Property values continue to rise across New Zealand except in Auckland, Hamilton and Christchurch, buyer demand continues to fall in Auckland while apartment prices hit a new record high, the latest data from QV and realestate.co.nz reveals.
The latest monthly QV House Price Index shows that nationwide residential property values for February increased 13.5% over the past year and by 1.1% over the past three months, with the average value nationwide now $631,349.
In the Auckland region, values have risen over the quarter in some parts but decreased in others as the latest round of LVR restrictions take effect.
“While parts of Auckland have seen values drop values continue to rise in central Auckland, Waiheke Island and in Rodney and Franklin,” says QV national spokesperson Andrea Rush.
“The same trend of negative growth was seen in parts of the Auckland market this time last year following the introduction of the 30.0% LVR rules for investors introduced in October 2015, then value began increasing again by April 2016.
“So it’s possible the latest quarterly decrease seen in parts of the Auckland will be relatively short-lived as the market drivers of relatively low interest rates, strong net migration and a high number of sales to investors remain.”
Residential property values across the Auckland Region increased 12.8% year on year and quarterly growth has decreased by 0.7% over the past three months.
The average value for the Auckland Region is now $1,043,680 and values are now on average 91.0% higher than the previous peak of 2007. When adjusted for inflation values rose 11.3% over the past year and are 61.0% above the 2007 peak.
According to real-time demand statistics from realestate.co.nz, home buyers are turning their attention to Hawkes Bay, Otago, Gisborne, Manawatu-Wanganui as demand in Auckland falls.
Auckland is experiencing a double digit fall in demand (10.8%), as is Wellington (18.8%). “Demand” is measured by taking the average number of listing views on residential properties over the last three months and comparing it to the same time last year.
“A drop in big city demand shows us that it’s not just retirees who could be considering cashing up and moving away from cities like Auckland,” says realestate.co.nz spokesperson, Vanessa Taylor.
“With technology and internet advancements the way they are, and with more people working from home, it is now more feasible for young people who still need to work to do so remotely from the regions. Younger house hunters who can’t afford big city prices now have another consideration set.”
Meanwhile, Auckland apartment prices have hit a new record high, as figures show that for the month of February the average asking price for an Auckland apartment hit $711,892, although it is still more obtainable than a house in the city.
“We’ve seen the cost of Auckland houses moving upwards and now the average asking price for an apartment in the city has hit an all-time high,” says Taylor.
“For many buyers, it could well be a matter of embracing apartment living, accepting the reality of today’s asking prices, or looking to move or invest in another region.”