Auckland prices 'reaccelerate'

The latest monthly QV residential price movement index shows nationwide residential property values were 5.1% over the year to November and 0.7% over the past three months.

The Auckland market has increased 9.3% year on year, 3.1% over the past three months and 37% since 2007.

Spokeswoman Andrea Rush said: “We are seeing an reacceleration of values in Auckland with the residential price movement index chart now showing a steepening upward trend and values in some areas have risen 5% over the past three months.”

Auckland valuer Bruce Wiggins said well-presented, but not high end, properties were selling for much more than their previous purchase price within a short space of time. "While these have often been upgraded in the intervening period, the rise in sale price far exceeds the money spent. One North Shore townhouse that sold in the $700,000s three months ago was renovated to a good standard internally and was under agreement in the $900,000s three months later. Conditions are also favorable for investors, and in South Auckland there have been examples of investors buying multiple properties, adding fuel to the investor rule debate for investors with five or more properties that the Reserve Bank is currently looking at.”

Rush said other main centres, including Hamilton, Tauranga, Wellington, Christchurch and Dunedin, were also showing moderate increases.

“Nationwide there’s been an influx of new listings to the market plus which is usual for this time of year and this has resulted in an increased number of sales and home loan approvals.”

Hamilton valuer Nicky Harris said there was a sense of urgency in the market and first-home buyers were more active. 

In Wellington, valuer Pieter Geill said there was a surge of activity and well-presented,located and priced homes were selling well.

Home values in Christchurch City have increased 1% over the past three months and 3.7% year-on-year and are now 23% higher than in the previous peak of 2007.

Valuer Daryl Taggart said: "Listings and sales are up and there’s reportedly strong competition for good quality and properties in desirable localities, but some other properties are failing to attract interest and are proving more difficult to sell. There has been good activity in the new build and vacant land market and as a result section values appear to increasing across the board compared to this time a few months ago. The effects of the earthquakes are reducing for some with a good number of homes having now been repaired across the city.”