Wellington Scoop

Wellington property values rise 8.6% in 12 months

Press Release – QV Valuations
The latest QV House Price Index shows nationwide residential property values have increased steadily over the past year by 3.0% and by 0.7% in the three months to February. The nationwide average value is now $686,050.

QV General Manager, David Nagel said: “We’re seeing some interesting trends at the suburb level, where affordability constraints are seeing values slow in many higher value areas. For example, the wider Wellington region continues to see a general slowdown in the rate of growth and it’s the more affordable areas, such as Upper Hutt, which are seeing some of the highest rates of growth as first home buyers and investors seek value for money.”

Values across the whole Wellington Region rose 8.6% in the year to February and increased 2.0% over the past quarter and the average value is now $699,183.

Wellington City values increased 7.9% year on year and by 2.3% over the past three months and the average value there is now $824,029. Meanwhile, values in Upper Hutt rose 13.9% year on year and 5.7% over the past three months; Lower Hutt rose 9.1% year on year and by 0.4% over the past quarter; Porirua rose 8.1% year on year and by 1.0% over the past quarter. Finally, the Kapiti Coast rose 6.9% year on year and 1.9% over the past three months.

QV Wellington Senior Consultant David Cornford said: “There continues to be steady demand in the Wellington region and value growth is still evident at the lower-to-mid section of the market.”

“The affordable areas, in particular Wainuiomata, Naenae, Taita, Porirua East and parts of Upper Hutt, continue to see the greatest value growth in the region, with semi-detached flats are proving popular with first home buyers and investors.”

“Supply is still very limited and this, combined with low interest rates, is underpinning strong property prices in the region.”

“Properties priced in the 1.5 to 2 million dollar range continue to sell readily provided they are well located and well presented, however there is less price pressure at this end of the market.”

“Rents continue to increase across the region and securing rental accommodation is a challenge, particularly for those people who don’t have an excellent rental history.”

“Investors continue to be active in the market despite recent recommendations by the tax working group and new rental minimum standard rules.”

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

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