Average dwelling values are rising throughout the country according to Quotable Value

Average dwelling values are rising throughout the country according to Quotable Value

Average residential property values are continuing to rise throughout New Zealand with the national average dwelling value hitting $722,475 at the end of February, according to Quotable Value (QV).

That was up 2.6% compared to three months earlier and up 5.3% compared to a year earlier.

Only six of the 161 districts included in QV's House Price Index showed declines in average property values in the three months to the end of February - Kaipara -0.1%, Taupo -0.1%, Ruapehu -0.5%, Kaikoura -3.7%, Westland -0.3% and MacKenzie -4.8%, and all of those showed growth on an annual basis.

Of the major centres, the strongest growth in the three months to February was in the Wellington Region +5.4%, followed by Dunedin +4.9%, Hamilton +4.3%, Auckland +1.8%, Christchurch +1.5% and Tauranga +1.0%.

However growth in the major centres was overshadowed by the 19.1% growth in Kawerau's average value in the three months to the end of February, making it the district with the fastest growing property values in the country, followed by Opotiki on 8.9% and Rangitikei on 8.7%.

The cheapest housing in the country is in the Buller District on the West Coast of the South Island, where the average dwelling value is $214,280.

The most expensive district is Auckland City East ,which includes high priced waterfront suburbs such as St Heliers and Mission Bay, where the average dwelling value is $1,568,901 (see table below for average values and value changes for all districts).

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QV House Price Index 
February 2020
Territorial authority Average current value 12 month change % 3 month change %
Auckland Region 1,057,556 1.2% 1.8%
Wellington Region 774,957 10.8% 5.4%
Main Urban Areas 827,375 4.3% 2.5%
       
Far North 487,568 8.7% 3.3%
Whangarei 562,160 3.8% 3.3%
Kaipara 561,780 3.5% -0.1%
Auckland - Rodney 963,732 0.4% 2.5%
Rodney - Hibiscus Coast 942,374 1.2% 2.7%
Rodney - North 985,870 -0.3% 2.3%
Auckland - North Shore 1,213,477 0.6% 1.5%
North Shore - Coastal 1,381,158 0.9% 0.7%
North Shore - Onewa 976,727 1.0% 1.6%
North Shore - North Harbour 1,190,896 -1.1% 3.4%
Auckland - Waitakere 832,615 1.7% 2.0%
Auckland - City 1,253,165 1.7% 1.8%
Auckland City - Central 1,095,984 1.9% 1.5%
Auckland_City - East 1,568,901 0.8% 1.3%
Auckland City - South 1,120,744 2.2% 2.5%
Auckland City - Islands 1,180,643 4.0% 2.6%
Auckland - Manukau 912,968 1.8% 2.1%
Manukau - East 1,176,410 3.0% 3.5%
Manukau - Central 701,137 0.3% 0.3%
Manukau - North West 794,218 2.1% 1.8%
Auckland - Papakura 716,911 2.9% 1.5%
Auckland - Franklin 682,072 1.2% 1.1%
Thames Coromandel 787,277 4.3% 1.4%
Hauraki 446,645 7.1% 0.9%
Waikato 536,503 10.1% 7.3%
Matamata Piako 501,567 4.6% 2.2%
Hamilton 622,492 7.3% 4.3%
Hamilton - North East 763,336 5.6% 2.9%
Hamilton - Central & North West 582,271 8.4% 5.3%
Hamilton - South East 578,533 8.1% 5.3%
Hamilton - South West 556,965 7.6% 4.3%
Waipa 626,088 10.6% 3.8%
South Waikato 278,829 9.9% 4.1%
Waitomo 237,530 8.5% 1.4%
Taupo 549,672 7.4% -0.1%
Western BOP 688,713 5.6% 3.1%
Tauranga 768,178 5.9% 1.0%
Rotorua 517,776 13.3% 5.0%
Whakatane 511,812 10.2% 2.7%
Kawerau 303,353 24.1% 19.1%
Opotiki 364,075 18.5% 8.9%
Gisborne 416,854 24.9% 5.9%
Wairoa N/A N/A N/A
Hastings 567,508 11.0% 2.2%
Napier 587,935 7.1% 2.2%
Central Hawkes Bay 409,270 10.1% 6.9%
New Plymouth 503,922 9.9% 2.9%
Stratford 318,334 17.6% 2.9%
South Taranaki 267,185 13.5% 1.5%
Ruapehu 250,404 15.2% -0.5%
Whanganui 350,379 29.1% 5.9%
Rangitikei 290,104 31.9% 8.7%
Manawatu 454,210 25.7% 5.2%
Palmerston North 500,702 15.3% 5.1%
Tararua 275,485 22.7% 7.6%
Horowhenua 420,196 21.1% 5.7%
Kapiti Coast 651,143 11.5% 3.6%
Porirua 671,851 13.7% 6.1%
Upper Hutt 621,351 14.9% 5.5%
Hutt 667,034 16.1% 6.2%
Wellington City 888,874 7.9% 4.9%
Wellington - Central & South 884,777 7.1% 4.9%
Wellington - East 945,521 8.2% 5.0%
Wellington - North 814,052 8.6% 5.0%
Wellington - West 1,011,862 7.9% 4.6%
Masterton 427,767 13.7% 6.1%
Carterton 471,198 13.4% 1.5%
South Wairarapa 557,341 9.3% 1.8%
Tasman 623,416 4.1% 0.5%
Nelson 653,576 6.8% 2.5%
Marlborough 511,695 8.1% 4.5%
Kaikoura 460,934 5.1% -3.7%
Buller 214,280 10.7% 1.8%
Grey 235,348 10.4% 5.4%
Westland 265,695 3.8% -0.3%
Hurunui 411,184 6.3% 4.2%
Waimakariri 460,525 2.3% 1.6%
Christchurch 512,442 3.5% 1.5%
Christchurch - East 388,460 3.6% 1.7%
Christchurch - Hills 710,817 6.8% 3.3%
Christchurch - Central & North 596,968 2.3% 0.4%
Christchurch - Southwest 487,346 3.1% 2.1%
Christchurch - Banks Peninsula 548,462 6.3% 1.2%
Selwyn 560,945 1.2% 0.6%
Ashburton 366,408 2.8% 0.4%
Timaru 386,100 4.8% 2.7%
MacKenzie 556,196 10.6% -4.8%
Waimate 289,039 16.7% 7.4%
Waitaki 346,655 10.0% 1.6%
Central Otago 577,241 10.3% 4.1%
Queenstown Lakes 1,212,884 0.7% 0.4%
Dunedin 530,264 18.1% 4.9%
Dunedin - Central & North 545,379 17.9% 4.3%
Dunedin - Peninsular & Coastal 493,681 21.4% 5.0%
Dunedin - South 509,435 18.7% 6.2%
Dunedin - Taieri 547,860 16.6% 4.6%
Clutha 256,275 17.2% 3.7%
Southland 353,218 15.5% 4.0%
Gore 267,455 13.0% 4.5%
Invercargill 343,255 19.3% 1.8%
Total NZ 722,475 5.3% 2.6%

