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NZ property values extend gains in June QV

Tuesday 10th July 2012

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New Zealand property values extended their gains last month as homes in Auckland and Christchurch continued to appreciate amid a shortage of supply, according to government valuer Quotable Value.

National property values rose 1.8 percent in the three months ended June 30 and have increased 4.2 percent over the past year, to be 1.3 percent off the market peak in 2007. That's a faster pace than the 1 percent gain in the three months ended in May.

"The fastest increasing areas are Auckland and Christchurch - there is more variability in the provincial centres and smaller New Zealand property values extended their gains last month as homes in Auckland and Christchurch continued to appreciate amid a shortage of supply, according to government valuer Quotable Value.

National property values rose 1.8 percent in the three months ended June 30 and have increased 4.2 percent over the past year, to be 1.3 percent off the market peak in 2007. That's a faster pace than the 1 percent gain in the three months ended in May.

"The fastest increasing areas are Auckland and Christchurch - there is more variability in the provincial centres and smaller towns across the country, as values in those areas respond to local economic influences," research director Jonno Ingerson said in a statement.

"Sales activity has been significantly higher in the last few months than it has been for several years, with Auckland again stronger than most other areas."

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 purchases and sellers were unwilling to accept losses from a cheaper price.

"Despite the number of sales being up on recent years, and values increasing, we are not experiencing a boom," Ingerson said. "Even in Auckland the rapid increase in values over the past few months is less than the rate seen in the boom years."

The average sale price in Auckland was $550,035 in the three months ended June 30, with values up an annual 5.9 percent. Values in Christchurch rose an annual 5.8 percent and the average sale price over the rolling three-month period was $382,925.

Dunedin's average sale price was $279,163, while values rose an annual 2.8 percent. Wellington values have increased at an annual 1.4 percent pace, with an average sale price of $511,317 in the past three months.

"Values have been flat or decreased slightly in the past few months in the cities across the Wellington area, as concern around public service restructuring continues to dampen confidence," valuer Glenda Whitehead said.

Earlier today the Real Estate Institute of New Zealand released figures showing the number of house sales rose last month and the median sale price reached a record-high on the continued strength of the Auckland and Christchurch property markets.

The number of sales rose 17 percent to 6,135 in June, compared to the same month a year ago. The national median sale price rose 3.3 percent to $372,000, which is $2,000 above the previous record set in March.

BusinessDesk.co.nz



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