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Going up: Wellington property values increase 8.5% in a year

Press Release – QV Valuations
The winter chill has put the brakes on value growth and market activity, but annual growth rates remain solid as key market drivers remain prevalent. Property values across the Wellington region rose 8.5% in the year to August and increased 0.9% over the past quarter. The average value is now $656,676.

Wellington City values increased 7.4% year on year although they dropped by 0.2% over the past three months and the average value there is now $778,386.

Values in Upper Hutt rose 10.5% year on year and 2.7% over the past three months; Lower Hutt rose 4.9% year on year and 1.5% over the past quarter; Porirua rose 7.2% year on year and 0.7% over the past quarter.

The Kapiti Coast rose 8.3% year on year and 0.5% over the past three months.

QV Wellington Senior Consultant, David Cornford said, “Low listings coupled with a record low interest rate environment continues keep values stable.”

“The continued trend of rising rents is also putting pressure on people to purchase property. This is resulting in increased buyer competition, particularly in the low-to-mid priced section of the market in areas such as the Hutt Valley and Porirua where there is a strong presence of first home buyers. This in another factor contributing to modest value increases.

“As affordability constraints become increasingly relevant, we’re seeing growing demand for different types of property. Two-bedroom, semi-detached units are selling particularly well, as they provide a more affordable option for young professionals or families. New builds or one and two bedroom modern apartments are also proving popular for the same reasons.

“With Spring arriving, I’d anticipate more properties to come into the market which will provide buyers with more choice and enable them to be more selective. Despite this likely increase in market activity, I am anticipating more subdued value growth in coming years as affordability challenges put the brakes on.”

For a full breakdown of the QV House Price Index figures for August, please click here

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