Auckland values up 20%+ on last year
Residential property values just keep raising in Auckland – with new QV data showing increases of 20.4% over the past year, 5.6% over the past three months and 60.1% since the 2007 market peak.
Tuesday, September 1st 2015, 1:12PM
by Miriam Bell
When adjusted for inflation, values increased by 20.1% year-on-year and by 36.7% since 2007.
This means the average value for the Auckland region is now $874,851.
With Auckland values leading the way, QV’s latest House Price Index shows that nationwide values increased by 11.3% over the past year.
Nationwide values rose 3.9% over the past three months and they are now 29.0% over the 2007 peak.
When adjusted for inflation, year-on-year values were up by 11.0% and sit 10.2% above the 2007 peak.
This leaves the average national value at $534,331.
QV spokesperson Andrea Rush said the ongoing rise in Auckland’s values was impacting on North Island markets close to the SuperCity.
“In Hamilton, the upward trend in values is now accelerating, while values in Tauranga, Whangarei, Hastings, and the Hauraki District are continuing to rise.”
Hamilton values saw an increase of 10.3% year-on-year and 5.7% over the past three months, which left the average Hamilton value at $400,811.
Rush said Auckland’s high prices and lower yields appeared to be encouraging investors to look to regional centres around the country for investment properties
“The new LVR rules, set to come in over the next couple of months, may also be a factor incentivising this activity.”
While QV’s Wellington valuer reported increased interest in Wellington properties from Aucklanders, this is not yet reflected in the city’s values.
With an increase of 2.4% year on year and 0.3% over the past three months, which leaves the average Wellington value at $546,914, the capital’s values remain relatively flat.
Christchurch’s values were also relatively flat with an increase of just 0.4% since May and 3.1% year-on-year.
Rush said New Zealand’s housing market was showing no sign of impact from recent events on the global economic landscape – like the dramatic fall in China’s share market.
Meanwhile, in Auckland itself, ongoing strong population growth and lack of supply continue to drive rapid increases in value and high sales volumes.
Activity is particularly high at the lower end of the market for properties under $1 million, Rush said.
“For example, Waitakere City values has surged as buyers realise how relatively affordable homes there are compared to some other parts of the city.”
Waitakere City values were up by 7.1% since May. This has left the average value at $703,242, which is 23.9% higher than a year ago.
Values in Manukau City and the Papakura District also recorded significant increases over the past three months.
QV Operations Manager Northern Jan O’Donoghue said there is evidence of high levels of speculation in the Auckland market with more examples of rapid on-selling.
“More than 2000 homes have been brought and sold more than once over the past 12 months. Often nothing has been done to improve these properties at all and speculators are just on selling it and taking the capital gain.
“Rapid on selling can be a sign that some speculators may believe we are close to reaching the top of the market and decide they have made enough profit.”
| « Auckland median price down, national median price up | NZ ranked 5th in global house price index » |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
