Monday 14 March 2005
Property market continues to cool
The annual growth in residential property values has shown gradual decline across most areas of New Zealand, as indicated by QV’s monthly property statistics released today. However, the overall New Zealand figure remained steady at 13.5% for the year ended February 2005, as some areas continued to show increases in property value growth.
While New Plymouth (32.6%), Dunedin (27.8%), Tauranga (24.3%) and Christchurch (18.7%) recorded impressive annual value growth, the February figures show these cities have experienced a slowdown when compared to their annual growth rates reported in January 2005.
“There’s still good growth in property values in the regional centres in New Zealand, but the annual change continues to point to a gradual softening in the market,” says Blue Hancock of QV Valuations.
Nelson (-4.3% annual change) continued its trend of declining residential property values, while Tasman (-1.4%) also recorded a decline in values for the first time.
“The declines in Nelson and Tasman are consistent with the trend of areas that peaked first in the market slowing significantly and, in some cases, declining,” Mr Hancock said.
The new property statistics released by QV are now released every month and include the latest sales received and compiled by QV up until the end of the previous month. The property statistics use a residential index methodology, which compares the sales price of each property sold to its capital value.
“An index methodology provides a more accurate measure of property value change by reducing the impact of fluctuations caused by changes in demand in different property sectors,” Mr Hancock said.
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