State sector cuts weigh on Wellington property values

State sector cuts weigh on Wellington property; national values steady: QV

Aug. 8 (BusinessDesk) – Wellington continued to buck the national trend of steady property values as the prospect of state sector cuts weighs on the capital city, according to government valuer, Quotable Value Ltd.

Property values in Wellington have dropped 1.8% over 2011 to date and are 2.7% below July last year, QV said. That’s weaker than the national picture, with property values nationwide down 0.4% on July 2010. Values are 5.2% off the market peak in 2007.

“Wellington remains the only main centre where values continue to decline in recent months,” QV research director Jonno Ingerson said in a statement.

“Possible public sector restructuring remains a dampening factor in the property market.”

The national property market came off the boil in winter after a rebound from two years of tepid sales.

Auckland continued to underpin the increase in national property values, up 1.9% on July last year, and gaining 2.4% this year.

Christchurch is also improving, with values 0.5% above the same month a year ago – before the first of hundreds of earthquakes and aftershocks since mid-September - having grown 1.1% in the past three months.

Compared to July last year, Hamilton values were 1% lower, Tauranga values 1.7% softer and Dunedin property values were 2.9% below 2010.

(BusinessDesk) 12:47:33

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