Wellington’s housing market is still rising faster than Auckland although the rate of value growth there is slowing, according to the latest monthly QV House Price Index.
Nationwide residential property values for April rose 11.1% over the past year, the slowest annual rate of growth since July 2015. The average value remains at $631,147, 52.3% above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 8.7% and values are now 27.2% above the 2007 peak.
In Auckland, residential values increased 10.7% year on year which is the slowest annual rate of growth since December 2014 and quarterly growth decreased by 0.4% over the past three months. The average value across Auckland now sits at $1,043,830, with values on average 91.0% higher than the previous peak of 2007.
QV national spokesperson Andrea Rush said, “Nationwide quarterly value growth has plateaued over the past three months as the housing market continues to be constrained by the latest round of LVR restrictions.
“Values dropped in parts of Auckland and Christchurch over the past quarter and the rate of value growth has slowed considerably in Tauranga and Queenstown.
“Meanwhile, the average value across the Wellington region has now topped $600,000 however the rate of value growth there is also continuing to slow but market remains buoyant particularly in more affordable parts of the region such as Porirua and the Hutt Valley.”
The Index showed the average value across the wider region in Wellington has reached $602,230 with values up 21.2% year on year and 3.4% over the past three months.
Wellington City values were up 20.8% over the past year and 3.1% over the past three months and the average value there is now $724,176.
The Hutt Valley is still accelerating with Lower Hutt values up 25.1% year on year and 4.3% since February; Upper Hutt is up 26.6% year on year and 2.8% over the past three months.
Porirua values are up the most over the past three months rising 5.5% since February and 24.4% year on year. The average value there is now $510,853.
QV homevalue registered valuer, David Cornford said, “Value growth has remained fairly consistent over the past month and Porirua has again seen the greatest value growth in the region, followed by Upper and Lower Hutt.
“Value growth in these areas is supported by a strong first home buyer presence in the market while the Wellington City has market has slowed slightly as first home buyers continue to turn to Porirua and the Hutt valley as they provide a more affordable option.
“The number of listings has increased and this is providing buyers with more choice which has taken some of the heat out of the market. Also, investors requiring finance are less active in the Wellington city market since the introduction of LVR restrictions last year due to the higher deposit required.”