Residential property price rises stalling

Residential property prices, which were recovering slowly, have started to stall according to Quotable Value's (QV) latest report.

This is despite the QV price indices for December showing residential values have increased by 2.4% over the last few months putting prices 3.5% below the 2007 peak market price.

The increase in values towards the end of the year was perhaps more of an aberration rather than a sign of a universal recovery, QV’s research director Jonno Ingerson says.

“Some parts of the country were feeling a bit more positive then the others… so perhaps now it's not increasing it's returned back to a status quo. We might have been through a period in early spring where there was a little artificial increase,” Mr Ingerson says.

Values in the Auckland area increased by 4.3% and ended the year at their highest level ever, 1.4% above the previous peak in 2007. Auckland’s market was characterised by a lack of new listings and quality stock leading to an increase in demand for quality stock when it appeared on the market. Auckland city prices were up significantly to 3.3% above the 2007 peak.

As a result of sporadic values throughout the year Wellington ended up 0.4% below the previous year and 6.5% below its previous market peak.

Despite the earthquakes Christchurch values were up 4.3% and only 0.9% below the 2007 market peak. The Selwyn and Waimakariri districts immediately surrounding Christchurch had respective yearly increases of 7.5% and 9.1% putting them 5% and 2.6% above 2007 market peaks as displaced residents sought new housing.

Sales volumes nationwide were at the third lowest levels in the last 20 years and were more than 20% below the long-term average. Low interest rates encouraged first home buyers back into the market.

The average price for territorial authorities are below:

 

 

Far North 361,234 -3.2
Whangarei 314,830 0.6
Kaipara 301,242 -1.9
Auckland - Rodney 508,107 1.7
Hibiscus Coast 494,026 0.5
Rodney (North) 524,749 3.9
#A Auckland - North Shore 583,684 3.8
Coastal North Shore 644,469 3.0
North Shore Onewa 467,908 5.6
North Harbour 647,208 3.5
#A Auckland - Waitakere 403,206 3.2
#A Auckland - City 597,023 5.8
Auckland City (Central) 531,502 6.1
Auckland City (East) 745,691 6.1
Auckland City (South) 536,569 6.2
Islands 521,500 -6.4
#A Auckland - Manukau 456,553 2.5
Manukau East 557,979 4.4
Manukau Central 354,472 1.8
Manukau North West 411,608 0.5
#A Auckland - Papakura 359,394 2.1
Auckland - Franklin 381,229 2.1
Thames Coromandel 393,575 -3.0
Hauraki 229,031 -0.8
Waikato N/A N/A
Matamata Piako 265,667 -4.4
# Hamilton 344,754 0.0
Hamilton North East 418,943 -0.3
Central City/North West 297,341 1.1
Hamilton South East 313,171 -0.4
Hamilton South West 304,605 -0.6
Waipa 332,446 -2.0
Otorohanga N/A N/A
South Waikato 168,779 -2.3
Waitomo N/A N/A
Taupo 342,672 -1.9
Western BOP 347,509 -4.2
# Tauranga 385,860 0.7
Rotorua 273,352 -3.7
Whakatane 290,614 -2.2
Kawerau N/A N/A
Opotiki N/A N/A
Gisborne 245,404 -2.8
Wairoa N/A N/A
Hastings 304,888 -0.7
# Napier 332,554 -1.6
Central Hawkes Bay 230,850 0.0
New Plymouth 312,896 -2.1
Stratford 212,417 5.7
South Taranaki 207,324 0.6
Ruapehu N/A N/A
Wanganui 194,669 -4.3
Rangitikei 205,262 -5.0
Manawatu 228,966 -4.6
# Palmerston North 272,894 0.1
Tararua 145,967 1.9
Horowhenua 203,329 -0.7
Kapiti Coast 361,588 -0.7
#W Porirua 411,644 -1.0
#W Upper Hutt 350,770 -1.2
#W Hutt 363,366 -1.5
#W Wellington 483,160 0.6
Wellington City & Southern Suburbs 469,228 -0.4
Eastern Suburbs 507,405 2.9
North Wellington 447,913 0.4
Western Suburbs 602,759 1.1
Masterton 225,390 -2.3
Carterton 263,250 2.8
South Wairarapa 272,739 -4.3
Tasman 368,139 -0.6
# Nelson 364,939 2.5
Marlborough 326,488 -1.8
Kaikoura N/A N/A
Buller 212,745 4.2
Grey 205,911 2.7
Westland 235,389 2.8
Hurunui 320,017 2.0
Waimakariri 355,380 9.1
# Christchurch 371,885 4.3
East 309,307 3.6
Hills 458,190 0.0
Central City and North 408,763 4.4
Southwest 368,147 5.1
Banks Peninsula 390,823 5.4
Selwyn 423,804 7.5
Ashburton 264,476 3.9
Timaru 238,038 4.5
MacKenzie N/A N/A
Waimate N/A N/A
Waitaki 224,478 4.6
Central Otago 279,901 1.4
Queenstown Lakes 521,089 1.5
# Dunedin 265,210 1.6
Central/Northern City 269,786 2.1
Peninsula/Coastal Dunedin 233,311 1.0
Southern City 250,510 -0.4
Taieri 292,236 3.3
Clutha 158,843 0.4
Southland 201,170 2.9
Gore 173,669 1.3
# Invercargill 208,466 -0.8

#A Auckland Area 525,532 4.3
#W Wellington Area 423,485 -0.4
# Main Urban Areas 440,229 3.2

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2 Comments & Questions

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Why do these housing stories always have a negative tone about them? House prices in the major NZ cities are to expensive for your average wage earner. Even more so when you factor in the increased costs of living these days (petrol, gst, food, transport)

I'd love to see a story that focused on the fact that house prices are being driven down and that more Kiwis can now afford their first home....

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Not in the suburbs of Mt Eden, Sandringham,, Kingsland, Epsom,

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