House prices look to be levelling out: QV

Jenny Ruth

Monday 11th July 2005

House price inflation is accelerated further in June, according to the latest Quotable Value figures.

Annual average growth in house prices nationally in the year ended June was 14.2% to $306,200. That's up from the annual 13.5% rise in May, 12.5% in April and 12.1% in March.

"Despite thoughts that the property market is about to enter a slowdown period, we are still seeing increasing levels of growth in property values across most areas of the country, with only Nelson (down 1.3%) experiencing a decline in property values," says QV's Blue Hancock.

QV's figures are prepared on a three months rolling average basis.

Wellington and Auckland house prices grew at significantly lower rates than other cities, up 8.9% and 5.7% respectively, compared with a 23.6% annual increase in Hamilton, a 22.1% rise in Dunedin and an 18.5% rise in Christchurch.

Tasman, where prices had been declining in previous months, saw a turnaround with prices up 2.4% as did Queenstown where prices were up 8.9% in June after annual growth of less than 2% in previous months.

"Although property values remain buoyant, all the indicators are pointing to a levelling out of growth in values rather than a continued increase on the current level of growth we are seeing in the market", Hancock says.

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