QV house price index

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Source: QV
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48 Comments

Interesting one roof said otherwise just this week. Makes you question where the data is coming from and what you can believe. I guess it depends on time frame used. 12 months may be true but doesn't give you a great trend a couple of months into a pandemic.

It's too early to tell but look at the latest b&t auction this week still getting better than average clearances
"Activity remained elevated in Barfoot & Thompson's auction rooms in the last week of February, although the numbers dipped slightly from the previous week.
The agency marketed 170 residential properties for sale by auction in the week from February 24  to March 1, which was down slightly from the 187 properties the previous week...overall sales rate of 56% which was also down from 65% the previous week. "
With looming rbnz cuts that should also lower mortgage rates.

Well, the flat market through most of 2016-2019 had to come to an end sometime. It served its purpose for buyers, allowing them to purchase a house without being under too much pressure......

But, clearly things have changed over the last 6 month or so. NZers’ underlying passion for property is very real; it remains the investment of choice.

TTP

Barfoots median slumps back to February 2017 levels

Corona who ?

Toyota Corona.

TTP

15
up

Go the unproductive economy! Go inequality!

How is housing unproductive?
It keeps so many employed in so many ways.
Inequality is so overrated.
Of course there are people who have more wealth than others but we need these people so that they can keep the ones who
Don’t have as much alive.

20
up

How does rising house prices increase New Zealand's productivity again? The only people who win are speculators, rent seekers (unearned income) and the commercial banks.

As for inequality, spend time living in places that have high inequality (like South Africa) and see what your quality of life is like. I'm sure you wouldn't mind the constant threat of home invasion or robbery. Nothing says 'ambience' like having to have razor wire fences.

Wow. I've never heard an argument as compelling as 'we need the wealthy to keep others alive'. That's a new one. I've got no beef with wealthy business owners, they've earnt their wealth. Landlords on the other hand....

Exactly.

"Landlords on the other hand...."
Very dismissive of the role landlords play, this is only a case of the green eyed monster that cant handle others who have worked hard actually making a capital gain. There are also lots of risks and that is why your average person will not even consider property investments... when property is in a good space those same people see the gains as being freebies and they forget the work that has gone into getting there

18
up

You'd struggle to convince me since the turn of the century that a) it has taken hard work to make a capital gain in these housing markets and b) there's been a lot - if any - risk involved...

I've made capital gain off housing but I wasn't disillusioned into thinking I did anything to earn it.

