Auckland property values down

Auckland regional property values have decreased in the last three months while the regions continue to out-perform most of the main centres, QV says.

In the Auckland region, residential property values across registered an increase of 0.8% year on year, but dropped by 0.6% in the three months ended in September.

The average value for the Auckland region is at $1,039,066, which is 90.1% higher than the previous peak of 2007. When adjusted for inflation values dropped 1.0% over the past year and are 58.7% above the 2007 peak, the latest monthly QV House Price Index showed.

Nationwide residential property values for September increased 4.3% over the past year. Values rose by 1.1% over the past three months and the nationwide average value is now $646,378 which is 56% above the previous market peak for late 2007.

When adjusted for inflation the nationwide annual increase drops slightly to 2.5% and values are now 30.2% above the 2007 peak.

QV national spokesperson David Nagel said the reductions in quarterly value growth had extended from the main centres last month to almost all the 15 major urban areas QV is tracking – with the exception of Rotorua, Palmerston North, Dunedin and Invercargill.

Nagel said the year-on-year growth is “still showing double digit gains in many of New Zealand’s provincial towns. However, the quarterly change shows a gradual slowing of the property market in almost all city locations,” he said.

“While there is uncertainty around who will govern the country in the coming weeks, there are policies that if agreed up on under a coalition government could influence the property market.

“These include a gradual reduction on immigration numbers which has previously helped fuel the property market, particularly in Auckland and the increase in housing supply,” Nagel said.


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