House prices on the up again

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House price increases have rebounded as has the average sale price according to the latest figures from QV.

Monday, March 12th 2007, 12:00AM 1 Comment

by The Landlord

They show a 9.3% growth in residential property values over the past year (calculated over the three months ending February 2007 in comparison to the same period last year). The growth rate increased from 8.8% reported in January 2007 and has returned back to a similar level at the end of 2006 (9.4% in November 2006 and 9.2% in December 2006). The average New Zealand sale price increased from $356,028 last month to $363,017 this month.

“The residential market remains a positive sector to invest in, with growth again strengthening. This is driven by confidence in the market, supported by higher migration figures than predicted, stable interest rates over the last year and strengthening rental returns in several areas” QV spokesperson Blue Hancock says.

Of the main urban centres, Auckland 4.8%, Hamilton 12.2%, Wellington 10.8% and Christchurch 9.8% all reported slight increases in annual growth compared to last month. Tauranga’s growth eased from 2.4% last month to 2%, while the increase in Dunedin’s property values was steady at 6.1%.

Among the provincial cities, increases in growth rates were recorded in Gisborne 27%, Masterton 15.2%, and New Plymouth 9.6%. Porirua and Queenstown growth was stable at 13.1% and 5.6% respectively. Easing growth rates were reported in Lower Hutt 17%, and Upper Hutt 15.7%.

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NEW TOOL: You can now graph and compare house sale prices, and Rents in the Housing Statistics section of Landlords. Click here to see what your property is worth.

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What’s happening in the main centres
Auckland:
Property values in the Auckland region grew 6.9%, up from 6.3% reported for the period ending January 2007. The average sale price for the region was $469,361.

The February statistics for the Auckland region tell a tale of relatively steady activity, with all the cities and districts in the region showing growth levels above those reported last month” QV’s Glenda Whitehead says.

“Our valuers report that since the beginning of the year, we have seen positive activity in the market place. Areas noted by our valuers as having "skipped ahead" over the summer period include Pt Chevalier, Western Springs and yet again Glen Innes”.

“Waitakere City with property values increasing at 7.8% annually, continues to attract home owners and investors, as does Manukau City 10.6%. Auckland City’s property values also increased by 4.8%, up from 4.5% last month.”

Hamilton
Residential property values in Hamilton increased by 12.2% up from 11.7% last month. The city’s average sale price was $330,619.

“Our statistics show that growth in property values has increased for the third consecutive month, supported by increasing demand for residential property” QV’s Richard Allen says. “The main contributor to the increase was the North East of Hamilton, which show an increase of 0.5% in the annual growth rate to 11.5% for this period”.

“The slight increase in growth was reflected in the average sale price in Hamilton, which increased to $330,619 after hovering around the $328,000 mark in December and January. Expectations are that sales volume will increase in March, however we are unlikely to see much growth in sale prices.”

Tauranga
Tauranga’s property values grew by 2.0%, down slightly from 2.4% reported last month. The average sale price for the city was $412,490.

“February is the second month in a row that the annual growth rate in Tauranga property values has eased. It is still too early to suggest a trend of easing prices, especially in light of the rise in the average house price from $407,926 in January 2007 to $412,490 in February,” said Christopher Boyd of QV Valuations.
“Recent market activity has also been dominated by sales in the under $500,000 bracket with little activity reported in the upper market,” Boyd says.

Wellington
Residential property values in the Wellington region increased by 12.8%, up from 12.4% last month. The average sale price for the region was $396,494.

"Within the Wellington region, the market is gathering momentum with higher average sale prices, and persistent price increases. The average sale price increase for the year is $40,800,” QV’s Wellington man Max Meyers says.

“All the cities in the Wellington region show annual growth in double digits with Lower Hutt 17%, Upper Hutt 15.7%, Porirua 13.1%, and Wellington City 10.8%” Meyers says. “The region appears to be benefiting from stable employment conditions resulting in confidence in buyers to pay higher prices”.

Christchurch
Christchurch property values increased by 9.8% over the past year, up from 9% reported last month. The city’s average sale price was $344,259.

“The year on year index for Christchurch improved for the period ending February 2007. The market had been hovering for 3 months at 9% annual growth. This has moved up to 9.8% in February” said Mark Dow of QV Valuations. “This improvement is in defiance of a number of commentators predicting a property slow down based on a number of compelling economic and international property trends”.

“Canterbury and Westland continue to enjoy a healthy property market in terms of both pricing and sales volumes. The optimism for the future of the property market is reflected in the significant number of proposals for new subdivisions in Christchurch, Waimakariri, Selwyn and Hurunui,” Dow says.

Dunedin
Dunedin residential property values increased by 6.1%, a similar growth rate recorded last month (6.2%). The average sale price in Dunedin was $264,173.
“QV statistics show a steady property market in Dunedin, with annual growth around 6% over the past three months. There has been good demand for investment and also in the first home buyers market for properties up to $300,000” said David Paterson of QV Valuations.
“For the period ending February 2007, growth is steady across most areas in Dunedin, with the Peninsular/Coastal part of the city experiencing the highest growth rate of 10.1% this month,” Paterson said.

NEW TOOL: You can now graph and compare house sale prices, and Rents in the Housing Statistics section of Landlords. Click here to see what your property is worth.

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