The QV residential property index shows that nationwide values increased in June, driven largely by the Auckland market.
"Nationwide property values increased in June after previously remaining relatively stable for several months. The gap in values between June this year and last year has closed to only -0.9 percent, and values are now 5.2 percent below the market peak of late 2007" said QV.co.nz Research Director, Jonno Ingerson.
"Much of the gain in Nationwide values can be attributed to increases in the Auckland area. Apart from a minor hiccup in March values have increased by over two percent in greater Auckland since January" said Ingerson.
"Across the wider Auckland area values are now 1.4 percent above last year and only one percent below the previous market peak of late 2007. There is variability across the Supercity with the Manukau area being more or less stable over the past three months, while North Shore and Waitakere have increased modestly. In what used to be called Auckland City increases since January mean that values are now at their highest level ever, currently sitting 0.7 percent above the previous market peak of late 2007" said Ingerson.
"These gains in Auckland City are due to a range of factors including the lack of quality properties for sale, strong demand for established character locations and good school zones, and the perception that purchasing in central Auckland is a safe investment" said Ingerson.
"Values in Hamilton and Tauranga have levelled off in recent months, with Hamilton now 3.6 percent down on last year and Tauranga 1.8 percent down" said Ingerson.
Ingerson said "the Wellington area is the only main centre where values have continuing to decline in recent months. Values have dropped over a percent since January, and now sit 3.3 percent below the same time last year. Uncertainty around restructuring in the Public Sector may be causing some home owners to take a more conservative approach to the property market".
"The low sales volumes and patchy activity across large parts of Christchurch for several months now means that our standard index may not be comparable to the index pre earthquake. As a result we are not publishing an index for Christchurch until we have more certainty around the validity of the results" said Ingerson.
"The recent CERA announcements of red and green zones helps give some certainty to some people in Christchurch, enabling them to evaluate their options and make property decisions. This will likely to lead to a further increase in demand for vacant sections and houses in the undamaged parts of Christchurch and surrounding areas" said Ingerson.
"Properties in undamaged parts of Christchurch tend to be selling for around their pre- earthquake values, with little sign that prices are either significantly up or down" said Ingerson.
"In Dunedin values have been a little variable since the New Year, but have been generally flat. Due to the monthly variability both this year and last year the annual change in values is also varying from month to month, but values are currently 3.5 percent below last year" said Ingerson.
While unrelated to the QV index, and a less reliable measure of value change, the average New Zealand sales price over the last three months is $412,746 up from the $404,057 reported last month.
Values in many provincial centres have increased over the last month, leading to a closing of the gap between this year and last year. Whangarei (-4.1), Gisborne (-3.1), New Plymouth (-3.3), Wanganui (-4.0), Palmerston North (-2.8) and Invercargill remain the furthest below last year. In Napier (-2.1) and Hastings (-1.4) values are still a little below last year, while in Rotorua (-0.2), Nelson (-0.2) and Queenstown Lakes (0.1) values remain similar.
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