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Residential property values rise by 8.6% – even more in Kapiti

Report from QV Valuations
The latest monthly QV House Price Index shows nationwide residential property values for February increased 6.5% over the past year and 1.2% over the past three months. Values across the Wellington region rose 8.6% in the year to February and 3.1% over the past quarter and the average value is now $640,737.

Wellington City increased by 7.6% year on year and 1.9% over the past three months and is the average value there is now $764,020.

Values in Upper Hutt rose 8.5% year on year and 1.0% over the past three months; Lower Hutt rose 7.7% year on year and 0.5% over the past quarter.

Porirua rose 9.6% year on year and 2.1% over the past quarter.

Kapiti Coast saw the greatest annual increase in the region with values there rising 13.9% year on year and 1.5% over the past three months.

QV Wellington Senior Consultant, David Cornford said, “The Wellington market is still seeing plenty of activity although the rate of value growth has slowed a bit.”

“There is a lack of supply in the market particularly in Wellington City itself and Porirua, which is keeping prices up for those properties that are selling on the market.”

“However, the Hutt Valley is a bit flat but first home buyers remain very active accounting for 42.0% of sales in Lower Hutt and in 30.0% of all sales across the Wellington region so they are a big portion of the market.”

“Investor activity is pretty flat at the moment and yields have increased slightly due to strong rent growth and less promise of quick capital gains.”

“There is a shortage of rental property and this has driven rents up and it’s become very difficult to get a flat with potentially 20 or 30 or more people competing for the same property.”

“In many cases, before landlords even advertise their property for rent they are receiving enquiries from people desperate to find accommodation. A number of flats are renting without even being advertised.”

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