Many would love to make "freebies" but can't handle the heat so wisely stayed out of the kitchen vis-a-vis retired poppy. So why should I feel guilty for your blinkered view on property investors. You say it's ok for share investors in shares such as zero who have done less than xero to help the company

The argument being presented is that feeding capital into investment property is relatively unproductive for our economy. If this capital was directed elsewhere, we'd likely see advancement in productive sectors of the economy and some more success stories (like Xero - appreciate the example).

As CN states below you are most likely a savy buyer and made yourself a buck. I didn't say you should feel guilty but making it out like it's a stroke of genius, tough work with a load of risk is laughable.

Well people need housing and others want investments so the RE sector will always be there in some form. Yes we have been lucky with property which were investor only properties. We had some foresight and did well which has built up our capital to the point we can get into good size projects. That will hopefully benefit lots of other people too and that is productive enough. I will let you pick up the cudgels exporting goods to China good luck with that. Dont tell me that you point your boney finger at others to be productive and not think that it applies to you as well.

Correct people need housing not investors. Investors just rent it back then use rent and accommodation supplement to fund further investment. Time to remove investors form the market. How is providing rental accommodation benefiting workers? They need to be buying their own home not servicing your mortgage.

There have been many who have confused genius with a bull market.

Having said that, Houseworks is a savvy buyer of residential property.

Well you're a genius too. I hope you feel like a real person now

I'm savvy too. My owner occupied house in Masterton has gone up 50% in value since I bought 2.5 years ago. I knew this would happen, I mean it was a calculated risk, with some really complex mathematical equations that none of you will even begin to understand, but it's really paid off.

Houseworks,

More self-serving garbage. I speak as both a landlord for the past 20 years and a long-term stockmarket investor. I am well aware of how lucky I have been in life, having had a loving and stable home as a child and an excellent education.
The rental I have had in Mt. Maunganui for the past 20 years has risen hugely in value-and that has NOTHING to do with me. Similarly, I have been the beneficiary of the fact that NZ has had one of the best performing stockmarkets in the world in recent years.
The idea that as a landlord "you have worked hard" is just laughable.

And what are you doing with all that wealth Linklater. Sitting there being comfortable in your privileged upbringing from the sounds

Thanks Linklater - that's the point I was trying to make. Nice to see a realistic viewpoint from someone who has benefited from recent market conditions.

You two have as much vision as a blind badger that's why you're so upset. Haha. Ridiculous Linklater worriedly sitting on a collapsed share portfolio and lying lyw's accusing finger firmly stuck somewhere it shouldn't be.

Haha interesting take, not upset in the slightest. Play the ball not the man mate. All the best

If you think house prices has anything to do with inequality in SA then you are beyond ignorant and cherry picking to the extreme

TheMan believes inequality doesn't matter much. I've pointed out a country with high inequality to explain why it matters. At what point did I make the claim about the reason for South Africa's inequality? That's right, I didn't.

South Africa is a very poor comparison. The USA would be more similar to what you'd expect if inequality continues in NZ.

Oh!, you mean Politicians and Bankers...the benefit for all Man-kind.

Very simple logic. Housing is unproductive because it needs people staying in the jobs to inject cash into housing, also the price can not go down. Missing any of these conditions, it's not sustainable. But where do people get jobs from? who's gonna make products that meet the basic needs for people? Take this covid-19 outbreak for example, if everyone gets job from housing industry, who's gonna make masks, hand sanitizer, toilet papers when they run out? This is happenning right now. If deglobalisation continue to happen, dont be supprised when housing price start dropping...

TM2,

I thought I was immune to the garbage to put out, but not so. "Inequality is so overrated' is one of the most uncharitable and arrogant views I have come across. It actually shocked me that someone could be so unfeeling to those less fortunate.
The last paragraph is of course the long-discredited theory of 'trickle down economics'. I both despise you and at the same time, I feel sorry for you.

House values rising,a Minister of Finance urging the banks to keep on lending,a possible lowering of interest rates coming......its all set up for the wealthy to get even weathier.....go u good thing.

And in this environment, the Gnats are threatening kiwis with abolishing the FBB...
How does any of this make any sense?

Always interesting to see these kind of stats and I follow them myself. But I think the flaws in using average values as a measure of the value of individual homes are well-known. Just because the average has increased it doesn’t necessarily mean house prices have increased. It could just as easily indicate a relatively higher portion of top end homes a/coming on to the market, b/ being bought by the market, c/ both. Given the lack of activity over the last couple of years, current low interest rates, and the propensity for things to pick up in spring, I’d say it’s quite likely more of the top end homes just got flushed out.

HPI for Auckland doesn’t look quite so rosy. Still shows a period of flattish values which have swung up and down for about 3 years and are on another upswing.

Maybe we are about to see another period of consistent rises. But having seen in other housing economies how the market is relentlessly spruiked when it’s looking dubious, or clearly going down, and with a recession on the horizon, I don’t think the need to panic buy is here quite yet.

