Residential property values increased 6.6% during 2017
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Residential property values increased 6.6% or $41,660 during 2017 from $627,905 in December 2016 to $669,565 in December 2017, new figures released by Quotable Value’s (QV) House Price Index show.
The average national value of residential property increased 3.6% over the final three months of 2017.
The index show sales volumes were down on 2016 for every month during the year, and between February and October 2017, they were in excess of 20% below 2016 levels before picking up in November when a post-election last spring surge saw prices jump to just 10% lower than November 2016 levels.
QV National Spokesperson Andrea Rush said: “A slow-down in the rate of value growth in the housing market that began in the latter part of 2016 with the introduction of LVR speed limits requiring a 40% deposit by investors continued throughout 2017.
“The frenzy in the market of the previous three years induced by high numbers of investors in the market subsided and we saw a return to more normal levels of activity in housing markets around the country.
“By October, nationwide annual value growth had slowed to 3.9%, the lowest rate of growth seen in five years and for the Auckland Region it slowed to - 0.6%, the slowest annual rate of growth seen there since March 2011,” Rush added.
Rush said potential housing policy changes in the lead up to the election also caused uncertainty and people took a wait and see approach causing activity to slow dramatically over the winter quarter and this resulted in value decreases in many areas.
“The usual annual spring surge was very slow to arrive and listing levels and market activity did not pick up until November and December and this can be seen in both sales volumes and value growth recovering in the last two months of the year.”
Auckland
The average value across the wider Auckland region increased 0.4% or $4,583 from $1,047,179 at December 2016 to $1,051,762 at December 2017. Values rose 1.2% over the past three months, QV figures show.
Hamilton
Values in Hamilton dropped slightly by 0.5% over the past three months but rose on average by 1.6% or $8,586 over the past year from an average of $534,860 in December 2016 to $543,446 in December 2017.
Tauranga
Tauranga home values increased 3.2% year on year or $21,528 from an average value of $672,197 in December 2016 to $693,725 in December 2017. After dipping in November, values in the city had begun rising again by December and values rose 1.0% in the final quarter of the year.
Meanwhile, the Western Bay of Plenty market has seen sustained growth throughout 2017 and rose 9.1% in the year to December or $52,185 from an average value of $571,520 in December 2016 to $623,705 in December 2017. Values rose 1.4% over the past three months.
Wellington
Values across the wider Wellington Region rose 9.4% or $ 54,040 over the past year from an average value of $574,410 in December 2016 to an average value of $628,450 in December 2017. Values across the region rose 3.6% over the last quarter of 2017.
Christchurch
Christchurch city values have remained stable, dropping slightly by 0.1% or $541 over the past year from an average value of $494,247 in December 2016 to $493,706 in December 2017. Values have increased slightly by 0.4% over the past quarter.
Dunedin
The recent trends continue as residential property values continue to rise across Dunedin. Values rose 10.4% or $36,965 over the past year from an average value of $354,133 in December 2016 to an average value of $391,098 in December 2017. Values increased 2.7% over the final three months of 2017.
Nelson
Nelson residential property values continue to increase, rising 11.1% or $55,318 year on year from an average value of $499,866 in December 2016 to $555,184 in December 2017. Values rose 1.8% over the last three months of 2017.
Meanwhile, values in the Tasman District have also continued to rise, up 11.4% or $56,927 year on year from an average value of $499,082 in December 2016 to $556,009 in December 2017. They increased 3.0% over the last quarter of 2017.
Hawkes Bay
Values continue to rise across the Hawkes Bay region. Napier values rose 15.1% or $62,770 year on year from an average value of $415,189 in December 2016 to an average value of $477,959. Values rose 2.6% over the past three months.
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The average national value of residential property increased 3.6% over the final three months of 2017.
The index show sales volumes were down on 2016 for every month during the year, and between February and October 2017, they were in excess of 20% below 2016 levels before picking up in November when a post-election last spring surge saw prices jump to just 10% lower than November 2016 levels.
QV National Spokesperson Andrea Rush said: “A slow-down in the rate of value growth in the housing market that began in the latter part of 2016 with the introduction of LVR speed limits requiring a 40% deposit by investors continued throughout 2017.
“The frenzy in the market of the previous three years induced by high numbers of investors in the market subsided and we saw a return to more normal levels of activity in housing markets around the country.
“By October, nationwide annual value growth had slowed to 3.9%, the lowest rate of growth seen in five years and for the Auckland Region it slowed to - 0.6%, the slowest annual rate of growth seen there since March 2011,” Rush added.
Rush said potential housing policy changes in the lead up to the election also caused uncertainty and people took a wait and see approach causing activity to slow dramatically over the winter quarter and this resulted in value decreases in many areas.
“The usual annual spring surge was very slow to arrive and listing levels and market activity did not pick up until November and December and this can be seen in both sales volumes and value growth recovering in the last two months of the year.”
Auckland
The average value across the wider Auckland region increased 0.4% or $4,583 from $1,047,179 at December 2016 to $1,051,762 at December 2017. Values rose 1.2% over the past three months, QV figures show.
Hamilton
Values in Hamilton dropped slightly by 0.5% over the past three months but rose on average by 1.6% or $8,586 over the past year from an average of $534,860 in December 2016 to $543,446 in December 2017.
Tauranga
Tauranga home values increased 3.2% year on year or $21,528 from an average value of $672,197 in December 2016 to $693,725 in December 2017. After dipping in November, values in the city had begun rising again by December and values rose 1.0% in the final quarter of the year.
Meanwhile, the Western Bay of Plenty market has seen sustained growth throughout 2017 and rose 9.1% in the year to December or $52,185 from an average value of $571,520 in December 2016 to $623,705 in December 2017. Values rose 1.4% over the past three months.
Wellington
Values across the wider Wellington Region rose 9.4% or $ 54,040 over the past year from an average value of $574,410 in December 2016 to an average value of $628,450 in December 2017. Values across the region rose 3.6% over the last quarter of 2017.
Christchurch
Christchurch city values have remained stable, dropping slightly by 0.1% or $541 over the past year from an average value of $494,247 in December 2016 to $493,706 in December 2017. Values have increased slightly by 0.4% over the past quarter.
Dunedin
The recent trends continue as residential property values continue to rise across Dunedin. Values rose 10.4% or $36,965 over the past year from an average value of $354,133 in December 2016 to an average value of $391,098 in December 2017. Values increased 2.7% over the final three months of 2017.
Nelson
Nelson residential property values continue to increase, rising 11.1% or $55,318 year on year from an average value of $499,866 in December 2016 to $555,184 in December 2017. Values rose 1.8% over the last three months of 2017.
Meanwhile, values in the Tasman District have also continued to rise, up 11.4% or $56,927 year on year from an average value of $499,082 in December 2016 to $556,009 in December 2017. They increased 3.0% over the last quarter of 2017.
Hawkes Bay
Values continue to rise across the Hawkes Bay region. Napier values rose 15.1% or $62,770 year on year from an average value of $415,189 in December 2016 to an average value of $477,959. Values rose 2.6% over the past three months.
Related stories:
RBNZ updates residential mortgage lending framework
Nearly a third of Aussie stressed about mortgages
