Monday 8th May 2006
Growth In Property Values Ease
April property statistics released by QV today indicate that nationally, residential property values increased by 13.1% over the past twelve months. This is down from the 14.8% reported in March.
“The decrease in the growth rate of the Residential Price Movement reflects a cooling off of the property market in many areas. The most recent activity over the past 2-3 months indicates that prices are beginning to level off, in comparison with the same period in 2005. We expect to see the annual growth in values continue to flatten over the coming months” says QV spokesperson Blue Hancock.
“Although the national trend is for flattening residential property values, due to a fall in demand pressures, there are still areas where demand remains strong, notably the more affordable areas in our urban centres” said QV spokesperson Blue Hancock.
This months annual figures show the main centres have seen slight falls in the growth rate, with Hamilton growth rates down from 25.1% to 23.9%, Christchurch now 13.8%, Wellington 12.0% and Auckland 8.9%. Dunedin property values remained stable this month at 10.4%, the same level of growth that was reported for the period ending March 2006.
Of the major provincial cities Gisborne 31.2%, Whangarei 25.8%, New Plymouth 13.3% and Invercargill 11.9% reported decreases in growth. Taupo 7.9% and Masterton 21.1% reported slight increases in growth from the 7.8% and 19.1% reported respectively for the twelve months ending March.
Main Urban Areas Commentary:
Auckland:
Auckland City property values have shown growth of 8.9% over the past 12 months, down from the 9.4% growth reported in March. The average sale price was $517,054 up from the $510,117 reported in March.
“Although our statistics are showing annual growth of 8.9% across Auckland City, the most recent market activity shows prices are levelling off, but remain in positive territory. We expect Auckland property values to continue to flatten over the coming months” said Glenda Whitehead of QV Valuations.
Waitakere property continues its’ steady growth, with a reported annualised rise of 11.6%. “All other cities in the region continue to have good activity at the lower end of their markets. Valuers are now reporting greater buyer caution, and that vendors need to be realistic in order to achieve sales of properties in the mid to upper price ranges for those cities. Specialist type and waterfront properties, that attract the discretionary dollar, continue to be in demand and in many cases attract premium prices” said Glenda Whitehead of QV Valuations.
Hamilton:
Hamilton residential property values increased by 23.9% over the past 12 months, this was down from 25.1% growth reported to March. The average sales price was $315,883 down on the $316,138 reported for the period ending March.
“Although Hamilton’s growth has been slowing over the past few months, this is the first sign of Hamilton’s average sales price decreasing” says Richard Allen of QV Valuations.
Hamilton suburbs all showed a decrease in growth rate this month with Hamilton South-West being the most affected reporting 27.6% growth down from 30.1%.
Wellington:
Wellington City’s property values have shown growth of 12.0% over the past year, down on the 12.6% reported in February. The average sales price in Wellington City was $426,063 down slightly on $427,960 reported in March.
“The Wellington market appears to be at its peak as indications are that the high level of price increases is starting to ease. Conditions are still very buoyant with a much higher than average number of sales taking place and properties are selling much faster than normal. The indication is that this will ease slowly” says Max Meyers of QV Valuations.
Other Wellington cities that showed strong growth were Upper Hutt with growth of 19.9%; Lower Hutt 15.1% and Porirua growth of 15.0% over the past 12 months.
Christchurch:
Christchurch property values grew 13.8% over the past 12 months, down on the 15.9% reported in March. The average sales price for the city was $317,944, down from $320,549 reported in March.
“Overall market sentiment is that prices are beginning to stabilise, the growth rate and average sales prices are levelling out, the growth rate is the lowest it has been in a year. Purchasers in the market are using their improved position to negotiate strongly on price” said Mark Dow of QV Valuations.
Dunedin:
Dunedin residential property values have grown by 10.4% over the past 12 months, equal with the 10.4% reported for the year ending March 2006. The average house price of $242,050 decreased slightly from $250,293 reported in the year ended March 2006.
“The Dunedin market hasn’t really changed significantly from last month and the figures reflect that. There has been a drop in the average sale price which is more a reflection of a lack of sales in the higher price bracket compared with previous periods than a drop off in values. The lack of sales in the higher price bracket may reflect reluctance on the part of the vendors to meet the market price.” says David Paterson of QV Valuations.
View FAQs about the Property ValueMap >