House price rise slow and steady: QV

But research director Jonno Ingerson said the rate of increase was still relatively slow – about 5% per year compared to the up to 15% that was seen last decade.

““The current value increase is also being driven largely by Auckland and Canterbury. If those two areas are excluded then values across the rest of the country have only increased by around 1.5% over the past year. Furthermore, although values are now just above the 2007 peak, when adjusted for inflation they remain 12% lower.”

He said there was caution among buyers, who were doing research and acting carefully.

Values in the wider Auckland area have risen 2.8% over the past three months and 7.2% over the past year. The former Auckland City has had the steepest price rise, up 8.4% for the year.  Manukau and North Shore follow close behind, on 6.8% and 6.3% respectively.

Operations manager Kerry Stewart said: “Growth in Auckland continues, and while the volume of listings has increased we are still seeing a shortage of suitable stock for both improved properties and vacant residential land. This is leading to limited choice for potential buyers in an already heated market. As a result, further competition for quality properties that come onto the market is likely to increase”.

Values in Hamilton are also rising, up 4.1% over the last year and 1.3% over the past three months. Valuer Richard Allen said that was driven by investors and first-home buyers. Tauranga remains relatively flat, although up 1.1% on last year.

Although Wellington has seen slight increase in values over the past year, up 2.3%, the market has seen little movement during the past six months.

Valuer Kerry Buckeridge said there were some good rental investment opportunities available, with yields of 7% to 8%. But increased insurance premiums were pushing some people out of the apartment market.

Christchurch values continue to rise. Over the past 12 months values have risen 6.6%, with a 1.8% rise in the last three months. Christchurch now sits 3.3% above the 2007 peak and is looking to stay strong heading towards the start of summer.

But technical category three (TC3) blue zone properties are decreasing in value as the extent of substantial work and repairs to foundations become evident. Values of properties within this zone are approximately 3% below values seen before the earthquakes.

Values in Dunedin also continue to rise, now 5.1% up over the past year and 2% up over the past three months.

Over the past year values have increased between 0.8% and 2.8% in Hastings, New Plymouth, Palmerston North, Nelson, Queenstown Lakes and Invercargill, with the greater changes tending to be in the north. Rotorua, Napier and Wanganui are at about the same level as last year, while Whangarei has dropped 1.7% and Gisborne has dropped 4.6%.