QV says average house price has risen to $445,247, up from $441,254; Auckland prices up 12.8%

QV says average house price has risen to $445,247, up from $441,254; Auckland prices up 12.8%

Nationwide housing values as measured by government valuer Quotable Value (QV) increased by 3.1% in the past three months and by 8.1% in the past year.

Values are now up 7.5% over the previous market peak of late 2007.

National average residential property values rose in the year to July to $445,247, compared with 441,254 for the 12 months to June. The rate of annual increase has risen to 8.1% from the 7.6% it sat at in June.

Auckland values for the latest 12 months were up 12.8%, compared with 12.6% in the 12 months to June, while the average price had risen to NZ$644,973, QV said.

The Reserve Bank, concerned about the potential impact of rising house prices on financial stability, is considering introducing "speed limits" on high loan-to-value lending. The Government and the Auckland Council have agreed in principle to an Auckland Housing Accord that would fast-track housing development, with 39,000 new houses targeted to be built in the next three years.

QV operations manager Kerry Steward said that house values continued to rise "although still primarily driven by Auckland and Christchurch".

"Most of the rest of the main centres are also increasing but at a much slower rate. Many of the provincial towns had previously started to see some small gains; however values have dropped over the last month," he said.

Stewart said that while there had been the normal slowdown in sales activity over winter, the decrease since May had been "greater than that alone".

"This appears to be due to a decrease in sales activity and a decrease in home loan approvals," he said.

"The latter is due to many main banks already tightening their lending policy in anticipation of policy changes from the reserve bank."

Auckland values continued to rise across the region, albeit some areas were increasing at faster rates than others.

"Lack of supply continues to heavily influence the market, but other factors may be playing a role in the continual increases, including the low interest rates still prevalent, an increasing population as well as incentives for both investors and first home buyers in the form of capital gains and Kiwisaver schemes respectively," Stewart said.

Here is QV's regional  breakdown of the latest figures:


Values across Auckland are still increasing, with strong increases over the past three months in old Auckland City, Waitakere and North Shore. Each saw a rise over 4%, leading to a 4.1% increase in Auckland region as a whole. If we delve a little further we can see some areas slowing in comparison.

Auckland City Central especially has only increased 2.1% over the last three months, a stark contrast to the surrounding areas like Auckland City South which has seen a 5.3% increase and Auckland City East with a 4.9% increase.

Overall, values across Auckland are 12.8% above last year, with Waitakere seeing the highest annual increase of 13.8%. Auckland City and North Shore are close behind at 13.6% and 13.5% respectively, however, with further scrutiny again we can see some regions, such as Auckland City South (15.7%) and North Shore Onewa (14%) exceeding.

QV Operations Manager Kerry Stewart said “There is patchy growth across the city with central Auckland generally flat. There is a ring of price movement around 5-10km out of this area, but as you move further out of the city values are generally flat also. Once you move out of the central area commute times for example become a deterrent. However, we are still seeing good god money being paid for normally average listings due to the lack of stock.”

Hamilton and Tauranga

Growth in Hamilton is still occurring, but it has started to falter somewhat over the winter period. Values are up 0.6% over the last three months, and 3.8% over the past year.

QV Valuer Richard Allen said “The north east of the city, in and around Flagstaff, is experiencing high activity with construction, specification builders, and sales all occurring. This is consequently raising prices. Despite some higher density housing being built around the university area, entry level homes below $300,000 are a struggle to find.”

Tauranga is fluctuating still, with values now 0.1% below this time last year. However, there has been a 0.4% increase over the past three months.

QV Valuer Paul Scown said “There has been a small improvement in interest from buyers this month, particularly for well-maintained properties.”


Values in the Wellington area are still showing small signs of growth. Values are 2.8% above this time last year with a 0.7% growth in the last 3 months.

Whereas Porirua clearly had the highest annual rise in previous months, all areas are now only between 2.6% and 3% annually.

QV Valuer Pieter Geill said “It has been a relatively quiet month in July, partly due to school holidays but also probably because of the weather and the earthquakes. The latter may mean buyers will start to focus more on the quality of buildings and their level of earthquake proofing. We are also seeing insurance becoming a standard condition of purchase.”

Christchurch and Dunedin

Christchurch values have once again risen, although increases here aren’t quite as high as some of the areas in Auckland. Christchurch has seen a 3.4% increase over the past three months, leaving it sitting at 10.8% over the past year.

