Auckland drags up NZ house prices

The latest QV House Price Index shows that Auckland values have gone up by 5.7% in the last three months, 18.8% year-on-year, and 55.6% since the last market peak in 2007.

When adjusted for inflation, they are up by 18.5% year-on-year and are 33.7% over the 2007 peak.

This means the average residential property value in the Auckland area is now $855,672.

The SuperCity’s rising values continue to have an impact on nationwide values - which increased by 4.1% over the past three months and by 10.1% over the last year.

This was the fastest annual increase since 2007 and has left nationwide values at 27.4% above the 2007 market peak.

When adjusted for inflation, the rise in annual values comes in at 9.9%, leaving values 8.8% higher than in 2007.

The average residential property value nationwide is now $527,760.

Not only are Auckland’s values driving the index up, but they are leading buyers to look outside of the Auckland market which is influencing house prices in other markets.

QV national spokesperson Andrea Rush said there was a definite upward swing in market activity in the upper North Island.

This was especially evident in Hamilton, but also in Tauranga, Whangarei, and the Franklin, Hauraki and Waikato Districts.

For example, the average home value across the Hamilton City area is now $390,113.

Rush said QV’s index is showing a steepening upward trend as values track upward by 7.4% year-on-year and 3.8% over the past three months.

In Whangarei, values increased by 5.0% year-on-year, while the Far North District was up 5.4% and the Hauraki District rose by 10.7% over the same period.

Values in Tauranga City continued the upward trend seen over the past few months. They rose 7.7% year-on-year and 3.0% over the past three months.

Western Bay of Plenty values also went up. They have increased by 5.9% since July last year and 3.3% since May.

Rush said valuers in Wellington and Dunedin have also been reporting increased interest and activity from Auckland investors.

Net migration remains at record highs and there are now incentives for new migrants to move to areas outside of Auckland, she continued.

“So this coupled with record low interest rates is likely to see continued upward pressure on home values as we move towards spring.”

Meanwhile, back in the Super City Region, values are up across all areas of the market.

QV’s Northern homevalue operations manager Jan O’Donoghue said there is not enough existing stock, or new homes being built, to accommodate the demand for housing in Auckland.

Investors are very active particularly in suburbs that offer the most affordable housing like Mt Roskill, Massey, Te Atatu and New Lynn and Papakura, she said.

“There is high demand for home and income type properties and any sites with development or subdivision potential.

“High numbers of apartments have also been selling off the plan in central Auckland as demand for more affordable homes reaches a crescendo.”