Price momentum spreading: QV

It has released its latest statistics, which show the heat in Auckland’s property market spreading to the rest of the country.

Nationwide house prices are now 3.2% up on the previous market peak of late 2007, 1.7% up over the past three months and 6.3% year-on-year.

Jonno Ingerson, QV.co.nz research director said: “A few months ago the nationwide increase in values was mainly driven by Auckland and Canterbury. However, the rest of the main cities and provincial centres are now also increasing in value, although not as quickly as Auckland and Canterbury.”

Auckland’s prices are now up 10.4% on a year earlier. But while prices in the west and north of the city continue to increase strongly, the pace of growth in Rodney, central Auckland and South Auckland has slowed.

In the other main centres, over the past year Hamilton is up 4.6%, Wellington 1.7%, Christchurch 7.5% and Dunedin 3.7%. Christchurch has continued to increase the most with a 2.9% increase seen over the past three months.

The only main city that is still trailing behind is Tauranga, where values have been consistently flat. This has left values in Tauranga at exactly the same as February last year.

Most of the main provincial centres have started increasing in value faster over the past three months.

The exceptions are Rotorua, down 1.3% over the past three months and Gisborne, down 1.2%, and Whangerei which is flat.

While there is variability across the country, values for the combined rural areas have been steadily increasing over the past 18 months and are up 3.2% over the past year.

Ingerson said there was a low number of properties for sale and not many new listings. “This continues to constrain choice for buyers, many of who are keen to buy but cannot find a suitable property. When quality properties come on to the market they continue to sell well.”

But he said buyers were still cautious, getting building reports and valuations before making purchases.