Monday 16th January 2005

Property values continue to climb

Statistics released today by QV indicate that residential property values are still rising, with New Zealand residential properties growing in value by 15.8% over the 12 months to December, up from 15% annual growth to November.

The national property value growth rate reported by QV to December was the highest for 2005, reflecting that the residential market is continuing to remain upbeat.

“We are still seeing increasing levels of growth in property values across most areas of the country, particularly in regional areas which continue to offer affordable housing and investment options” says QV spokesperson Glenda Whitehead. 

Across the main centres Hamilton (26.9%) continued to display strong growth, and was followed by Christchurch (20.2%), and Wellington (12.9%). Property values were up by 12.2% in Dunedin, while in Auckland City (7.9%) property values increased by their highest reported growth rate in 2005.

The increase in property values also remained strong across the provincial cities, with Whangarei (31.4%), Rotorua (29.3%), Gisborne (26.8%), and New Plymouth (25.6%) leading the way. 

Main Urban Areas Commentary:

Auckland:
Auckland City property values increased 7.9% over the 12 months to December, up from 4% growth to November. Continued strong demand at lower end of the market is reflected in a growth level of 10.7% in the Southern Suburbs, where prices remain the most affordable in Auckland City.       

Property values were up 12.2% in Waitakere, a very similar growth level to that reported in January 2005 (12.1%), which reaffirms reports from valuers that property value growth appears to have stabilised across a number of areas in Waitakere.   

In Manukau (13.9% growth) there is still strong interest from the developer, investor, and first home buyer markets, which is helping sustain the upwards trend in property value growth seen in the area over the past year.

Hamilton:
Property values in Hamilton increased 26.9% over the 12 months to December, while the average sale price ($295,630) edged closer to $300,000.

Property values in all areas of Hamilton increased above 22% annual growth, while South Western suburbs continued to have the highest level of growth (28.6%) and the lowest average sale price ($273,194). Affordability continues to be a key factor in the market remaining buoyant.

Although property values in Hamilton continue to grow in excess of other main centres, growth rates in all areas of Hamilton eased slightly from the figures reported by QV in November.

Wellington:
The Wellington City residential market has continued to go from strength to strength, with property values increasing 12.9% annually to December, the highest level of growth reported for Wellington City in 2005.  

Properties in the Northern Suburbs grew in value by 15.5%, followed by the Eastern Suburbs (12.7%), Central and Southern Suburbs (11.4%), and Western Suburbs (10.2%).

Residential properties in Lower Hutt grew in value by 12.9% with an average price of $284,738, while properties in Upper Hutt were up 16.9% with an average price of $263,746.  

Christchurch:
The residential market in Christchurch is continuing to perform at a steady pace, with property values increasing 20.2% annually to December, with an average sale price of $301,764. Like a number of other main centres, the property value growth level in Christchurch was the highest reported for the area in 2005, which has experienced a steady upward trend in property value growth in 2005.

All areas of the Christchurch market appear to be doing well as values are increasing at similar levels between areas: Christchurch East (21.1%), Central City/Northern areas (20.5%), Southwest (20.2%), and Hills (17.1%). 

Dunedin:
Dunedin City properties increased in value by 12.2% to December, with an average price of $250,239. Although the property value growth rate was close to the national average, the growth rate in Dunedin has consistently eased from 23.2% reported in September 2005.

Southern areas of Dunedin City continue to remain the most buoyant areas of the market, with 14.9% growth and an average price of $238,105, while property value growth in Taieri was close behind on 13.2% with a higher average price of $256,733.

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