News from Quotable Value
Property values in the wider Wellington Region have decreased 0.4% over the past three months. However they have increased 1.8% year on year. Wellington City is down 0.6% over the past three months but is up 2% since June last year. Wellington West is down 2.5% over the past three months and 0.1% year on year.
Lower Hutt values have decreased 1.3% in the past three months but are up 1.4% year on year. While values in Upper Hutt increased 0.2% over the past three months and are up 0.5% year on year. Values in the Kapiti Coast District have also increased 1.9% over the past three months and 3.3% year on year.
QV Wellington Registered Valuer Kerry Buckeridge said, “The region has been fairly quiet, but there has been modest growth in some areas while values in the Hutt seem to be tapering off a bit.
“There is a slight drop in the listings in Wellington which is normal for the winter season and is helping real estate agents to sell some houses which have been on the market for a while so that’s positive.
“There is no pressure in the market to drive values along. People are being very careful and cautious with their property decisions. It is noted that average days to sell have now reportedly increased to in excess of 40 which is very high for Wellington.
“In the city however, there are not many good properties under $400,000 which is beyond the means for many first home buyers – especially with the higher deposit requirements imposed by the LVR caps. We are seeing some first home buyers finding ways around the caps, for instance by getting parental guarantees.”
BusinessDesk report by Pam Graham
Nationwide, values rose 2.1 percent in the three months, accelerating from a 0.7 percent three-monthly pace in May, according to state valuer Quotable Value. On an annual basis, the pace of property value gains continued to slow, rising at an 8 percent annual pace in June, and compared to an 8.2 percent in May. Values are still 15 percent above the previous peak of late 2007.
“The nationwide index is still increasing but the picture around the country is mixed,” Andrea Rush, QV’s national spokeswoman said in a statement. “Residential property values in Auckland and Christchurch are still increasing at a similar rate to what they were last June.”
The Reserve Bank introduced loan-to-value mortgage lending restrictions on Oct. 1 last year on concern rapidly accelerating house prices in Auckland and Christchurch may lead to an asset bubble and cause financial instability. Property value growth had slowed earlier this year, and the central bank has hiked interest rates three times to cool the economy as inflation accelerates.
Today’s figures showed the Auckland market increased by 12.3 percent year-on-year and values are up 31.4 percent since 2007. Values rose 2.7 percent in the past three months. Manukau East was the strongest performing part of Auckland, clocking up a 4.3 percent rise in the past three months. Waitakere values rose 2.3 percent.
Property values in Christchurch have increased 2.5 percent in the past three months and 7 percent year-on-year and are 21.1 percent above the peak of 2007. The Selwyn and southwest parts of the district are performing the best. Liquefaction was a problem on the eastern side of the city when earthquakes struck.