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Auckland's average home value cracks $800,000 - QV

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Fuseworks Media
Fuseworks Media

The latest monthly QV Residential Price Movement Index shows that nationwide residential property values for April have increased 8.3% over the past year and 2.6% over the past three months. This means they are now 22.4% above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 8.2% and values are now 5.0% above the 2007 peak.

The Auckland market has increased 14.6% year on year, 4.3% over the past three months and 48.1% since 2007. When adjusted for inflation values are 14.5% over the past year and are 27.0% above the 2007 peak.

QV National Spokesperson Andrea Rush said, "The steepening of the national index is indicative of the sharp rise in Auckland values over the past six months."

"While Hamilton, Tauranga, Wellington and Christchurch have continued to show a steady, moderate rise in values, Auckland has continued its rapid rise, with many areas seeing double digit increases in values since November."

"Dunedin is the only main centre where values decreased slightly since February and the housing market there along with many other provincial towns around the country is showing flat or decreasing home values as the LVR restrictions continue to make it difficult for first home buyers to enter the market."

"The QV Residential Price Movement Index shows the average value for the Auckland Region has now broken into the $800,000s."

"With net migration at a record 54,000 and still rising and 50% of migrants moving to Auckland home values in the Super City are likely to remain high and keep rising during 2015 as supply continues to outstrip demand."

Auckland

The Auckland region continued to see a fast paced rise in residential property values with the number of sales in March reaching levels not seen since 2007 and values rising very quickly across the city.

Auckland City home values were led by Auckland City-South which continued to see massive increases - up 5.5% over the past three months and a whopping 19.2% year on year. Values there rose 13.8% since November alone showing how much the market has moved just in the past six months. Auckland City-East values were up 3.3% since February and 15.5% year on year. Auckland City-Central values were also up 5.0% over the past three months 11.2% year on year.

Waitakere City values continued to surge ahead, up 5.7% over the past three months, 16.4% since April last year and values there are now 51% higher than during the peak of 2007.

In Manukau, Manukau-East values rose 5.3% over the past three months, and 13.6% year on year; Manukau-North West values also rose by 4.7% over the past three months and they were up 17.6% year on year; while Manukau-Central values 4.9% since February and 13.6% year on year.

On the North Shore, values in North Shore-Onewa values rose 4.3 % over the past three months and the highest year on year increase over the bridge of 16.3%; North Shore-Coastal values rose 4.3% over the past three months and 13.0% year on year; while North Shore-North Harbour values also rose 4.0% since January and 12.1% year on year.

Rodney District also saw values rise but at a slightly more moderate rate. Rodney - Hibiscus Coast rose 3.1% and 7.9% year on year; while Rodney North values rose 2.4% over the past three months and 7.6% year on year; and Papakura District values rose 4.0% over the past three months and 13.6% year on year.

QV homevalue Auckland Valuer James Wilson said, "Buyers are wary of being priced out by further increases in prices so as a result seem to be willing to pay premiums to secure properties."

"Investors are still very active in the market, capitalising on low interest rates, high equity across their portfolios and rapidly rising prices."

"There is strong demand for home and income properties which provide multiple units of income, increasing returns for investors or aiding owner occupiers with mortgage repayments and due to this constructions of minor household units is also becoming increasingly popular."

"Demand for new builds is still very high and is being fuelled by the LVR exemption for new construction meaning you don’t need a 20% deposit to purchase these properties.

"Confidence in the apartment market is evident through the large number of new complexes being constructed across the city and buyers are purchasing off plans to secure apartments within quality complexes to ensure they don’t miss out."

Hamilton and Tauranga

Residential property values in Hamilton City rose by 0.7% over the past three months, 3.3% year on year and they are now 4.0% higher than the previous peak of 2007.

Taking a closer look, home values in Hamilton-Central and North West increased 1.7% over the past three months; Hamilton-North East values rose 1.1%; while Hamilton South East values rose by 0.4%. Hamilton-South West values were flat with a slight increase of 0.1% over the same period.

Values continued to rise in the Waipa District, up 1.6% over the past three months, 6.5% year on year and they are now 8.5% higher than the previous peak of 2007.

While values in the South Waikato continued a downward trend, decreasing 2.7% over the past three months and 1.3% year on year and they are now 22.4% lower than they were in the previous peak of 2007.

QV homevalue Hamilton Registered Valuer, Chris Price said, "There seems to be increased activity from both first home buyers and investors in Hamilton and central city properties continue to be in demand and are attracting multiple offers."

"In Cambridge, high growth is leading to increasing sales price and it’s likely the ‘Auckland effect’ is contributing to this as people look outside the Super City region for areas they can get better value for money."

"However, buyer interest in Cambridge from the United Kingdom which has been a factor in the market has dried up recently after the strong NZ dollar has reduced the buying power of the British pound."

"South Waikato provincial towns such as Tokoroa and Te Awamutu are seeing steady activity but so far this has not led to an increase in values."

"In North Waikato, Huntly East sales volumes have increased, but values remain steady, and in Huntly West a number of rental properties are selling well as these are popular for investors as they have relatively high yields."

