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Although property values are still rising in most parts of NZ, a drop in values in Hamilton and Rotorua may be a sign of waning investor activity

Although property values are still rising in most parts of NZ, a drop in values in Hamilton and Rotorua may be a sign of waning investor activity

Housing values are continuing to rise at a significant clip, with the average value of New Zealand homes increasing by almost $15,000 in August.

According to the CoreLogic NZ House Price Index, the average value of New Zealand homes was $937,148 at the end of August, up $14,727 compared to July's average value of $922,421.

Over the 12 months to the end of August the average value of all New Zealand homes increased by 27%.

However while value growth remains high overall, the rate of growth has been declining and the latest figures show the first significant signs that values have started to decline in some areas.

The most notable declines are in Hamilton and Rotorua.

In Hamilton the average dwelling value declined from $805,503 in July to $782,774 in August, and average values in the city were 0.5% lower in August than they were three months earlier.

In Rotorua the average dwelling value declined from $650,546 in July to $644,390 in August, meaning average values in August were down by 2.8% compared to where they were three months earlier.

It is significant that both Hamilton and Rotorua have been popular locations for residential property investors in recent years and the recent decline in values in both cities may be a sign that changes to the tax treatment of residential investment properties and to loan-to-value ratio lending restrictions for investors, may be starting to have an effect.

However the latest Covid-19 Level 4 lockdown restrictions severely curtailed real estate activity over the last two weeks of August, making it difficult to pick ongoing market trends.

The restrictions are likely to have seen many prospective vendors postpone the sale of their properties but are less likely to have dented demand from buyers.

That could create a shortage of stock relative to demand, which could help maintain or even increase prices, at least until the market returns to a more normal footing once lockdown restrictions are eased.

The table below shows the average dwelling values in all major urban districts throughout New Zealand, and their change over three and 12 months.

CoreLogic's average values are a three month rolling average, based on sales data over the previous three months.

