Nationwide residential property values have remained relatively high with low-interest rates, and the loosening of the LVR restrictions has been continuously fueling demand, says property analytics website QV.
According to the latest QV House Price Index, national residential property values for May increased 6.9% over the past year, while values rose 0.8% over the past three months. The data shows the nationwide average value is now $677,996. When adjusted for inflation, the nationwide annual increase drops slightly to 5.8%.
“As anticipated, nationwide sales volumes are down as we enter the usual winter slowdown although value levels are holding,” said QV general manager David Nagel. “This is typical of this time of year, as many people put off selling their property until the warmer months.
In the Auckland region, the residential property value growth increased slightly by 1.0% year-on-year and by 0.1% over the past quarter. The average value for the region sits at $1,054,729. When adjusted for inflation, values dropped 0.1% over the past year.
“Quarterly value growth across the Auckland and Wellington region has come virtually to a standstill,” Nagel noted. “With a lower expectation of capital gains, particularly in Auckland, we’re seeing people show less urgency when it comes to selling or buying property."
In the regional centres of Hamilton, Tauranga and Christchurch, the value growth remains flat. While Dunedin managed to buck the trend, with entry-level prices remaining comparatively low and well-located properties continuing to demand high prices.
“With interest rates due to remain stable coupled with increasing costs faced by investors, I would anticipate the current trends will remain mostly the same over the coming months,” said Nagel. “Vendors will need to put extra focus on marketing their property effectively in a tighter market.”
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