Property prices up nationwide, parts of Auckland above 2007 peak
Wednesday 9 November 2011
National property values continued to gradually rise across the country and are above 20007 peak levels in parts of Auckland, according to the QV residential property index for October.
By The Landlord
"Nationwide property values have been gradually increasing since the start of 2011 and as a result are now 1.2% above the same time last year and 4.4% below the market peak of 2007," said QV research director Jonno Ingerson.
He said that while initially the rise in values was being led by Auckland and post-quake Christchurch, "many other areas of the country are now increasing also."
"Auckland Area values have increased 2.7% over the past year and are now only 0.1% below the previous market peak. Within the Auckland Council area values in old Auckland city have increased 3.8% over the past year, and are now 1.6% higher than the previous peak of 2007."
Ingerson said Auckland area values have increased by between 0.2% (Papakura) and 1.6 and 4.6% (Franklin), with Rodney the only place to see a slight decline in values.
Both Hamilton and Tauranga have seen values edge up on last year, 0.7% and 0.5% respectively, but both remain around 12% below the market peak.
Values declined in the first half of the year in the capital, but have started to rise again and are 0.9% below last year and 7.3% below the market peak.
Ingerson said Christchurch had seen values continue to rise due to demand for undamaged homes.
"Values are now 3.4% above last year and only 2% below the market peak. The areas surrounding Canterbury have also been increasing in value since the start of 2011, with Waimakariri up 5.4% and Selwyn District up 4.9% since January," he said.
Values in Dunedin have been volatile over recent months and are currently equal with the start of the year, but 2.4% below the same time last year and 6.8% below the peak.
"While there has been a slight increase in new listings in many areas, this has yet to translate into an increase in the number of sales," Ingerson said.
"However looking back over the past 20 years while sales generally pick up in October and November, that trend has been largely absent in the last few years, with any increases tending to be in February and March."
The QV index revealed an increase in values in the last month for most of the provincial centres - a further sign values are rallying across the country - though values remain below last year in many towns.
Wanganui and New Plymouth are the furthest below year earlier levels, down 5.3% and 3% respectively.
Gisborne and Palmerston North are both 0.3% above last year while Nelson is 1.9% up after six months of gradual increases.
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