Values in Banks Peninsula and the Central and North areas of the city are seeing the most rapid increases, with 5.9% and 3.8% increases over the past three months respectively.

QV Valuer Jonathon Dix said “Momentum in the market is continuing with sales being recorded in all sale sectors. We are seeing first home buyers trying to get into the market in the $500,000 and under bracket, especially before the changes to the bank’s lending requirements come into play.”

“A steady influx of rebuild workers is continuing to put pressure on the market with a notable increase in demand for adequate rentals. This is also seemingly pushing rent prices higher.”

Dunedin initially saw some gains this year, but has dropped back recently. Values have decreased 0.2% over the past three months, leaving it 3.4% above last year.

QV Valuer Tim Gibson said “The market has seen a slowing down in supply. There have been good attendances at open homes, but not enough quality listings around for those looking to buy.

"We may see the situation improve through spring when more sellers put their homes on the market.”

Provincial centres

The provincial centres are patchy, however most are still up on last year. Whangerei, Taupo, Rotorua and Gisborne are all up, although no more than 2.6% annually.

Hastings and Napier saw only slight gains over the past three months, whereas the Wairarapa has seen a slow winter with all areas declining slightly over the past three months. In the South Island, Nelson has increased 1.2% over the past three months, whereas both Gore and Invercargill has continued to decline.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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Boom times.....any deniers left out there? 
However, we are still seeing god money being paid for normally average listings due to the lack of stock.” God money- what currency is that ? ;)

" God money " is the amount of dosh you need to purchase a modest 3 brm house in NZ these days .....
... without it , you havn't got a prayer in Godzone ....

God money is what YL gets paid, giving his saintly services to the masses, not thinking about profit of course, just about other people.

... you're so right , he is a rare gem of a landlord ... Saint Landlord of Damascus .... ooops , of de masses .....

My landlord is pretty good, but in all seriousness if I had a different one I would want it to be YL

Certainly do not deny it is boom time, it is just the obsession with property purchase in this country is bizarre and unteniable in the long term.
Some people like me just want a nice house to live in. That is right just to live in! I don't want to get rich quick or play the property ladder game. What used to be a dignified birthright has turned into a seedy rat-race of speculation and profiteering. 

True, I am invested in several growth funds, some shares and even in bitcoin, my return averages about 7%. None of this would have happened if I had a mortgage to maintain! 

Individually if you are a sensible Joshua you are buggered if you do and buggered if you don't.
Joshua you have to change the system if you want your birhright!

We can argue the merits of the system we have but this comment is bang on the money.
Risk and leverage as per the above is so well rewarded - why bother with 7% in unit trusts etc?

Zanyane, your 50% return a year doesn't take into account the cost of 'maintaining' the mortgage vs what you would otherwise be saving. A $20,000 deposit could turn into $30,000 but you'll be spending much much more than $10,000 on interest, rates, insurance and ongoing maintenance. 
This boom busts are cyclical in nature. The current boom remains me of 1986 (check out your history to see what happens in 1987). But you never know 10% price increase could go on in perpetuity.

A 2 brm W/B house in Pt. Chevalier sold for over $NZ 1 million yesterday , 50 % above it's QV of $ 700 000 ..... and it was auctioned within 24 hours of initial listing !
... this suggests we're in the bubble-zone ..... and the owners seemed to not want to allow anyone sufficient time to do due diligence on the property ....
When sleazy tactics occur alongside soaring prices  : CAVEAT EMPTOR !!!

Good advice GBH!!!!!

Hello Mr notaneconomist ; Not seen you around lately , all goody good with you ?
... here's the Gummster take on things : What are the alternatives to spending a cool million on this one little house in Auckland ? ..... there's zillions of better uses for that munny , in my gumble view ....
Emerging market shares / micro-cap stocks / rentals in Dunedin / a beachfront or three in the tropics / a cashflow positive business /  Gummibar manufacturing facility / a hooters bar in Las Vegas .... the list is endless .... it's a hoot , when you get stuck into it ...

Gummy, I reckon there is nothing wrong with your advice.
If someone has an enthusiasm for whatever activity you have suggested then they can invest their money there and will do well.
I have most of my loot in property but would never insist it's the only place to be.
Far from it.
People should go to where they are interested and invest there. And good on 'em for doing so.
Your advice is positive and helps progress a person's wealth... unlike so many of the doom gloom and despondency brigade on interest.co.nz who think any form of return on an investment makes someone a crook or a "greedy scumbag."

