time last year.
Values in the Wellington area have continued to steadily
increase since November after being relatively steady for
most of 2012. Values there are now 2.1% above this time last
QV Valuer Pieter Geill said “although busy, the market has been relatively unpredictable with houses that were expected to sell quickly sticking around for longer. Houses priced too high, or perceived as quirky or in need of renovation appear to be putting younger buyers off”.
“Houses around the $300,000 mark are selling quickly in the Hutt Valley, with many buyers tapping into the KiwiSaver first home deposit subsidy, which in the Hutt Valley is capped at house and land packages valued at $300,000. In Wellington City there has been good activity around properties in the $1-1.3 million bracket as well as entry level homes around $450,000. The apartment market is slow at present” said Pieter Geill.
Christchurch values remains significantly above last year with a 7.8% increase. The outlying areas such as Waimakariri and Selwyn continue to hold their value although the increase in value in recent months has been slower than what we have seen previously.
QV Valuer Daryl Taggart said “values in Christchurch have again stayed strong compared to last year with the demand for housing. The market is still quite strategic with vendors not wanting to show their hand too much if they can help it. The outlying areas appear to be not selling like they used to but could see slight lifts again in the future.”
Dunedin has seen a 1.7% increase over the past 3 months, leaving it 4.4% up on last year.
The main provincial centres are still experiencing increases in values, albeit at different rates around the country. Some areas where values have previously been faltering, such as Rotorua (up 0.5% over the past 3 months) and Gisborne (up 1.9% over the past 3 months) have also seen a turn around and are now experiencing increases. Whangarei continues to buck the trend, with a 0.9% decrease over the past 3 months.
For further specific comment on local
Auckland. Kerry Stewart 021 387 106
Hamilton. Richard Allen 027 230 7290
Tauranga. Paul Thomas 027 544 4602
Wellington. Pieter Geill 027 230 7291
Christchurch. Daryl Taggart 027 304 9815
Dunedin. Tim Gibson 021 151 2887
|PropertyIQ Value Index - Residential Property|
|Time period: as at March 2013|
|Territorial authority||Average current value||12 month change%||3 month change %||Since 2007 market peak change %|
|Auckland - Rodney||590,180||8.0%||1.6%||-0.3%|
|#A||Auckland - North Shore||720,434||11.6%||2.4%||12.3%|
|Coastal North Shore||826,775||11.0%||2.4%||9.7%|
|North Shore Onewa||571,956||12.4%||1.7%||15.3%|
|#A||Auckland - Waitakere||465,999||10.8%||2.7%||9.4%|
|#A||Auckland - City||726,601||11.2%||1.6%||16.5%|
|Auckland City (Central)||659,888||12.2%||1.9%||15.9%|
|Auckland City (East)||901,350||9.7%||1.8%||13.1%|
|Auckland City (South)||643,464||12.6%||1.5%||19.5%|
|#A||Auckland - Manukau||505,501||10.5%||2.2%||10.0%|
|Manukau North West||409,610||11.0%||2.2%||10.9%|
|#A||Auckland - Papakura||371,732||7.5%||3.1%||3.4%|
|Auckland - Franklin||402,992||5.1%||0.3%||-0.6%|
|Hamilton North East||424,496||4.1%||0.6%||-5.6%|
|Central City/North West||324,172||3.0%||1.2%||-9.4%|
|Hamilton South East||323,205||4.8%||2.1%||-7.5%|
|Hamilton South West||310,399||4.1%||1.3%||-9.3%|
|Central Hawkes Bay||213,914||0.5%||2.0%||-20.2%|
|Wellington City & Southern Suburbs||530,040||1.4%||1.4%||-5.4%|
|Central City and North||476,050||8.3%||2.2%||7.5%|
|#||Main Urban Areas||491,124||8.0%||1.7%||7.1%|
Notes on the above data:
|1. The information included in the above table is based on the monthly property value index. This index is calculated based on the sales data entered into PropertyIQ's system in the previous 3 month period. For example, information for the period ending June will be calculated based on sales entered between April 1 and June 30.|
|2. The average current value is the average (mean) value of all developed residential properties in the area based on the latest index. It is not an average or median sales price, as both of those only measure what happens to have sold in the period.|
|3. The percentage change over three months, twelve months and since the 2007 market peak are based on the change in the property value index between that time and the current.|
|4. Any of the statistical data shown in italics are calculated based on a sample set of data that is less than the recommended minimum. These results should be used with caution. Those showing N/A had too few sales to generate an index|