CoreLogic NZ House Price Index
Three Months Ended August 2021
    Average current value $ 3 month change % 12 month change %
  Territorial authority
  Far North 613,098 7.3% 25.7%
  Whangarei 731,063 1.9% 26.2%
  Kaipara 800,180 9.9% 33.2%
  Auckland - Rodney 1,231,994 6.1% 24.7%
  Rodney - Hibiscus Coast 1,197,672 7.0% 23.7%
  Rodney - North 1,264,084 5.4% 25.2%
  Auckland - North Shore 1,496,346 4.3% 22.0%
  North Shore - Coastal 1,710,287 4.1% 22.6%
  North Shore - North Harbour 1,443,911 6.2% 22.1%
  North Shore - Onewa 1,219,428 3.4% 21.7%
  Auckland - Waitakere 1,080,574 5.9% 26.3%
  Auckland - City 1,579,648 6.5% 25.7%
  Auckland City - Central 1,334,480 7.0% 22.6%
  Auckland City - Islands 1,616,712 12.1% 39.3%
  Auckland City - South 1,436,635 7.0% 26.9%
  Auckland_City - East 1,979,169 5.4% 25.5%
  Auckland - Manukau 1,175,631 5.2% 24.8%
  Manukau - Central 932,876 6.1% 26.9%
  Manukau - East 1,502,440 4.1% 25.2%
  Manukau - North West 1,015,193 6.1% 23.4%
  Auckland - Papakura 926,841 5.7% 25.8%
  Auckland - Franklin 887,974 7.0% 25.8%
  Thames Coromandel 1,102,238 8.7% 36.6%
  Hauraki 629,396 23.7% 37.7%
  Waikato 677,055 5.5% 28.1%
  Matamata Piako 642,198 11.2% 21.4%
  Hamilton 782,774 -0.5% 21.8%
  Hamilton - Central & North West 731,237 -0.5% 23.2%
  Hamilton - North East 963,766 0.7% 24.2%
  Hamilton - South East 723,265 -1.0% 19.8%
  Hamilton - South West 704,994 -0.6% 22.0%
  Waipa 816,321 7.4% 25.6%
  South Waikato 404,238 7.8% 28.0%
  Waitomo 314,908 -3.2% 23.6%
  Taupo 785,733 6.7% 34.3%
  Western BOP 904,741 6.7% 28.2%
  Tauranga 1,021,021 5.4% 28.0%
  Rotorua 644,390 -2.8% 19.9%
  Whakatane 672,528 -0.8% 27.4%
  Kawerau 410,618 12.0% 31.4%
  Opotiki 489,143 4.0% 34.6%
  Gisborne 599,244 1.4% 38.2%
  Wairoa 350,064 -8.1% 40.8%
  Hastings 814,682 6.5% 37.2%
  Napier 827,381 3.9% 34.1%
  Central Hawkes Bay 545,867 4.8% 26.3%
  New Plymouth 655,515 3.5% 27.4%
  Stratford 451,414 2.7% 28.0%
  South Taranaki 394,799 5.7% 38.6%
  Ruapehu 370,685 8.3% 38.2%
  Whanganui 522,220 4.4% 41.4%
  Rangitikei 451,435 4.4% 41.2%
  Manawatu 628,138 4.2% 32.3%
  Palmerston North 725,185 5.9% 39.1%
  Tararua 449,708 6.9% 52.2%
  Horowhenua 615,126 5.4% 38.2%
  Kapiti Coast 919,741 2.0% 36.8%
  Porirua 953,891 6.4% 37.8%
  Upper Hutt 892,375 5.7% 37.0%
  Hutt 939,981 5.5% 36.4%
  Wellington 1,194,328 6.8% 33.6%
  Wellington - Central & South 1,126,711 3.7% 27.1%
  Wellington - East 1,305,567 8.7% 37.3%
  Wellington - North 1,133,660 8.9% 37.7%
  Wellington - West 1,372,414 7.3% 36.8%
  Masterton 631,501 6.3% 42.4%
  Carterton 681,566 1.1% 38.3%
  South Wairarapa 820,634 4.5% 44.9%
  Tasman 793,322 5.5% 22.1%
  Nelson 804,681 6.0% 21.8%
  Marlborough 677,987 -0.6% 29.3%
  Kaikoura 603,438 12.6% 26.5%
  Buller 276,136 6.7% 33.6%
  Grey 331,159 15.8% 42.2%
  Westland 346,037 4.6% 23.9%
  Hurunui 497,487 0.0% 19.9%
  Waimakariri 602,588 9.7% 29.2%
  Christchurch 654,198 6.7% 26.0%
  Christchurch - Banks Peninsula 701,356 6.5% 30.5%
  Christchurch - Central & North 759,148 7.3% 24.9%
  Christchurch - East 504,469 6.8% 28.3%
  Christchurch - Hills 907,480 8.5% 27.4%
  Christchurch - Southwest 618,380 5.5% 25.4%
  Selwyn 719,355 7.6% 26.1%
  Ashburton 450,596 3.2% 18.3%
  Timaru 454,610 3.0% 16.3%
  MacKenzie 629,158 0.9% 7.1%
  Waimate 366,471 9.1% 28.7%
  Waitaki 440,272 4.4% 22.6%
  Central Otago 694,926 3.6% 18.1%
  Queenstown Lakes 1,391,079 3.4% 23.3%
  Dunedin 672,058 4.0% 23.2%
  Dunedin - Central & North 690,983 3.9% 25.0%
  Dunedin - Peninsular & Coastal 627,171 4.7% 22.4%
  Dunedin - South 642,154 3.7% 23.8%
  Dunedin - Taieri 696,549 4.1% 20.9%
  Clutha 374,121 11.0% 25.5%
  Southland 428,478 4.3% 14.1%
  Gore 369,098 9.9% 28.8%
  Invercargill 441,837 3.4% 21.8%
         
  Auckland Area 1,337,648 5.7% 24.7%
  Main Urban Areas 1,065,500 5.4% 26.4%
  Wellington Area 1,065,224 6.3% 35.0%
  Total NZ 937,148 5.2% 27.0%

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1 Comments

That's still a $475 increase per day!

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