Hello GBH - I have been keeping a pretty low profile around here for a bit.
The Gummster's take on things is pretty similar to my own.  Having all your eggs in one basket leaves those investors exposed to any changes in the area that they have invested in. Politicians and bureaucrats are notorious at implementing changes so having things spread around has always been good practice. 
If you create good income streams you can live anywhere. 

Not good advice actually.
Thats a 600sq section in a quiet street in a top neighbourhood close to pt chev beach and park, with an additional possibility of future subdiv.
1.05 seems reasonable.

I'm pretty sure GBH is referring to this property, as discussed in this article (http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1091...).
Are you still sure there's no cause for concern? Even the REAA made comment.

SK - due diligence and caveat emptor is very good advice when undertaking any investment.
If people don't undertake due diligence and apply caveat emptor and events take a different direction then I don't want those idiots whinging at any Government asking for a handout to obtain relief.

Agree, but if the banks become insolvent and close their doors no one eats.
thats just it for me, if the likes of SK or big daddy ended up as body parts to pay of his / her il-advised debt I wouldnt bat an eyelid...but reality is once he's bankrupt the ppl with little debt and income will have to pay for his/her error.
Maybe bringing back debtors prisons isnt such a bad thing, almost certain I suspect, in all but name.

It is indeed a bubble...the Q is how long and how high....and when to exit........
How does the Motorhead Ace of Spades song go.......
indeed...dont forget the joker....

How long have you been saying it's a bubble steven?

In NZ or just Auckland and ChCh?

That what you get with cheap money and the threat of tightning up the rules around loans and foriegn ownership.

Stellar result especially for the winter months.
Annualising this result and we're heading for another year of 15 - 20% gains.

Interesting news story looks like our property investments in NZ are moving along very strongly 12.8% in 12 months is incredible New Zealand is looking like a place to live and invest for the long term !!
I happy with this good news update !
Keep up the good work !

Attention Gareth Vaughan ..
here you go .. "our property investments in NZ" .. foreign? .. off-shore?
check this out .. looks like a puff piece .. connect .. where General Equity money is going

Attention Two otherguys, what’s up you guys have an issue with people investing in NZ it’s been happening for a very long time mate and that’s what makes the world turn around i really don’t get what’s going on here and it would seem like you’re in on something that no one can understand and why would you care to let the writer of the story about General Equity about my comments on his story it’s there for everyone to read mate so what’s the big deal?
did you know that Australian is the single largest investor in NZ? And now China is also moving up also!! So tell me are you trying to suggest to all of us you don’t want anyone one outside NZ to invest in NZ? 
I would like to know what your part is in all this? This will not stop us investors liking NZ ok as it has a lot to offer.
No one stoping you to invest anywhere in the world we are now a gobble economy! 
and by the way what’s your issue with General Equity anyway did you invest with them and now got some issues ? Is this what this is all about ? can you explain your real interest and story to me?

No bullshit!  I have just witnessed in the last week people from work, one bought a Westmere house overlooking the Cox's Bay Reserve for $2.5 mil (this one mortgaged to the hilt at over 1.5 mil); and the other a renovated villa near Eden Park in Marlborough St, Mt Eden for $2 mil.  Both young couples in their early 30's with no kids...god help them if the bubbles burst or they lost their jobs.

Frightening  !  What are we getting these people into.  We need a company where somebody can get into a reasonable house in a place like Mt Eden for 200K max.  Don't snort.  That is a fraction of what it does cost now true.  But thats my old stamping ground and we lived happy as clams and adequately on modest incomes in those same houses.  With spare cash in our pockets.
It should be our aim to make the economy serve the people.  Not the other way around.  We can get back to that.

So now you are discovering that Auckland is no longer the place you once knew.
That laid back, pleasant, easy-going place you grew up in.
Not much you can do about it, is there.
Do you think it has changed for the better?

