Rate of increase slows again

The latest monthly QV Residential Price Movement Index shows nationwide residential property values for June up 8% over the past year, and 2.1% over the past three months. 

Last month, the annual rate of increase was 8.2%. It peaked at 10% in December.

Andrea Rush QV National Spokesperson said: “The nationwide index is still increasing but the picture around the country is mixed."

She said Wellington and Dunedin had reported a downward trend in prices in June but Auckland and Christchurch were still increasing at a similar pace to last year.

“Sales volumes and home loan approvals (new and existing) are also down considerably at between 15-20% less than at this time last year.” 

The Auckland region as a whole has increased 2.7% over the past three months and 12.3% year-on-year.  Manukau East is up the most with values increasing 4.3% over the past three months. 

QV valuer Bruce Wiggins said: “We are seeing a gradual reduction in the rate of growth in property values in some areas and more sellers opting to put on an asking price or sell by negotiation. However, sale by auction remains popular in high value areas or where there are special characteristics. The gradual reduction in growth  is particularly noticeable in ‘hot spots’ such as Waitakere, which was up more than 17% year-on-year a few months ago and is now showing a 15.2% increase year-on-year and Papakura, where values are also flattening off.”

He said land-banking remained popular in North-West Auckland, where there were a number of new subdivisions being undertaken and more planned.

Residential property values in Hamilton City have risen 1.1% over the past three months, and 4.9% over the past year.

QV valuer Nicky Harris said: “Values in Hamilton have seen a slight increase this month, which has been driven by the top end of the market, particularly in North Hamilton. Elsewhere in the city and in the low and middle market we are seeing a gradual reduction in the rate of growth but in general as there are fewer properties on the market, it is still a sellers’ market in Hamilton.”

Tauranga City values have increased 2% in the past three months and 5.5% year-on-year. Values in the Western Bay of Plenty are also rising, up 1.6% in the past three months and 6.2% year-on-year.

QV registered valuer Mairi Macdonald said: “The market is mixed depending on the suburb and as prices are increasing in more sought-after areas more buyers are looking in cheaper suburbs.”

Values in the wider Wellington Region have decreased 0.4% over the past three months but are up 1.8% year-on-year. 

QV Wellington registered valuer Kerry Buckeridge said: “There are not many good properties under $400,000 which is beyond the means for many first home buyers – especially with the higher deposit requirements imposed by the LVR caps.  We are seeing some first-home buyers finding ways around the caps, for instance by getting parental guarantees.”

Property values in Christchurch City have increased 2.5% over the past three months, 7% year-on-year and 21.1% since the peak of 2007.

QV valuer Daryl Taggart said: “While the Christchurch property market has an appearance of quietening down there is still plenty of sales activity.”

Property values in Dunedin City have decreased by 0.4% over the past three months, but are up 1.1% year-on-year and values there are 0.8% above the previous peak of 2007.

Values in the provincial centres are variable with some showing slight increases, others flat and some decreasing.