Property values climb into positive territory for first time this year: QV

Monday 9th November 2009

New Zealand property values climbed above where they were at the same time 2008 for the first time this year as an ongoing shortage of listed properties continued to make it a seller’s market.

House values rose 0.2% in the 12 months ended Oct. 31, up from a 1.1% decline in the period through September, according to QV Valuations. The average sale price increased to $389,198 from $387,567 a month earlier. “The continued shortage of properties, especially in the main urban areas, is leading to a continued imbalance in the market with more buyers than available properties,” said spokeswoman Glenda Whitehead, in a statement. “As a result, valuers are seeing many properties sell for well above their expected values.”

The housing market has underpinned New Zealand’s economic recovery, with rising net migration and a shortage of new housing combining to stoke demand for property. The national median price for houses has been climbing through much of this year, according to Real Estate Institute data, though the Reserve Bank has talked down the possibility of a new housing boom.

Whitehead said market activity was “below normal spring levels” and with “little evidence of an increase in new listings in most areas” it would be a while before an increase in new building consents would be felt.

“While it is clearly a good time to sell, especially in the main centres, needing to buy again in a market which has a shortage of available properties for sale will also be putting some people off,” she said.

In Auckland, property values increased 2.5% in a rolling three-month period ending Oct. 31 from 0.6% in September, while the average sale price slipped to $506,642 from $507,617.

Hamilton property values decreased 0.1% in the three months ended in October from a 0.9% decline the month before. The average price fell to $342,853 from $344,971.

Tauranga property values fell 1.4% in October from a 1.8% drop in the previous period, as the average sale price retreated to $400,367 from $402,880. In Wellington, values increased 1.6% in the rolling three month period, from a 1.1% annual gain reported in September. The average sale price edged up to $438,584 from $436,633.

Christchurch property values rose 1.3% from a 0.4% gain, with the average sale price rising to $352,962 from $348,922. Dunedin property values gained 4.3% in the three months through October from a year earlier, from the 2.2% annual gain in the period through September. The average sale price increased to $268,253 from $258,103.

More details can be found at Landlords.co.nz

Businesswire.co.nz

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