Strong property value showing for the provinces

25 provincial areas exceeded 15% annual property value growth, Quotable Value’s January figures show.

Monday, February 12th 2007, 10:40AM

by The Landlord

The strong showings came from Hutt City at 17.3%, Gisborne at 26.5% and Wanganui at 14.8%.

In most of these areas, the average sale price is $150,000 to $250,000, compared with a New Zealand average sale price above $300,000” says QV spokesperson Blue Hancock.

The average New Zealand sale price increased from $348,886 last month to $356,028 this month.

“Strong migration figures, a stable cash rate and lower unemployment figures are all contributing to a continuation of higher prices in the residential market.”

Nationwide, residential property values increased 8.8% in January says QV, down marginally on the 9.2% annual growth reported in December 2006.

“Looking back over 2006, we reported annual increases of 16.8% in January last year. The 8.8% reported this month, while still a healthy rate of increase, does reflect a gradual easing in pressure on property prices” Hancock says.

Of the main urban centres, Hamilton rose from 9.7% last month to 11.7% this month. Wellington, Christchurch and Dunedin showed growth rates consistent with those reported in December 2006, while Auckland’s eased slightly.

Main Urban Areas Commentary:
Auckland:
Auckland’s property values increased by 4.5% in January, but the breakdown within its areas differs significantly. Auckland Central, which encompasses from Pt Chevalier across Ponsonby, Herne Bay and to the CBD area and Parnell, showed just 0.1% growth, with an average sale price of $502,892. This area encompasses both high value property within the suburbs, and the high sales volume but lower value apartments in the CBD. The Eastern Bays incorporating Epsom, Remuera and the Bays through to Glendowie showed more buoyancy at 7.5%. The remaining areas showed 5.4% growth and an average sale price of $459,053.

Rodney’s growth has eased to 9.1% with an average sale price of $483,012. North Shore’s value growth has been steady throughout the latter half of 2006, now showing year on year growth of 6.1% with a slight jump in the average sale price to $545,417.

Manukau City showed overall growth of 9.7%. The north west area encompassing Mangere Bridge, Mangere, Otara and Papatoetoe was the strongest performing area at 14.4% with east and central areas 7.5% and 8.5% respectively.

Waitakere City has shown year on year growth of 7.2%. “Demand in the cheaper areas such as Ranui, Glen Eden, and Kelston appears to be slowing, while medium to high value areas like Te Atatu, Henderson, West Harbour and Titirangi are still attracting fairly good demand,” says Glenda Whitehead of QV Valuations.

Hamilton:
Hamilton’s property values showed growth of 11.7%, up from 9.7% reported in December 2006. The average sale price in Hamilton was $328,623.

Tauranga:
Tauranga property values grew 2.4%, down from 3.4% reported last month.

“January is the first month since September 2006 that the annual growth rate in Tauranga property values has decreased,” says Christopher Boyd of QV Valuations.

“Although the average house price has decreased slightly from last month, it was still very high at $407,926.”

Wellington:
Property values in Wellington City increased annually by 9.7%, up from 9.3% reported last month. The average sale price for the city was $464,895.

“The Hutt Valley leads the market with annual value growth over 17%, while Kapiti and Porirua are holding at about 13%. Wellington City, though at a lower rate of 9.7%, has an increase of $15,000 in the average sale price from last month, second only to Kapiti with a $19,000 increase,” says Max Meyers of QV Valuations.

Christchurch:
Christchurch property values increased 9% over the past year. This is the third consecutive month QV’s figures show an annual increase of 9%.

Dunedin:
Dunedin residential property values increased by 6.2%, up slightly from 6.0% last month. The average sale price in Dunedin was $263,111.

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