Press Release – QV Valuations
The latest monthly QV Residential Price Movement Index shows that nationwide residential property values for May have increased 8.2% over the past year, and 0.7% over the past three months.
They are now 13.9% above the market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 6.6% and values remain below the 2007 peak by 2.2%.
Values in the Wellington Region have increased 0.7% over the past three months and are up 1.8% since May last year. Values in the Kapiti Coast District have increased 1.7% over the past three months and 3.6% year on year.
Wellington Central and South values are up 0.6% in the past three months but Wellington City values have decreased 0.2%, Wellington East is down 0.6%, Wellington North is down 0.2% and the West of the city is also down 0.9%. Values in Upper Hutt are also down 1.3% over the past three months while values in Lower Hutt remain the same as three months earlier.
QV Registered Valuer Pieter Geill said, “Buyers are very cautious and particular about what they will buy.”
“There seems to be little urgency to make a decision from buyers as most properties are not getting snapped up quickly and there has been low attendance at open homes. Well presented and located property is still selling well”
“Investors are still active and when a rare bargain such as a mortgagee sale is around, these are jumped on quickly.”
“Some vendors appear to be setting their asking price unrealistically high for this market.”
“As is usual for this time of year, fewer properties are coming to market. One would expect it is a good time to sell due to the limited stock currently for sale.”
“Some people, who may have been first-home-buyers were it not for the LVR limits, continue to rent and save for their first home and this has led to an increase in demand for good quality rental properties, and rental prices are increasing slightly as a result.”