The latest monthly QV Residential Price Movement Index shows that nationwide residential property values for February have increased 6.4% over the past year and 3.1% over the past three months. This means they are now 20.3% above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 5.6% and values are now 2.9% above the 2007 peak.
The Auckland market has increased 13.0% year on year, 5.0% over the past three months and 43.8% since 2007. When adjusted for inflation values are 12.2% over the past year and are 23.0% above the 2007 peak.
QV National Spokesperson Andrea Rush said, “The seemingly insatiable demand for Auckland property has resulted in the upward trend steepening on the QV Residential Price Movement Index.”
“Values in Hamilton, Tauranga, Wellington, Christchurch and Dunedin are all showing moderate increases but nothing compared to the pace of Auckland values which continue to surge ahead.”
“The new build market across the country is in high demand, particularly amongst first home buyers, as the LVR requirement for a 20% deposit does not apply to “turn key” home and land packages, making it easier to secure finance to a buy a new build than an existing home.”
“The listings shortage appears to have eased a little as more homes have come onto the market during February, however sales and mortgage approvals are also up since January.”
Residential property values in most provincial centres have risen or been steady over the past three months apart from a few parts of the lower North Island as well as the West Coast of the South Island where values are flat or have decreased slightly.
In the North Island, areas close to Auckland are seeing values rise faster than other provincial areas around the country most likely due to the ‘Auckland effect’ as buyers look outside the super city for more affordable property. These include Hauraki District up 6.5% since December; the Waikato District up 3.9%, the Kaipara District up 3.0%; and the Thames-Coromandel District up 2.3% over the past three months.
In the South Island, the areas showing the largest residential property increases over the past three months are Invercargill City where values rose 2.3%; Queenstown Lakes District also up by 2.0% and the Tasman District where values increased by 1.7%.
Hastings residential property values dropped by 6% from $301,57 in February 2014 to $299,904 in February this year.
Wairoa district was also down dropping from $153,051 to $146, 913 during the same time period.
Central Hawkes Bay residential property values were up from $200,450 in February 2014 to $208,515 in February this year.
Napier City property values were also up on last year at $329,604 which was a 1.9% increase.