Average residential property values are rising in nearly all of New Zealand, according to Quotable Value (QV)’s latest report.
QV’s latest House Price Index revealed that the average value of residential properties in the country was $714,747 in January 2020, a 2.5% increase compared to three months earlier and 4.4% compared to the previous year.
Average values rose in 92 of the 99 locations that the report covered, with the only areas to record declines being Coastal North Shore (-0.6%), Franklin (-0.3%), Carterton (-2.0%), Kaikoura (-1.8%), Opotiki (-4.5%), South Wairarapa (-0.6%), and Taupo (-0.3%).
David Nagel, general manager of QV, said there’s still a massive demand for limited stock on offer despite low volumes of transactions last month – noting the increase of new listings towards the end of January around most parts of the country.
“This steady demand from right across the spectrum of buyers, coupled with the shortage of listings, has meant values are continuing rise,” Nagel told Landlords. “But overall listings are reported to be down at the same time last year, which suggests the current trend of steady price growth is likely to continue in the short term.”
Read more: Report reveals values picking up the pace
Average values in Auckland rose by 1.7% over the three months to January to $1,049,383, values in Wellington rose by 3.6% over the same period to $756,076, and those in Christchurch rose 2.1% to $510,575.
Rupert Yortt, senior consultant at QV, said Auckland’s market in January is similar to that in December with few listings fuelling good levels of competition.
“With the market taking a bit of a break in January, the bulk of listings are just beginning to come on, which may ease the pressure slightly although we expect the positive sentiment to remain for the foreseeable future,” he said.
Meanwhile, Dunedin surpassed the other main centres – with a growth of 8.4% in the three months to January, taking the average value to $527,101. Meanwhile, eastern districts within the boundaries of the former Auckland City Council saw the highest average values in the country, which includes St Heliers and Mission Bay – with an average value of $1,560,134 in January, up 2.0% compared to three months earlier.