The latest QV House Price Index is out and it shows residential property markets around the country saw rising values in March.
Nationwide values rose by just 0.2% over the past three months, which left the national average value at $559,492.
Year-on-year, national values increased by 11.4%. This means they are now 35% above the 2007 market peak.
Once adjusted for inflation, national values were up by 11.3% year-on-year and are 15.4% higher than in 2007.
While many property markets – including Hamilton, Tauranga and Wellington - saw strong value growth in March, the Auckland market was the exception.
QV’s data showed the Auckland region’s values were down for the third consecutive month.
Over the past three months, the city’s values have decreased by 0.2%, leaving the average value at $931,061.
Year-on-year, Auckland’s values rose by 16.9%, which left them 70.4% above the 2007 market peak.
Once adjusted for inflation, Auckland values were up 16.8% year-on-year and are 45.5% higher than in 2007.
However, QV national spokesperson Andrea Rush said that, over the past few weeks, activity and demand has begun to pick up again across the Super City.
“Values have actually risen again over the past month by 0.6%, so it appears the downward trend may be coming to an end.”
Also, while the Auckland region’s overall figure was down, not all parts of the SuperCity saw values drop, she said.
For example, values in Manukau rose and values in the city’s outer fringe areas continued to make their way up.
QV’s Auckland valuer, James Wilson agreed that Auckland’s downward trend could be ending.
He said the “wait and see” approach, which entered the market following the introduction of new rules to curb investor activity, is now subsiding and investors are beginning to re-enter the market.
“Agents are reporting a shortage of listings and that well-presented, quality homes are selling well with strong prices being achieved.”
Further, buyers appear willing to secure properties on an unconditional basis without always completing adequate “due diligence” – which is highly risky, Wilson said.
The Auckland market was changing though, he added.
“Investors are now placing greater emphasis on the long term rental returns over capital gains.
“This indicates a shift away from a speculation based investment model and a return to traditional models governed by longer term investment returns.”
Buyers looking for lower deposit requirements and better rental returns continue to look away from Auckland.
This is contributing to the heat of the property markets in Hamilton (up 3.7% over the past three months and 23.3% year-on-year) and Tauranga (up 5.5% over the past three months and 22.6% year-on-year).
Rush said regional areas within commuting distance to Auckland, Tauranga and Hamilton also continue to show significant value rises.
This includes towns located in the Waikato, Waipa, Hauraki, Western Bay of Plenty and Kaipara Districts.
Values in the Wellington and Dunedin markets are rising at a steady pace while, in comparison, the Christchurch market remains relatively flat, she said.
“Many provincial centres are experiencing the fastest rate of home value growth since before the previous peak of 2007 - including Whangarei, Napier, Rotorua, Taupo, Carterton in the Wairarapa, as well as the Central Otago and Queenstown Lakes Districts.”
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