Property values continued to steam higher in February, with signs that activity is now starting to spread wider than the hotspot Auckland, latest figures from Quotable Value show.
The latest monthly property value index shows that nationwide residential values are up 3.2% above the previous market peak of late 2007, with a 1.7% increase over the past three months and a 6.3% increase over the past year.
QV.co.nz Research Director Jonno Ingerson said: “A few months ago the nationwide increase in values was mainly driven by Auckland and Canterbury. However, the rest of the main cities and provincial centres are now also increasing in value, although not as quickly as Auckland and Canterbury.
“As has been the case for several months, there are a low number of properties for sale and low numbers of new listings coming to the market. This continues to constrain choice for buyers, many of who are keen to buy but cannot find a suitable property. When quality properties come onto the market they continue to sell well.
“Across the country there is a tendency for buyers to be much more cautious in their decision making prior to purchase. They are often looking carefully at market evidence, getting building reports, and seeking valuations on the property.”
Values across Auckland continue to increase, up 10.4% over the past year.
Over the past year Hamilton is up 4.6%, Wellington 1.7%, Christchurch 7.5% and Dunedin 3.7%. Christchurch has continued to increase the most with a 2.9% increase seen over the past three months. The only main city that is still trailing behind is Tauranga, where values have been consistently flat. This has left values in Tauranga at exactly the same as this time last year.
QV says in Auckland there is variability between areas. In the West and on the North Shore values are continuing to increase strongly. In Rodney, old Auckland City and Manukau the rate of increase in the last three months is slower than it has been for the past year in the first signs that the rate of increase may be slowing.
QV Valuer Kerry Stewart said: “Overall, there remains a shortage of listings, which is continuing to put pressure on buyers. Auctions are being favoured by sellers and in some cases they are getting multiple bidders going head to head. Many of these buyers are also coming to the auctions fully prepared with all their due diligence done allowing them to put their best foot forward. We are also finding property investors are coming back into the market.”
Most of the main provincial centres have started increasing in value faster over the past three months. The exceptions are Rotorua, down 1.3% over the past three months and Gisborne, down 1.2%, and Whangarei which is flat. While there is variability across the country, values for the combined rural areas have been steadily increasing over the past 18 months and are up 3.2% over the past year.
31 Comments
Auckland is just so ridiculously over priced its not funny.
If you love red wine, great beaches, great weather, great arts and culture scene, great food, good sports, manageable traffic and relatively affordable housing - like me - then Adelaide is a great place!
If you can tolerate mediocre weather, bad traffic and stupid house prices then I guess Auckland is OK as its a nice enough place
With the end of year upon us, get ready for some Annual April price rises.
Conctrete, Glass, Tin and Timber coupled with higher Labour rates, Councils Fleecing get ready it's all going to cost more.
If every component of the House is influenced by price ratcheting in an upward direction then the total sum/cost will continue to rise.
Queensland is still offering a $10,000 builders boost and the First Home owner grants to keep the builders churning out Affordable Housing.
South of Coloudra over 11,000 Houses are to be built below $395,000, new hospitals are being built alongside a new university.
My thought is a defined budget should be allocated to the large box builders and Residential Construction Finnace is only made available for thatdefined Affordable Housing product at a discounted rate, upon the disbursements of funds from the sale the Builders solicitor repays the Govt residenial construction finance and interest.
House sale price may not exceed a certain cap or the builder is no longer eligible for low rate finance, those that satisfy the contract are immediately able to redraw same facility and so on and so on.
Because i cant see why any developers are going to go through all the hoops and crap to build smaller lower cost homes.
Thing you have to understand about Council financial models, Happy One, is this.
Every line item in the Plan, rolls up into one of several main buckets.
The political-dynamite bucket is Rates Required, because the media and the commentariat know exactly what that means in economic terms: the Council's Long arm, in Your short pocket, after your stash.
So they will move heaven, earth (and every other line item which requires funding), into Some Other Bucket. Leaving Rates Required as a high but explainable figure.
The trick is to keep the punter's mind on Rates Required, because the machinations in 'Fees and Charges', or 'Contributions', or 'Other Revenue', then slide straight under the radar.
So Councils will not stop charging these ridiculous figures per section or lot, because they have ineptocrats to house and feed, plans to write for other ineptocrats to read, and all safely out of the sight of real public scrutiny.
It's a bit like the Bankstaz. Run into a bit of an issue, create an off-balance-sheet vehicle of some sort, shift the problem deals into it, and continue to pass audits and stress tests.
Shell game, really, but there you have it.
