Auckland's house prices pick up again: QV

Monday 11 June 2007

What's happening to house prices in the main urban areas including Auckland, Hamilton, Tauranga, Wellington, Christchurch and Dunedin.

Auckland
Property values in the Auckland region increased by 9.5% over the past year (calculated over the three months ending May 2007 in comparison to the same period last year), up from 8.2% reported last month. The average sale price for the region was $484,739.

“Rodney’s rate of annual value growth slipped marginally on that reported last month (from 12.1% to 11.7%), but the average price continued on the upwards march to $505,390. North Shore’s year on year growth leapt to 11.6% this month with the average sale price rising to $554,975” said Glenda Whitehead of QV Valuations. “Our valuers report that sale prices of quality properties within the premier suburbs of Central Takapuna, Milford and Devonport are exceeding expectations, especially for properties that are being auctioned. Within the mid-range suburbs, the market appears relatively stable. Investor style properties now seem to be sitting on the market longer, possibly due to the low returns these now offer”.

Waitakere City continues its steady growth, up from 9.1% reported last month to 10.3% this month. The average sale price rose marginally to $394,438.

“Auckland City has also shown relatively strong growth, with an overall increase of 7.5%. However, this masks quite different patterns across the city. The central area from Pt Chevalier through to and inclusive of the CBD apartment market grew by just 2.1%, the eastern suburbs inclusive of Epsom, Remuera and the Bays 11.3%, and the more southern area of Avondale through Sandringham to Otahuhu 9.3%” said Whitehead.

“Manukau City’s growth is up from 10.1% to 11.3% with this growth relatively steady across all areas” said Whitehead. “Our valuers report stronger growth within the newly established suburbs such as Dannemora and Flat Bush, and the more traditional investor suburbs such as Otara and Clendon seem less appealing at present. Papakura moved up to 11%, with Franklin easing back to 10.6% from the 12.4% reported last month”.

Hamilton
Hamilton’s property values grew by 11.8% over the past year (calculated over the three months ending May 2007 in comparison to the same period last year).

“QV’s latest statistics show that the demand for residential property across Hamilton City continues to push up property values. Across the four areas we report, increases are very similar, ranging from 10.3% in the South East of the city to 11.8% in the South West” said Richard Allen of QV Valuations.

“The average sale price in Hamilton is still hovering around the $341,000 mark. Expectations are that sales activity will level off as we enter winter and sale prices will remain relatively static” said Richard Allen of QV Valuations.

Tauranga
Property values in Tauranga increased by 6.7% over the past year (calculated over the three months ending May 2007 in comparison to the same period last year), up from 5% reported last month.

“Tauranga continues to see a trend of increasing property values. However, the average sale price in the city remains steady at the $417,100 mark over the past two months” said Christopher Boyd of QV Valuations.

“Recent anecdotal evidence from our valuers suggests that the improvement in sales volumes and buyer confidence experienced in autumn may now have given way to the winter blues. Demand in the mid to lower sectors of the market has dropped off with a noticeable reduction in sales activity” said Christopher Boyd of QV Valuations.

Wellington
Residential property values in the Wellington region grew by 15.1% over the past year (calculated over the three months ending May 2007 in comparison to the same period last year). The average sale price for the region was $423,940.

“Whilst there are some signs of a typical seasonal slow down in the market with lower sales volume and a slightly longer time to sell, property values and sale prices are still growing at a very healthy rate” said Max Meyers of QV Valuations. “Hutt City leads the market with values increasing at 18.4%, up from 17.7% reported in April. Wellington City and the Southern Suburbs report the highest increase of $77,658 in the average sale price over the past year”.

“The residential market in the Wellington region remains buoyant with annual growth recorded at higher levels than the National Average and the Auckland region. Our expectation is that the market will continue to increase in the region” said Max Meyers of QV Valuations.

Christchurch
Property values in Christchurch City increased by 12.4% over the past year (calculated over the three months ending May 2007 in comparison to the same period last year), up from 11.8% reported last month. The city’s average sale price was $349,932.

“May is the fifth consecutive month that the growth in property values has been higher than the previous month. The eastern suburbs within Christchurch have experienced the greatest annual growth at 14.1%. The lower priced properties are currently driving a lot of the activity. Well priced properties and quality homes are still in demand and selling well” said Mark Dow of QV Valuations.

“North Canterbury also experienced a lift in property values with Waimakariri increasing from 7% to 9.6% and Hurunui from 6.8% to 11.2%. South Canterbury generally enjoyed increased annual growth with Timaru recording 12.3% in May” said Mr Dow. “Property value growth in Buller, Grey and Westland all eased slightly this month compared to last month but annual increases are still at healthy levels of 14%, 20.8% and 15.6% respectively”.

Dunedin
Dunedin’s residential property values increased by 8.7% over the past year (calculated over the three months ending May 2007 in comparison to the same period last year), up from 7.6% last month. The average sale price in Dunedin was $265,097, up slightly on the previous month of $262,337.

"Dunedin continues to see positive increases in property values with most areas showing slightly higher growth rates compared to last month. The southern part of the city records the highest growth at 10.3%” said David Paterson of QV Valuations.

“Sales activity remained positive with good buyer interest, especially for the lower to medium priced properties up to $300,000. The strong growth of 10.3% reported in South Dunedin is an indication of this demand” said Mr Paterson.

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