New figures suggest higher proportion of first home buyer activity
According to new figures, New Zealand residential property values have increased 7.6% for the year ended in April, while values rose 1.1% over the past three months.
According to the latest QV House Price Index, the nationwide average value is now $678,856. When adjusted for inflation, the nationwide annual increase drops to 6.4%.
In the Auckland region, the residential property value growth increased by 0.8% year-on-year, although values dropped by 0.3% over the past quarter. The average value for the Auckland region sits at $1,051,687. When adjusted for inflation, values dropped 0.3% over the past year.
QV general manager David Nagel said there is a “continued trend of people seeking a lifestyle-change away from the cities and purchasing better-valued properties in the regions, particularly those that are within commutable distances of major centers.”
The Hamilton, Tauranga and Dunedin markets continue to record rising annual value growth, while figures in Christchurch remain flat.
“Despite the fact that home values remain high, first home buyer activity is increasing particularly in Wellington and Dunedin – as people take advantage of their KiwiSaver funds as deposits,” says Nigel.
"The higher proportion of first home buyer activity is largely due to rising rents, which mean it can often be as affordable to purchase an entry-level home and pay a mortgage, as it is to rent a home.
“However, for many, raising a deposit is still a bridge too far to cross to be able to gain entry into the housing market,” he added.
