NZ property value rebound slows down in March: QV

Monday 12th April 2010

New Zealand property values rose 6.1% in the year through March, though the rebound from their trough has continued to slow, according to state-owned property valuer QV Valuations.

The average sales price dropped to $407,133 from $416,074 in February, QV said, in a market that has become more cautious. Spokeswoman Glenda Whitehead said property values have remained flat for the past few months, and buyers no longer have the same sense of urgency they had in the second half of last year.

“Buyers appear to be holding back as concerns linger over job security, bank funding is perceived to be difficult to secure and any tax changes remain unknown,” she said in statement.

“How these factors change over the coming months will determine which way the property market goes. However, we expect values to remain relatively stable rather decline significantly.”

Auckland house sales picked up last month, with Barfoot & Thompson, the city’s largest real estate agency, recording a 48% jump in the number of sales from February.

That came at a time when the property market seemed to be heading for a small slump as banks approved fewer mortgages and demand for new housing eased from last year’s peak.

Whitehead said buyers are being more discerning, with “well-presented and appropriately priced” properties selling well.

In Auckland, property values increased 9.9% in a rolling three-month period ending March 31 from an 8.7% gain in February, while the average sale price dropped to $546,052 from $548,062.

In Wellington, values increased by 6.6% in the rolling three month period, from a 6.7% gain reported in February. The average sale price declined to $458,260 from $468,698.

Christchurch property values rose 6.9%, from the previous month’s 6.9% gain, with the average sale price down to $374,117 from $380,925.

View details of each region at Landlords.co.nz

Businesswire.co.nz

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