Wellington Scoop

Wellington housing values up 9.8% in a year

Press Release – QV Valuations
The latest monthly QV House Price Index shows nationwide residential property values for November increased 6.4% over the past year which is a much faster rate of increase than last month’s annual growth of 3.9%.

Values rose by 3.6% over the past three months which is also much faster than last month when the market slowed to a quarterly growth of 0.9% and the nationwide average value is now $664,485 which is 60.4% above the previous market peak of late 2007.

Residential property value growth across the Auckland Region was down 0.5% year on year which is the slowest annual rate since March 2011 but values ticked up over the past quarter rising by 0.4%. The average value for the Auckland Region is slightly higher than last month at $1,045,741 and values are now on average 91.4% higher than the previous peak of 2007.

QV National Spokesperson Andrea Rush said, “Nationwide value growth has surged 3.6% over the past three months led by stronger growth in Wellington, Dunedin and many other regional centres around the country.”

Values across the whole Wellington Region rose 9.8% in the year to November and 2.6% over the past quarter and values are now 36.3% higher than the previous peak of 2007 and the average value is now $621,289..

Wellington City increased by 9.7% year on year and 3.4% over the past three months and is the average value there is now $749,870. Wellington – North up the most, increasing by 5.3% over the past three months alone.

Meanwhile values also continue to rise strongly in Upper Hutt up 14.1% year on year and 4.0% over the past three months; Lower Hutt rose 13.5% year on year and 1.6% over the past quarter; Porirua rose 13.0% year on year and 2.6% over the past quarter as is Kapiti Coast up 16.0% year on year and 3.9% over the past three months.

QV Wellington Senior Consultant, David Cornford said, “Listing numbers have increased over the past month providing buyers with a bit more choice however supply is still tight and a sellers’ market prevails.”

“Strong prices are being achieved and we are still seeing value growth in the market however this is much more moderate compared to 2016.”

“Market activity has picked up over November however it remains subdued when compared to the same time last year”

“A number of property investors we have spoken with are evaluating their property portfolio after the government’s announcements around minimum rental standards, negative gearing and improved tenants’ rights.”

“There is strong upwards pressure on rents throughout the region with demand out stripping supply for rental properties.”

“Demand for new builds and vacant land remains strong, and first home buyers continue to be active in the market.”

The full set of QV House Price Index statistics for all New Zealand for November can be downloaded by clicking this link:

QV House Price Index (HPI) for November 2017.

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