This article is from the Australian Property Journal archive
RESIDENTIAL property values across New Zealand have remained stable, according to statistics.
According to QV Valuations, house values are 6.1% above the same time last year for the month of April. The annual change in values is the same as reported last month and reflects stable values in both recent months and this time last year.
QV Valuations’ Glenda Whitehead said values increased steadily from May to November last year and the current stability means the annual change will reduce in the coming months as the gap between last year’s values and this year’s closes.
Nationally, values remain 3.9% below the market peak of late 2007.
The national average sales price for the three months to April decreased further to $NZ405,235 from $NZ407,133 in March.
“The property market remains relatively subdued as both buyers and sellers carefully consider their positions. There is little urgency, and many people are waiting to see the exact nature of the changes in the May budget before deciding their next move.
“Sales activity in April was low, not unexpected with Easter and the school holidays consuming the greater part of it. We are also seeing fewer properties being put on the market, which is also a normal trend for this time of year,” she added.
Whitehead said the market remains mixed with houses in some areas and price bands showing good demand and value growth, whilst other parts of the market remain subdued with falling values.
Values across the Auckland area are 9.5% above last year, back slightly from the 9.9% reported last month. Hamilton values are 2.7% above last year and Tauranga 0.6%. In the Wellington area values are 7.1% above last year, slightly up from the 6.6% reported last month. Christchurch has remained stable at 6.9% above last year, and Dunedin has increased slightly to 7.5%.
There is more variability in provincial centre values compared to last year. Napier (6.4%), New Plymouth (7.2%), Palmerston North (6.9%) and Nelson (6.7%) have grown the most over the pat year, although most of that growth was during 2009 rather than in recent months. Gisborne (2.5%), Hastings (3.6%) and Invercargill (5.0%) have shown moderate growth over the past year. Values in Wanganui are only 0.4% above last year, values in Whangarei are equal, whereas in Rotorua (-1.2%) and Queenstown Lakes (-0.3%) values are below this time last year.
Whitehead said over the coming months market activity will in part be dependent on how people react to changes in the budget.
“If confidence returns then we may see an increase in activity during the winter months.
“However there is also the likelihood of interest rate rises in the middle of the year which will keep pressure on borrowers,” she concluded.
Australian Property Journal