I think you'll find the % change is based on the QV index - which similar to the RIENZ index accounts for the change in mix of properties sold

QV is not based on sold properties, it applies to all properties on the market as QV provides the CV's to the councils when they get updated

Big Data,

If mortgage fraud is prevalent in the loans that have been issued, that has resulted in larger borrowing amounts and likely to have resulted in higher prices.

For Auckland, using the median household income, this means that the borrowing power has increased by about 26%, and hence prices paid by about 26%.

What happens if banks discover this, and then choose not to allow sub-tenants agreements due to the large number of fraud involved? The banks got caught out a few years ago with fraudulent claims on offshore income / offshore assets for offshore buyers.

https://www.stuff.co.nz/business/industries/81049526/why-banks-are-block...

It must be Barfoots monthly dump day. Given how ebullient the Auckland housing market apparently is, the average number of February sales for the past decade is 698. Will all the recent commentary apparently seeing a surge in prices was it fact or fiction ?

I think the value of housing is diminishing, sure prices are going up, but value is worsening.

Not long now until the black swan dumps it's load.

You not wrong Brock. I have an auction coming up on the 19th March that I'm very interested in but not sure if this is enough time for the swans to well and truly arrive in a flock. It takes a couple of months after the detection of the first case at a local level for it to get all the public past the denial stage. Unfortunately many people need to get a sick as a dog and think they are dying and have someone they know to actually die from it before the penny drops.

"She'll be right". A good kiwism I dont hear much now, everyone has become too risk averse.

Aunty NZHerald tying itself in knots with it's recent property info:

e.g:
Friday January 31st edition page 9 : they say median price of Royal Oak property rose 6.4% over year.

But:

Monday March 2nd Herald "One Roof" Property report: says median Royal Oak property rose 0% over
year.

And today we have the QV index showing Auckland City South (includes Royal Oak) with a 2.2 % rise over past year.

Who to believe?

As a Herald subscriber I'm getting increasingly hacked off with their One Roof property drivel....it's all over the place, can't be trusted, and is obviously manipulated or the result of incompetence.

Add to that Liam Dann's "old-news stories" dominating their on-line business fare and you have a newspaper in decline.

Landlords that are into property investing don’t really give a rats what the value of their properties are providing they are getting a good return and they are able to leverage to buy another to assist those that want or need to rent.
Property investors generally don’t just sit on their butts doing nothing!!
Personally we are doing updates, repairs etc. and any capital gains on paper we thoroughly deserve if we happen to want to sell a property.
Those that continually go on about unearned income and greedy landlords would gladly take any gains if they could change places!!
Property investing is no different to any other business where the owner wants to make a living and a profit if he sold the business and they generally thoroughly deserve it as well.
For the doom and gloom merchants for property, rather than moan and groan you would be far better off getting off your butts and contribute by purchasing a property and providing a home for those that need or want to rent!

"Property investors generally don’t just sit on their butts doing nothing!!"
Most commenters here ridicule that. To them it's not true, because they know about it ... even though they have never had to take on the responsibility themselves. Oh well let's see if the numpties in govt go full tit with the RTA amendments and end up making it worse for their own

Dude... seriously? Most people in their 30s or late 20s now CAN'T AFFORD to buy a home. Do you really think everybody can come up with $150k+ deposits? Do you realise that the 'need to rents' greatly outnumber the 'want to rents'? They raise their voices ("moan and groan") because the divide is getting wider every day, and the people in power are actively accelerating this process.
For the well off landlords, rather than moaning and groaning about the poor people on forums like this, you would be far better off getting off your butts and contributing to society by reading wage stats and showing a bit of empathy.
Don't you realise that a whole generation is neck deep in the shit, with landlords standing on their shoulders... and you have the audacity to tell us to stop moaning?

I believe that FHBS have finally got off their backsides and have actually formed a political party to push their concerns....they should have done this long ago. But I suppose it's better late than never. I may even make a donation.
But I have forgotten what they call themselves; can a FHB remind me please? And who are the enterprising FHBs that have taken this initiative.

By rational calculation? RBNZ will follow OZ & US, except? they must reduce it by around 75 basis point the least, this is the only responsible way to stimulate stagnant economy, maintain upwards positive GDP growth. Only with that the rest of the world will start removing their Covid19 barrier/isolation, because? NZ is clearly showing it means business, goods movement should be a priority, export & largely import based for NZ. Covid19 is too much being announced focus on the isolation side to contain it. The truth? movement of imported goods in/out, to/from, export/import from China should stay the same as this virus cannot travel by means of wind/air movement.. and? largely will be killed during shipment exposure to the Sun UV rays.

Take a good look at the picture above. Tells a lot about the state of housing, build representing 25% of the total market value. This will end badly.