Wellington Scoop

Wellington property values rise 4.3%

Press Release – QV Valuations
The latest monthly QV House Price Index shows nationwide residential property values for May increased 6.9% over the past year, while values rose 0.8% over the past three months. The nationwide average value is now $677,996. When adjusted for inflation, the nationwide annual increase drops slightly to 5.8%.

Values across the whole Wellington Region rose 4.3% in the year to May although dropped 1.1% over the past quarter and the average value is now $633,759.

Wellington City values increased 3.8% year on year but dropped 1.2% over the past three months and the average value there is now $754,924. Meanwhile, values in Upper Hutt rose 8.6% year on year and 2.9% over the past three months; Lower Hutt rose 5.6% year on year and 1.4% over the past quarter; Porirua rose 8.3% year on year and increased by 0.9% over the past quarter. Finally, the Kapiti Coast rose 11.1% year on year and 1.9% over the past three months.

QV Wellington Senior Consultant, David Cornford said, “It’s very much a continuation of recent themes, with Porirua, and the Hutt Valley showing modest value growth resulting from low levels of supply and steady demand particularly from First Home Buyers. Values in Wellington City are relatively stable and well-maintained properties in desirable locations continue to see multiple offers and strong sale prices.”

“Demand remains high for the region’s low-to-mid value suburbs – in particular Wainuiomata, Stokes Valley and Taita in the Hutt; Ranui, Cannons Creek in Porirua, and, finally, Pinehaven, Totara Park and Wallaceville in Upper Hutt. These suburbs are particularly popular with First Home Buyers due to their relative affordability and also to investors as they offer higher yields compared to more central or higher value suburbs.”

“At the same time, an expanding workforce, changing lifestyle expectations and high property values also mean that one or two bedroom apartments in inner city suburbs remain popular.”

“As we enter the winter months, we are seeing signs of the usual seasonal slowdown although people shouldn’t necessarily be discouraged from selling their property at this time. Properties sold in winter often face less competition, as people can perceive it as a bad time to list. The main exception to this is if your property doesn’t receive much sunlight, in which case you might be best holding off until the warmer months.”

“Recent market events will influence investor activity. The government’s report on meth testing – which concluded that meth testing is not warranted in most cases – will largely put an end to investor fears of facing partial or complete demolition of their properties although this could be offset by the much talked about ring-fencing of tax losses.”

“The recent sale of one of Wellington’s largest blocks of land, Plimmerton Farm, will help ease future supply issues. The development, a 389 hectare site north of Porirua, contains upwards of 1500 sections and 60 lifestyle blocks. Some of these are expected to enter the market in late 2020 after the completion of Transmission Gully and the development is estimated take around 20 years to fully complete.”

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