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QV statistics confirm slowing property market

Monday 12th November 2007

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QV's October statistics report slowing growth in national property values for the second month in a row. QV provides its views of what is happening in each of New Zealand's major urban areas.

The latest figures show values grew 12.7% over the past year; an easing from the 13.2% reported in September.

The average sale price for New Zealand residential properties increased slightly to $406,176.

QV spokesperson Blue Hancock says, "The effect of higher interest rates and lessening buyer confidence is now reflected in a general slowdown in market activity and a shift from a sellers market towards a buyers market. Recent market indicators confirm that many people do not believe it is the right time to buy.

"Purchasers are being careful and taking a longer time to buy property. Developers and investors are also acting cautiously and seem willing to wait for further market signs to appear. Activity is patchy across a number of regions including the main urban centres. All predictions are for a gradual easing in the market overall, with the pace of any slowdown determined by the spring and summer activity".

All the main urban centres, except Hamilton, reported easing growth in property values. Most of the provincial centres also reported flattening property values. Gisborne’s recent strong growth eased from 21.8% last month to 20.4% . Tauranga dropped to 7.7%, Palmerston North to 12.4%, Nelson to 12.9%, and New Plymouth was flat at 9.8%.

However, some provincial centres continued to increase. Napier’s growth in values leapt to 7.2% from 4.9% reported last month, and Queenstown and Invercargill both continued their strong growth, increasing from 10.8% to 13.7%, and 34.6% to 36.4% respectively.

Compare rental and house price statistics online today at www.Landlords.co.nz.
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