Monday 13th June 2005
Residential Property Values Still on the Rise
Statistics released today by QV indicate the residential property market is remaining buoyant, with residential properties growing in value by 13.5% for the year ended May, up from 12.5% annual growth to April.
“Even though sales volumes have been down over late summer and early autumn, the prices buyers are paying for residential properties have continued to increase across most areas of the country”, says QV’s Blue Hancock.
Dunedin City once again led the main centres with property values increasing 22.9%, followed by Hamilton City (21.2%), Christchurch City (18.5%), and Wellington City (8.2%). Although annual growth in Auckland City property values was comparatively low at 5.8%, this growth rate was up on figures reported last month.
The increase in property values has also remained strong in the provincial cities, with New Plymouth (33.4%), Gisborne (29%), Hastings (21.3%), and Palmerston North (18.1%) leading the way.
“As reported previously, the provincial centres that were initially slow to follow the cycle upward have been showing good growth in property values, and at higher levels than the major cities”, Mr Hancock said.
Although residential property values have been on the rise in the past few months, Mr Hancock still expects there to be some slowing over the winter period. “Winter tends to be a slower time for the property market, however the current range of competitive fixed term interest rates may keep the market active for a while yet.”
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