Nationwide values continue to increase

Media release
14th February 2012
Nationwide values continue to increase

Nationwide residential property values continued to gradually increase according to the latest QV monthly index. Values have risen 1.1% over the past three months and are now 2.7% above the same time last year, and 3.3% below the previous market peak of late 2007.

“While national values are continuing to increase, this is not universal across the country. While the combined main urban areas and combined rural areas have increased over the past few months, the combined provincial areas have begun to slide back again” said QV.co.nz Research Director, Jonno Ingerson.

Ingerson said “there appears to be a little more market activity since the New Year, with signs that decisions made over the holiday break are now being put into action. However potential buyers remain cautious and calculated and are often unwilling to commit quickly”.

“The increase in values in many areas, particularly central Auckland, can in part be attributed to a lack of supply, with a shortage of desirable and well presented properties for sale. When quality properties come up for sale in these areas they are in high demand which is tending to push the price up” said Ingerson.

Auckland
Values in the Auckland area are increasing the fastest of any of the main centres, up 2.1% over the past three months and up 5.1% over the past year. Values are above the previous market peak by 1.9%.

The old Auckland City continues to be the strongest performing area within Auckland, up 2.7% over the last three months, up 7.2% over the year, and is now 4.4% above the previous market peak. North Shore has shown slightly slower value growth but is still up 4.0% over the year and 0.9% above peak. Across the rest of Auckland values are up over the last year by between 2.5% (in Franklin) to 3.2% (in Waitakere) with the exception of Rodney where values have been volatile over the past few years and now sit 1.6% above last year.

Hamilton
Values in Hamilton have once again stabilised in the past few months in what is probably a long-term trend. This follows a slight short-lived recovery in late 2011. Values are now 0.5% above the same time last year and 11.0% below the 2007 market peak.

Tauranga
In general, Tauranga values have been increasing very gradually over the past year, up 1.1% over that period, but remain 10.9% below the 2007 market peak.
QV Valuer Shayne Donovan-Grammer said “Tauranga has started 2012 well with a good level of activity in the market. This is perhaps even a little more than expected but in line with what has happened this time of year in years gone by. While activity has improved though, prices have remained stagnant”.
Wellington
Over the past year, values in the Wellington area first fell a few percent, then recovered most of those losses since mid 2011, leaving current values just 0.4% below the same time last year and 6.2% below the 2007 market peak.

“Despite increased market activity, prices are generally quite static throughout Wellington. Properties in the lower price brackets are meeting the greatest demand although it is still important for all sellers to present their properties well and to price them sensibly” said QV Valuer Kerry Buckeridge.
Christchurch
Values continue to increase in Christchurch, as they have been doing since just after the February 2011 earthquake, and are now 3.7% above the same time last year and just 0.7% below the 2007 market peak. The areas immediately surrounding Christchurch have continued to show strong value growth, with Waimakariri District 10.5% up over the year and 5.2% above the 2007 peak, and Selwyn District 8.7% up over the year and 5.3% above the 2007 peak.

QV Valuer Richard Kolff said “areas like the north west of Christchurch continue to benefit from good demand from purchasers. Open homes are busy and resulting in a multiple offer situations for the vendors. This is particularly the case for houses in under $400,000 with demand being fuelled by a steady stream of payouts to red zone home owners”.
Dunedin
In Dunedin values have been increasing since August 2011 and are now 3.4% up over the past twelve months and 4.2% below the 2007 peak.

QV Valuer Tim Gibson said “the Dunedin property market is seeing increased outside investment due to the affordability of Dunedin values. Buyers are becoming more active and we are seeing some multiple offer scenarios occurring. The lower to mid bracket properties are the most popular with increased demand stimulating the growth shown”.

Provincial centres
While values for the combined Provincial areas have slid back over the past three months, there is variability between areas. Towards the end of 2011 values appeared to be increasing across most provincial centres in line with the main centres. However in the last few months values have begun to drop again in Whangarei, Rotorua, Gisborne and Wanganui. Values have stayed more or less steady in Napier, New Plymouth and Palmerston North over the past three months, and increased over the same period in Hastings and Nelson. Nelson also differs from all the other provincial centres by being only 0.3% below the previous market peak. This is in contrast to 5.7% below peak in New Plymouth through to 17.0% below in Queenstown Lakes, 17.5% below in Whangarei and 22.3% in Gisborne.

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