"In Pokeno, the ‘Auckland effect’ is still resulting in plenty of new-build activity and the housing development there is approaching its fifth stage well ahead of schedule with further stages been developed for release."

Home values in Tauranga City have risen by 3.9 % over the past three months; 5.8% year on year and they are now 1.3% below the previous peak of 2007.

Values in the Western Bay of Plenty decreased by 0.9% over the past three months but rose 1.9% year on year, and they remain 6.7% below the previous peak of 2007.

QV homevalue Registered Valuer Jessica Videbeck said, "There is very good activity and interest from buyers from out of town for properties in Tauranga, Mount Manganui and Papamoa."

"Approximately 60% of people attending open homes are from Auckland including investors, people who have gotten jobs down here, those planning for future retirement and families looking for more affordable homes."

"Values in the Mount have been increasing for quite some time however beach front property sales while steady are still well below the last peak of the market in 2007."

"Values in Tauranga have started to increase over the past few of months. More properties are selling than and listings are struggling to keep up with demand. Good quality family based homes with a bit of land seem to have had the biggest price increase."

"In the Western Bay of Plenty demand is high for residential property in Omokoroa and the market there is frantically busy and there’s a shortage of listings."Demand is coming from Aucklanders as well as from Kiwis returning from Australia and some Australians are also buying there."

"There’s been a lot of interest and activity in the Te Puke market although so far this has not resulted in value increases. Buyers include locals moving to a larger second home in the area or those from Tauranga, Mt Maunganui and Papamoa looking for more affordable property as well as buyers from Auckland and Christchurch."

Wellington

Home values in the Wellington regions were varied with some increasing, some flat and some decreasing.

Wellington-North values increased 1.3%; Wellington-West values increased 1.6% over the same period; Wellington Central and South where values decreased by 1.2%; while Wellington-East values remained flat with a slight rise of by 0.1%; Upper Hutt values rose 1.8% since February while Lower Hutt also rose by 0.7% over the same period.

QV Homevalue Wellington Registered Valuer Pieter Geill said, "Sales activity in the April has been steady, although not as abundant as in March across the Wellington region."

"In the Hutt Valley good homes continue to sell well, but there has also been some interest across the Hutt Valley for ‘do-ups’ and properties with sub-dividable potential."

"In Lower Hutt, real estate agents are reporting that they are selling more than they can list, especially in lower value ranges, however, buyers are still cautious, and realistic pricing by sellers is important"

"Further changes to KiwiSaver announced on April 1 will give buyers that qualify higher deposits when purchasing new builds."

"This is positive for first-home buyers and new housing developments like the Riverside Gardens development in Taita."

"However, it also has the potential to affect the second-home buying markets, if more first-home buyers are buying new-builds, there may be fewer to purchase existing entry level homes."

Christchurch and Dunedin

Home values in Christchurch City increased 0.3% over the past three months, 4.7% year on year and are now 24.7% higher than in the previous peak of 2007.

A closer looks across the city shows Christchurch Hills values rose 3.0% over the past three months; and the Selywn District was up by 1.4% over the same period; Christchurch East values rose 0.6%, and Christchurch-Central and North decreased slightly 0.2%. Values in Waimakariri District values were also down slightly by 0.3% over the past three months.

QV Christchurch Registered Valuer Daryl Taggart said, "There is still growth in the Christchurch market however we are now seeing some houses sold in recent months at a similar level to where they are this time last year."

"Some properties are still selling well, while others are taking longer to sell and some sellers are finding they need to be more realistic about asking prices."

"The rapid growth experienced in recent years appears to be tailing off suggesting that some areas may have found their peak."

"This is true for appears Waimakariri now that supply is meeting demand in the Christchurch market. With long traffic delays from these outer suburbs many buyers are choosing to pay a bit more and buy closer to the city now more homes are available there."

Home values in Dunedin City as a whole are decreased slightly by 0.5% over the past three months but they are still 0.6% higher than they were in April last year, and 1.9 % higher than they were the previous peak of 2007.

Taking a closer look, Dunedin-Central and North values were flat over the past three months while other places across the city saw slight declines in value over the same period; Dunedin-Taieri values decreased slightly by 0.1%; Dunedin-South were also down by 1.2% and Dunedin-Peninsula and Coastal values have also decreased by 1.1%.

QV homevalue Dunedin Registered Valuer Duncan Jack said, "There have been nominal value changes in the Dunedin market over the past three months."

"However, buyer demand remains steady, as does sales activity, and most well presented homes are continuing to sell quickly while those in need of work tend to take a little longer to move."

"The majority of the buying and selling activity is within the lower value ranges - the under $300,000 part of the market. However there is still good demand for homes in the mid to upper ranges above $300,000 as well."

Provincial centres

Residential property values in many of the provincial centres were more buoyant over the summer months with some areas showing moderate values rises, in others they remained flat or down slightly.

In the North Island, Gisborne District values have increased 1.3% over the past three months, reversing a downward trend seen for some years. Values in neighbouring Wairoa District also rose 1.5% over the same period. Values in the Whangarei District rose 1.5%.

In the South Island, the Clutha District saw values rise 3.8% since February, values were also up in the MacKenzie District by 2.9% and Queenstown Lakes District also saw values climb 2.6% over the same period.

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