Nationwide property values steady, slide continues in Wellington

Nationwide, QV reported property values have stabilised over the past month and are 0.4% below this time last year and 5.2% below the market peak of 2007.

"Over the past three months values have increased in many parts of the country, with particular strength in the Canterbury region and parts of Auckland," said QV research director Jonno Ingerson.

"Across the wider Auckland area values have increased 2.4% since January, and as a result are now 1.9% above last year and only 0.6% below the previous market peak of late 2007."

Ingerson said the growth over the past few months was not evenly spread across the Supercity, with the old Auckland City seeing the most growth in values, with modest increases in Rodney, North Shore and Waitakere while Manukau, Papakura and Franklin "have stayed more or less stable."

In the capital however, the picture is of falling values.

"Wellington remains the only main centre where values continue to decline in recent months, dropping 1.8% since January and now sitting 2.7% lower than the same time last year" Ingerson said, citing possible public sector restructuring as a dampening factor for the property market.

Values in Hamilton, Tauranga and Dunedin have been relatively stable over the last six months, although declines in the six months prior to that mean in all three areas values remain below the same time last year.

In Christchurch, values have been volatile since the first earthquake in September, first rising, then dropping prior to the February quake, then increasing.

"Over the past three months values across Christchurch have grown 1.1%, and are now 0.5% above the same time last year. The increase in recent months is due to increased demand for properties in undamaged areas particularly in the west and north of the city," Ingerson said.

Displaced Christchurch residents have also helped push values up across the rest of the Canterbury region.

"Values Ashburton have grown the most at 4% over the past three months. Waimakariri District immediately north of Christchurch has increased 2.9% and Selwyn District immediately to the west has increased 2.1%."

QV reported that provincial centres have seen some variability in values over recent months, with some falling, others rising and some staying flat, though in values most provincial towns remain below the same time last year.

Wanganui is the furthest below last year, down 6.8%, followed by Gisborne (-4.6%), Invercargill (-4%), Rotorua (-2.9%), Whangarei (-2.7%), New Plymouth (-2.6%), Napier (-1.5%), Hastings (-1%) and Palmerston North (-1%).

Nelson values remain at the same level as a year ago and Queenstown Lakes values are 1.5% above last year.