Mixed bag in house price growth

QV says that in the year to August 30, national property values increased 10.5%, however this is lower than the 11.1% growth rate recorded in the year ending July 31.
QV says the average sale price in the latest period was $340,473.

It says there are differing trends across the main urban areas, with the Auckland City growth rate stable at 7.6% (7.5% in July), and Dunedin growing at 6.2% (up from the 5.8% reported in July). However, the other main centres all saw growth rates slow with Hamilton at 16.2% (down from 17.5%), Wellington City 9.5% (down from 9.9%), and Christchurch growing 9.4% (down from 10.4%).

“Across the country, there is a gradual easing in the property market. Prices and hence property values are still higher year on year, with no signs of any dramatic falls, but conversely the demand that was pushing values up faster and faster over the past 3 years has definitely eased back”, QV spokesperson Glenda Whitehead.

Signs of slowing rates of property growth were also reported in provincial cities: Gisborne 18.2%, Palmerston North 15.8%, Invercargill 11.2%, Napier 6.2%, and Nelson 2.4%.

“With 24.9% annual growth, Rotorua is the only provincial centre to still be growing at in excess of 20%. It was a late starter in this cycle and still in catch-up mode. Several other smaller centres are also growing at rates over 20%. These all tend to be in lower value localities,” Whitehead says.

For more details on what's happening in the major urban areas click here