Wellington Scoop

Wellington house values up 4.8%, Upper Hutt up 9.7%

Press Release – QV Valuations
The latest monthly QV House Price Index shows nationwide residential property values for June increased 5.7% over the past year, while values dropped 0.3% over the past three months. The nationwide average value is now $675,680. When adjusted for inflation, the nationwide annual increase drops slightly to 4.6%.

Values across the whole Wellington Region rose 4.8% in the year to June although they dropped 0.8% over the past quarter and the average value is now $639,112.

Wellington City values increased 4.3% year on year but dropped 1.3% over the past three months and the average value there is now $758,020. Meanwhile, values in Upper Hutt rose 9.7% year on year and 1.9% over the past three months; Lower Hutt rose 5.0% year on year and 0.6% over the past quarter; Porirua rose 10.8% year on year and increased by 2.8% over the past quarter. Finally, the Kapiti Coast rose 9.6% year on year and 1.4% over the past three months.

QV Wellington Senior Consultant, Paul McCorry said, “Value growth continues to moderate as we enter the winter months. Sales activity is subdued, with low listing numbers particularly in established inner city suburbs. Northern areas continue to lead the way, with almost a quarter of all Wellington City properties for sale located in the suburbs of Churton Park, Tawa, Johnsonville and Newlands. These suburbs continue to appeal due to their relative affordability and proximity to the city.”

“Demand remains high from first home buyers, with many taking advantage of less competition at open homes and auctions through winter. This is particularly evident in more affordable areas such as Hutt City and Porirua, where first home buyers account for 36% of all activity according to recent CoreLogic Buyer Classification data.”

“In the apartment market, demand remains steady and developer confidence will be buoyed by the recently announced changes to the Overseas Investment Amendment Bill. This change allows overseas investors to buy and hold apartments in developments with greater than 20 units, assisting in providing sufficient pre-sales to secure funding. In Wellington, sales and development activity is focused on one and two bedroom units in the central city, however we’re also seeing plenty of demand in the Hutt Valley. Petone, in particular, is proving popular due its access to strong transport links into the city.”

“Overall, despite a slowdown in the rate of value growth, market conditions remain strong with key indicators such as low interest rates, strong net migration and demand still far outweighing supply in terms of new development. With these factors prevailing, I would anticipate stable market conditions to remain over the quieter winter months.”

Nelson residential property values rose 5.9% in the year to June but dropped 0.5% over the last quarter. The average value in the city is now $563,287. Meanwhile values in the Tasman District have also continued to rise, up 7.3% year on year and 2.0% over the past three months. The average value in the Tasman district is now $574,000.

QV Nelson Property Consultant, Craig Russell said, “In a relatively subdued market, entry-level properties valued up to $500,000 continue to attract plenty of demand particularly from first home buyers. Multiple offer situations are now not as prevalent as they have been but contract prices still remain firm.”

“Inventory has dropped over the winter period with days to sell increasing slightly – something that’s not unusual during the winter period – ‘lifestyle’ properties continue to sell well. Properties less than two hectares are proving very popular, as they are considered more manageable and appeal to a wider market.”

“Stand-alone properties in Stoke and Richmond continue to attract plenty of interest, particularly from families whereas retirees prefer low maintenance townhouses or flats on smaller sections.”

“I would anticipate that inventory will increase over the coming months with values continuing to stabilise”

Hawkes Bay
Napier values rose 15.7% year on year and 3.0% over the past three months. The average value in the city is now $512,519. Hastings values are also continuing to rise up 8.5% year on year although they were down 0.3% over the past three months. The average value there is now $455,678. The Central Hawkes Bay has also seen values rise 13.7% year on year although they did decrease by 2.5% over the past three months and the average value there is now $319,700.

QV Hawkes Bay Property Consultant Nicola Waldon said, “We’re seeing a continued slowdown in the rate of value growth and market activity, with fewer listings during the usual winter slowdown period.”

“After a sustained period of growth, sellers – in some cases – are struggling to adjust their price expectations. We’re seeing many properties being re-listed with asking prices or specifying a minimum price offer. Our data supports this, with the average time taken to sell increasing compared to recent years.”

“Despite this, with overall annual value growth and rents remaining relatively high, investors and developers still appear to be achieving good returns. We’re still seeing keen interest from out of town buyers and from those looking to renovate existing properties with a view of achieving future capital gains.”

Provincial centres
In the North Island, Ruapehu increased the most over the past quarter, up 5.8% followed closely by Tararua and Kawerau. We’re seeing the rate of growth slowdown in many provincial centres over the past quarter, even for regions such as Central Hawkes Bay and South Taranaki which show strong annual value growth.

In the South Island, Waimate showed the strongest quarter growth, up 4.8%. Dunedin continues its strong growth, particularly southern, coastal and Peninsula areas which are up 3.7% over the past quarter on top of strong annual growth. The biggest drop in quarterly value was in Southland, down 10.6%.

Annual Change in Values

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