Supply shortage sends house prices close to 2007 peak
National property values increase 2.2% in the three months ended July 31 and have risen 4.6% over the past year to be 0.8% off the market peak in 2007.
BUSINESSDESK: New Zealand property values extended their gains in July as homes in Auckland and Christchurch continue to appreciate amid a shortage of supply, government valuer Quotable Value says.
National property values rose 2.2% in the three months ended July 31 and have increased 4.6% over the past year to be 0.8% off the market peak in 2007.
"Across the main centres listings remain relatively tight leading to less choice for buyers," research director Jonno Ingerson says.
"In Auckland this has led to a sellers' market with prices pushing upwards, while Wellington is showing the first signs of heading that way, too."
New Zealand's property market has been on the up this year after stalling through 2011, when potential buyers shied away from taking on too much debt to fund purchases and sellers were unwilling to accept losses from a cheaper price.
"Looking back over the last 30 years, the number of sales usually reaches a low point in June before increasing every month from now until November," Mr Ingerson says.
"We expect sales volumes to follow that trend again this year, although if the lack of quality listings continues then this may prevent otherwise enthusiastic buyers."
Values in Auckland rose 3.1% in the three months ended July 31, with an average sale price of $656,846. Values are up 6.3% on an annual basis.
Values in Christchurch increased 2.1% in the three months, with an average sale price of $385,564. Values are up 5.8% over the past year, sitting 1.9% above the previous market peak in 2007.
There was "no change" in Wellington property values in the three months, while the average sale price rose 0.2% to $512,580. That is 5.7% below the previous market peak.
Values in the provincial centres have remained "relatively stable" over the past year, with values lying within a 1.5% band. The exceptions are Napier, down 1.7%, and Palmerston North, up 2.2%.
Gisborne has dropped 4.2% over the past year and is now 25% of the 2007 market peak.
Hannah Lynch
Thu, 09 Aug 2012
Thu, 09 Aug 2012
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Supply shortage sends house prices close to 2007 peak
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