Monday 12th June 2006
Residential Property Values Grow 12.4%
QV’s May property statistics released indicate that nationally, residential property values increased by 12.4% over the past twelve months. This is down from the 13.1% reported in April. The average New Zealand sale price was $327,779.
“The current market trend is showing a flattening of property values; it is the fourth consecutive month that a decrease in growth has been reported. Growth is back at the levels reported in May 2005. The most recent market activity suggests there is no longer the urgent pressure on buyers and prices are stabilising. This trend is expected to continue throughout the winter months” said QV spokesperson Blue Hancock.
The main centres have again seen slight decreases in the growth rate, with Auckland growth rates down from 8.9% to 7.6%, Hamilton down to 21.5%, Christchurch 12.7%, and Dunedin 8.2%. Wellington residential property values remained stable this month at 11.8%.
Of the major provincial cities decreases in growth were reported for Gisborne 28.7%, Whangarei 24.3% and New Plymouth 11.0%. Invercargill reported strong growth of 15.5% up from 11.9% growth reported for the period ending April 2006. Masterton residential property values remained stable with 21.9% growth.
Main Urban Areas Commentary:
Auckland:
Auckland City property values have shown growth of 7.6% over the past 12 months, down from the 8.9% growth reported in April. The average sale price was $517,455.
Across all Auckland metropolitan areas reduced growth levels are showing compared to those reported last year. In May 2005 the annual growth levels ranged from 8.6% in North Shore, 8.7% Auckland through to 14.1% and 15.8% in Rodney and Papakura. Franklin was considered an outlier at 23%; a later starter with ground to make up. A year on the range has tightened with Auckland’s annual growth rate now at 7.6%, Rodney at 8.7%, North Shore 9.6%, Manukau at 14.1%, with Franklin still performing well, but now down to 16.9%.
“Six months ago we saw growth rates easing off, but average house prices were still increasing. This reflected the push from the lower end of the property market. We are now also seeing average house prices easing marginally, reflecting that the easing in growth rates is now across the board” said Glenda Whitehead of QV Valuations.
“Vendors who are realistic in their pricing are achieving sales within a marketing period of four to twelve weeks. Marketing periods are now extending in some areas, as buyers are now being more discerning than they have been in the recent past. In general the market has lost some of its buyer urgency, but there are no signs of oversupply in the market” said Glenda Whitehead.
Hamilton:
Hamilton residential property values increased by 21.5% over the past 12 months, this was down from 23.9% growth reported to April. The average sales price for Hamilton City was $316,835.
“Although again this month Hamilton residential properties have seen a slight decrease in the growth rate the average sale price has increased to the highest point yet up $952 on the $315,883 reported for the year ended April 2006” says Richard Allen of QV Valuations.
Wellington:
Wellington City’s property values have shown growth of 11.8% over the past year, down marginally on the 12.0% reported in April. The average sales price in Wellington City was $429,432.
“The Hutt Valley is experiencing strong growth in property values, particularly Upper Hutt at over 20.0% growth. Most other parts of Wellington are following the national trend of slowing growth rates” says Max Meyers of QV Valuations.
“The Wellington market remains strong with a higher than average level of sales activity and fast selling times. However anecdotal evidence suggests that the pressure from buyers is easing. This trend is expected to become more evident particularly in the latter part of the year” says Max Meyers.
Christchurch:
Christchurch property values grew 12.7% over the past 12 months, down on the 13.8% reported in April. The average sales price for the city was $313,388.
“Although property values are 12.0% higher than this time last year, the fact the average sale price for Christchurch City has declined for the second consecutive month and the average length of time to sell appears to be lengthening, suggests increases in value in coming months is unlikely. Although the average sale price has been decreasing for residential properties vacant land prices are continuing to hold up well” said Mark Dow of QV Valuations.
Dunedin:
Dunedin residential property values have grown by 8.2% over the past 12 months, down from the 10.4% increase reported for the year ending April 2006. The average sale price was $245,908.
“The figures for Dunedin City show a steady slowdown in the growth of property values over the last twelve months. This reduction is consistent across most areas of the city. These results are pretty much as predicted, reflecting the impact of rising interest rates and the general economic outlook over the medium term” says David Paterson of QV Valuations.
View FAQs about the Property ValueMap >