Those Fees, Charges, Contributions, Levies etc are all input costs to ratepayer purchases - just at several removes. In manufacturing lingo, Raw Materials, not Finished Goods.
But given that these inputs wind up on section and lot pricing (and then - the bywash effect - feed straight back into Existing Section pricing - a nice little CG for the householder who can then borrow against it or cash it in and light out for other parts), it is still the Council's long arm, in your short pocket.
Councils are, quite simply, economically clueless in this area. And they have completely foobarred the housing and residential land markets....
Sigh.
This up turn has no foundation for property to keep going up it is only driven by 3 Things.
- Low interest rates (the only pay rise anyone’s had in two years)
- The Asian community pouring petrol on the market only in parts of it i.e. Forrest Hill Northshore good school zone.
- Real-estate agents (the Clowns) and the Real-estate industry (The circus) talking it up
There is a very easy way for the buyers to take control back of the market.
STOP BIDING AT AUCTION.
Why as buyers are we allowing Real-estate agents (The Clowns) and the Real-estate industry (The circus) to dictate to the buyer how we purchase?
Stop BIDDING AND BUYING by auction and the market will even out very quickly.
Agreed B&W. Those participating under such circumstances are what I called 'distressed buyers'. As a nation we are allowing ourselves to be tucked by these operators, who seem only interested in further distorting the world, for their silly commissions, something which the beautiful concept known as capitalism usually arbitrages out and back to equilibrium again.
So far, entrants and longer players in this market are making their own reality. If allowed to continue to ramp up, there will be a top, of course, and once in, no amount of further interest rate reductions will arrest the hangover.
At that point your friendly RE agent will contact you again, same photos embellishing his/her prowess, but a different title that being Loan Modification guy, or Short Sale Specialist or something.
Some of the comments on this board by the pro-property types are astounding;
- 1. "There is no better or worse time to buy. Just buy, buy, buy." Oh yeah? So that means as an owner you would conversely agree that there is no better or worse time to sell. Hello? Yeah, thought so .
- 2. "Once the top is in, we will all cash out..." Are you kidding me? If you're all selling, then the top was in long ago.
- 3. "You are a grey dullard for not embracing this action, or something to that effect." My goodness. From a karma perpective, are you asking for this to end?
- 4. "Property investors provide an essential service to NZ society." Yeah, right. That's the same BS claim is made by DPB mothers.
It was the brief of central bankers around he world in lowering rates and printing funny money, to get unemployment under control. I would posit, their actions in blowing up another RE bubble are producing the opposite effect. Deep down most of us know this is a spooky time, because everything is upside down. Here is Jim Rogers talming about how the worlds savers are getting wiped out.
And all this to protect the position of those making absurd claims such as the four above...
it's crazy...for the last 8 years I've been a good boy and saved everythig...what do I get out of it, nothing, thanks to all the printing going on....it's so frustrating!! I feel there is panic in the air, is hyper-inflation coming?...are savers are jumping into property to for protection?
it's crazy...for the last 8 years I've been a good boy and saved everythig...what do I get out of it, nothing, thanks to all the printing going on....it's so frustrating!! I feel there is panic in the air, is hyper-inflation coming?...are savers are jumping into property to for protection?
Hyperinflation? Maybe. More likely that we will follow Japan if we are lucky and an almighty correction if not. Why? Because all the money going into property is at the direct expense of mainstreet commerce. Mainstreet commerce is where the masses operate. If they are being starved it is just a matter of time.
I cant see any logic here, you get nothing because of printing? Unless you mean printing has so far stopped deflation? (which it probably has)
Right now as the first act, I dont think we are in for hyper-inflation....serious deflation or a Japan, pretty sure it will be the former. After that has played out, in act 2 noticable inflation would be the normal expectation.
Im not sure what savers are doing, but most seem to be using debt with 30 yr mortgages at 95%....personally I think its exposiing them to huge loss...and not protection....
regards
Looking through this open home was inspiring for Aucklanders wanting to save some coin, seems to be a good home in a good area & under 700k mark possibly.
http://www.barfoot.co.nz/490388
I'm in my early thirties and having sold our home in Glenfield in October last year, we struggled to find a comparable/better new home. In the end we decided on a lifestyle change and purchased a new home in Silverdale which is undergoing tremendous growth. We couldnt be happier, a new 4bdrm, 250sqm home within a short walking distance to Orewa Beach all for $700k. We both work in Central Auckland and the commute is around 40 mins peak/20 mins off peak , but the lifestyle is worth it and we've never looked back.
270k for house plus services...rezone the land so thats virtually no cost as well....
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10870819
regards
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