This article is from the Australian Property Journal archive
NEW Zealand's national residential property price reported a 0.1% growth over the past to June 2008, according QV Valuations.
The figure is down on the 2.4% growth reported in May.
According to QV Valuations, the average NZ sale price increased slightly to $NZ392,436.
QV Valuations’ Glenda Whitehead said property values are clearly on the decline across most of NZ ‘s major cities and main urban areas.
“The Wellington region, parts of the Auckland region, and some provincial areas are keeping the national figure positive, but at a meagre 0.1% growth. The long anticipated correction in the market, following the years of boom times, is with us,” she added.
Whitehead said with market activity slowing dramatically, consumer confidence knocked by increasing interest rates, fuel and food prices, the trend of falling property values will continue.
“The traditional upsurge in activity in the spring market may reverse the mood of the winter market, however the issue of home affordability may dampen any resurgence in the market for a while to come.
“QV’s House Price Index indicates that property values are now less than the same time last year in many areas even though average sales prices have increased. Our index methodology removes distortions created by averages and medians where there is higher activity in one part of the market,” she continued.
Across the Auckland area property values are 1.0% down compared to the same time last year, driven by a 2.4% year on year decline in Auckland City, and a 0.4% decline in both North Shore and Manukau.
There are still annual value increases of 1.5% in Waitakere and 0.6% in Papakura, although this rate of growth has been steadily decreasing in recent months. Hamilton City’s values are 2.5% down on the same time last year, and Tauranga 1.2% down.
The Wellington region is still showing a slight increase on last year at 1.1%, although this is down from the 3.4% reported last month. Christchurch property values are -0.2% compared to last year, and Dunedin has declined further to -4.3%.
All of the main provincial centres are showing annual growth rates less than those reported last month. Property values in Whangarei 1.1%, Rotorua 1%, Wanganui 1% and Invercargill 9.9% are all still above last year, but continue to trend downwards. Gisborne -3.2%, New Plymouth -3.8%, Palmerston North -1.5%, Nelson -0.1% and Queenstown Lakes -1.6% are now showing declining year on year property values.
Australian Property Journal
