NZ property value growth slowed in March, but Auckland may be picking up, QV says

Wednesday 6th April 2016

New Zealand property value growth continued to slow in March, although the trend may be coming to an end, according to state-owned valuer QV.

The average value of a New Zealand home rose at an 11.4 percent annual rate in March to $559,492, slowing from February's 11.6 percent pace and January's 12.6 percent rate, QV said. Values were up 0.2 percent in the three months through March, ahead of the 0.1 percent pace in the three months through February.

Property values in Auckland rose an annual 16.9 percent rate to $931,061. Auckland property values have been stoked by a shortage of supply as the country's largest city contends with a rapid increase in population. Increased regulation has slowed the growth, with values slipping 0.2 percent over the three months through March compared with a 0.7 percent decline over the three months through February.

"Home values have risen in most parts of New Zealand in the first quarter of 2016 with the exception of the Auckland region where values have been on a slight downward trend over the past three months,” said QV spokesperson Andrea Rush. “However, over the past few weeks activity and demand have begun to pick up again across the 'super city' and values have actually risen again over the past month by 0.6 percent, so it appears the downward trend may be coming to an end.”

Values in Hamilton rose at a 23.3 percent annual rate to $460,725 and were up 3.7 percent over the past three months. In Tauranga, values were up 22.6 percent over the year to $571,872, having gained 5.5 percent over the first quarter.

Wellington region values increased an annual 7.5 percent to $491,236 and were up 3.1 percent in the first quarter. Napier annual values rose 9.1 percent to $358,732 over the year and were up 4.3 percent in the quarter, while Hastings advanced an annual 9.6 percent to $331,149, for a quarterly gain of 2.6 percent.

Christchurch city values rose at a 2.9 percent annual pace to $485,700 and were up 0.8 percent over the quarter, while Dunedin increased 8.1 percent to $315,185 over the year, and was up 2 percent over the quarter. Nelson values gained 8.9 percent to $446,860 on an annual basis and were up 4.3 percent for the quarter.

Many provincial centres are experiencing the fastest rate of home value growth since before the previous peak of 2007 including Whangarei, Napier, Rotorua, Taupo, Carterton in the Wairarapa, as well as the Central Otago and Queenstown Lakes Districts, said QV's Rush.

Regional areas within commuting distance to Auckland, Tauranga and Hamilton also continued to show significant value rises including towns located in the Waikato, Waipa, Hauraki, Western Bay of Plenty and Kaipara Districts,” she said. “The only areas to see a drop in home values over the first quarter of the year in the North Island apart from parts of Auckland were Otorohanga, Wairoa, South Taranaki and in the South Island, the West Coast districts of Buller and Westland as well as Ashburton and the Christchurch Hills suburbs.”

(BusinessDesk)

BusinessDesk.co.nz

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