NZ property values extend gains in May QV

Tuesday 12th June 2012

The pace of annual gains in the value of houses accelerated in May, after relatively steady values over the past few months, according to government valuer Quotable Value.

National property values are up 1 percent in the three months ended May 31 and have risen 3.9 percent over the past year, to be 2 percent below the market peak in 2007.

"Sales activity has remained relatively strong for the past couple of months, with no evidence yet of the usual decline in sales seen over winter," Jonno Ingerson, research director said in a statement. "The relatively low number of new listening and sales over the past few years are leading to an increase in pent-up demand."

"There are now buyers who have been looking for a house for some time and either cannot find something that meets their needs, or are being out-bid by other keen buyers."

New Zealand's property market has been on the up this year after stalling through 2011 when potential buyers shied away from taking on too much debt to fund a purchase and sellers were unwilling to accept losses from a cheaper price.

Ingerson said, Auckland's property market is now "leading the way" with most of the main cities and towns increasing their values in May.

Values in Auckland rose 1.4 percent in the three months ended May 31, compared with 0.6 percent in the three months ended April 30. Values are up 5.7 percent on an annual basis.

"Confidence is spreading out of the centre, with increasing values seen in pockets of the wider market," said Glenda Whitehead, valuer. "Much of the gains seen in the wider areas again appear to be driven by demand out-stripping listening levels."

Wellington values which had been steadily increasing since August last year, began to slide again. Values fell 0.3 percent in the three month period with an average sale price of $507,090.

The average sale price in Christchurch was $379,501 over the three-month period, and values are up 5.4 percent over the past year.

Earlier today the Real Estate Institute of New Zealand released figures showing house prices and sales across the country rose in May on the continued strength of Auckland and Canterbury.

The number of sales rose 24 percent to 7,175 in May compared to the same month a year ago, and was up from 5,676 in April, REINZ said in a statement. The national median sale price rose 5.4 percent to $369,000, and was up $4,000 from a month earlier.

BusinessDesk.co.nz

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