Wellington property market has flattened and is likely to stay that way for the rest of the year, according to the latest report from property analytics firm CoreLogic.
The report shows property values in Wellington dipped by 1.2% since February, compared to increases of 2.9% in Upper Hutt, 1.4% in Lower Hutt, and 0.9% in Porirua.
CoreLogic New Zealand senior research analyst Kelvin Davidson said there is a noticeable soft patch in Wellington but not every part of the city is sluggish.
For example, Aro Valley saw average values rise by 2.2% over the past three months, and another seven suburbs recorded gains of 1-2%. Nine of ten suburbs have property values that are below the city’s average of $754,924. Of the 10, Roseneath is the only high-priced suburb.
Across Wellington, the higher priced properties (>$850,000) have only seen gains of 0.7% over the past year, whereas the $650,000-$850,000 bracket has risen by 7%.
“In reality, Wellington’s slowdown shouldn’t come as much of a surprise,” Davidson said. “After all, as we’ve already seen in Auckland, as prices rise ever-higher and affordability deteriorates, a natural handbrake emerges. This seems to be showing up in the higher-priced suburbs.
Tight serviceability tests currently being applied by major banks also add to the current slowdown, as evidenced by the recent cooling of activity levels and the lull of the previously-keen first-home buyers.
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