I'm in Auckland lots and no it ain't the place it was.  And it's not changed for the better.  But thats the point isn't it.   Why are we running it like this.  And who are we running it for.
Been in a few of those mega villas.  Wonderful actually.  And yes, not an apple for apples comparison with what once was.
There are a bunch of people doing quite well in Auckland.   Maybe 100,000.  Otherwise it seems quite poor to me.  Even back in the 80s, lots of people who seemed to have no cash in their pocket, because their Auckland mortgage hoovered a couple of hundred bucks a week extra right out of their wallet.  No coffee money and take a lunch to work.
it's quite a few years since Metro posed it's description of the average Aucklander, female, polynesian and living in Otahuhu.  ie.  Not the rich yuppie of Parnell.
Back to the point.  Dink couple in their 30s paying a million or two for a house.  What are we doing to them.  Mostly they have calculated and can get by.  Just.  And packed lunch for work for the rest of their lives.  Not how we should be running the country IMHO.

Dear KH, One of the couples have over 400k household income per annum, the other one over 600k per annum.  So it is not really a big surprise despite their reasonably young age.  I agree there are many successful people in Auckland, may be just over 100,000 but Auckland has over 1.5 million people so I agree with you that there are actually more poor than rich, and that income inequility has become a real issue, or potentially a crisis for Auckland if the government don't act soon.

Astonishing incomes.  But has to be rare - like the $0.001%.  Good on them that they make that much.  But they are rare enough to be irrevelant.
Even the reasonably well paid, like teachers and nurses, are in the same market.  No disposable.  And looking very poor to me.

I'd say more like 0.01% which still gives around 10,000 households with similar income, and that's probably the sum of all the "2 mil plus houses" in Herne Bay, St Marys Bay, Westmere, Parmell, Mt Eden, Remuera and Epsom.

What is the problem with percentages on this site. 1% of 1 million is 10,000.
So it seems 1% of Auckland is winning and 99% are getting the proverbial.

Can't nail the reference just now.  But famiy income of $200K puts you well into the 1%.  I think ??  Doesnt seem a high figure to me compared with housing costs.
$500k plus does mean you are very very rare.
Summary:  Housing costs makes Aucklanders poor.  Even "high income" Aucklanders have no disposible, not investing, and the place can' t afford it's own infrastructure.
As a boy " from halfway down Dominion Road" and knowing how life was our oyster then, I have to ask.  Where did it all go wrong?  

Check out the QV chart
Compare the cycle coming out of 1998 with the current one....
Sadly... I'm thinking house prices could  follow a similar curve as it did from 1998 to 2007.  ( keep in mind that it is a chart of "rate of change".. )
 I'd also expect a strong mkt going into next yrs election..and then a pullback or sideways  after the election....     In this regard I would also think that National won't really get stuck into Aucklands Housing problems until after the next election.
I say sadly ... because I think that there is a real Social cost to really high house prices and young people with HUGE mortages....which become shakles.
This is just my view... which could change.....  

Just reading about J Key's RMA announcements. I'm sorry, but it's almost meaningless tinkering at the edges. This tinkering will have no effect on housing affordability. 

Agree with you there.

  • halve from 20 to 10 working days the time limit for consents for straightforward applications such as adding a deck or veranda
  • require fixed-fee options for certain consents, so there is certainty of cost
  • Give Councils the ability to waive resource consents for insignificant variations from planning rules such as a retaining wall being slightly over a permitted height
  • Require Councils to provide a minimum of 10 years of urban land supply to cope with projected population growth
  • Make subdivisions non-notified unless they are clearly not of the type anticipated by the relevant plan and zoning

Is this even tinkering? barely even lip service to the problem!

The current rate of increase in Auckland, at around 13%, is well below the previous two property cycles.
This suggests that if we are in the middle of another cycle of growth, and if this cycle reflects the previous two cycles, then we could expect values to increase nearly twice as fast as they currently are in the coming years.

I am not so sure if I agree with you there Steve!  I am sure Matt In Auckland will have contrasting argument on your "suggestion".

History certainly backs up what you say here. House prices haven't really gone anywhere since 2007 (well... they are a bit ahead now apparently but it ain't by much) so there is still plenty of upside perhaps.
As a long-term investor I am positioning myself to take advantage of further gains ie definitely not selling anything (not that I do anyway :))

Up 12.8 % ! ........ that's kind of the opposite of down 30 % , isn't it ?
... hang in there , Bernard .... although by time you get your prediction right , houses will probably be up another 50 % from here anyway .... so " down 30 % " from there won't bother folks so much  .....
Meebee the big guy should read Uncle Ollie's wise advice .....