Mixed bag for regional performance

Three regions have experienced a drop in house prices compared to a year ago, ASB’s latest regional economic scoreboard shows.

Friday, November 21st 2014, 12:00AM

by The Landlord

The report is released each quarter and tracks regions’ performance on population, employment, retail, construction, car sales and house price measures.

Canterbury was dominant in the September quarter, and has held the number one spot for the last four quarters. Its house prices were up 5.2% year-on-year and construction was up 27%. Its population grew 2%. The report said the only measure Canterbury was ahead on was employment growth, where it reported 11% growth, ahead of second-place Waikato's 8%. "But if there’s one measure that it’s good to be number one for, it’s employment growth."

Auckland was in second place with a tight housing market and population growth stimulating construction. Auckland’s prices were up 10.3%, its population 2.3% and construction 18%. “House price appreciation remains stronger in Auckland than anywhere else, while turnover has declined by more than elsewhere. The tight housing market and the region’s strong population growth is stimulating construction,” the report said.

Marlborough had the biggest year-on-year drop in prices, down 2.4% compared to the September 2013 quarter. But construction there was up 22%.

On the West Coast, the population dropped 0-.6%, prices were down 2% and construction was down 19%. “The housing market and retail trade on the Coast face the headwind of a shrinking population on top of the other tough challenges on the Coast in recent years," the report said.

Manawatu-Wanganui prices dropped 1.5% and Hawke’s Bay’s were down slightly, by 0.5%.

After Auckland and Canterbury, Otago had the third-biggest increase in house prices, up 3.5%.

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