House prices rise 2.4pc over December quarter

By NZPA

Tuesday 18th February 2003

House prices have risen 2.4 percent nationally over the December quarter, according to Quotable Value NZ.

Nelson prices outshone the rest of the country, up 5 percent over the December quarter, while in the urban centres, Auckland houses were 2.7 percent dearer, and Wellington prices rose 2.3 percent.

QV on-line product manager Nikolai Shipkov said prices had risen for the sixth consecutive quarter, confirming the rising demand for housing.

"The strong growth in prices over the quarter, even in the face of lower sales volumes indicates a very strong start to the 2003 housing market. The property price growth is as strong as was experienced in the mid-1990s and we expect they will continue to grow.

"The coming quarter should reveal an increase in sales volumes and subsequently sales price growth should remain strong."

Over the 2002 year, New Zealand house prices rose 10.4 percent. Nelson houses had the strongest price rise -- more than 22 percent -- followed by Auckland City (19 percent), Invercargill (16 percent), Napier City (14 percent), North Shore City (13 percent), and Wellington (11 percent).

Tauranga and Manukau City tied at 10 percent and growth was relatively lower growth in Waitakere City (8 percent), Hamilton, Porirua, Upper and Lower Hutt (6 percent), Dunedin and Papakura (5 percent) and Palmerston North (4 percent).

Volumes of house sales were generally down across the North Island and up in the South Island. Volumes in the South were highest in the Waimakiriri and Ashburton.

Higher house prices and lower volumes were also seen in the rental market.

Comments from our readers

No comments yet