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.
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