Average residential property values dropped in Auckland and parts of Hamilton and the South Island last month, but continue to rise in other parts of the country, according to the QV House Price Index.
The average value of an Auckland home dropped $4,019 to $1,043,680 in February from $1,047,699 in January. However trends were mixed in different parts of the city, with average values declining on the North Shore, Waitakere and central isthmus suburbs, but continuing to rise in Rodney, Manukau, Papakura and Franklin.
The most sustained fall in the average value of homes has been on the North Shore where they have fallen for three consecutive months, from $1,224,477 in November to $1,196,987 in February, and in Waitakere where they have fallen for three months in a row, from $845,864 in November to $831,705 in February.
In Central Auckland, the area within the old boundaries of the former Auckland City Council, the average value of homes dropped from $1,225,096 in January to $1,224,673 in February.
LVR restrictions blamed
Although the falls in average values are not large, they are significant because the QV House Price Index is a lagging indicator of what is happening in the residential property market and many of the prices that were used to make the latest adjustments to average values would be from sales that occurred in the fourth quarter of last year.
That means much of the weakness that has been evident in the Auckland market since the beginning of this year will feed into the QV figures over the next couple of months.
QV pointed the finger at the latest loan-to-valuation (LVR) mortgage lending restrictions for investors as the reason for the falls. The Reserve Bank last year stepped up its LVR restrictions, setting an LVR limit of 60% for landlords across the country.
"There continues to be uncertainty around where home values are going and there has also been a surge in listings coming onto the market during February, which is giving buyers more choice," QV Auckland homevalue manager James Steel said.
"Properties at the lower end of the market in suburbs popular with investors tend to be not selling for the same premiums they were before the new LVRs came in."
The QV figures also show that average values have fallen for the last three months in a row in the south east and south west suburbs of Hamilton, but are continuing to rise in other parts of the city.
In Hamilton's south east the average value of homes has drooped from $488,963 in November to $481,707 in February and in the south west the average value has fallen from $486,468 in November to $464,668 in February.
Average values also declined in Banks Peninsula, Selwyn, Ashburton (where they have declined for three months in a row) and Waitaki in February, but continued to rise in other parts of the South Island.
"The Christchurch market is showing normal levels of activity but with the supply of homes meeting demand there is nothing driving value growth, so home values are relatively steady," QV Homevalue Christchurch valuer Daryl Taggart said.
QV House Price Index. February 2017.
|Territorial authority||Average current value $||12 month change %||3 month change %|
|Main Urban Areas||750,253||13.0%||-0.1%|
|Total New Zealand||631,349||13.5%||1.1%|
|Auckland - Rodney||936,877||13.6%||1.4%|
|Rodney - Hibiscus Coast||918,495||13.4%||2.6%|
|Rodney - North||957,228||13.6%||0.8%|
|Auckland - North Shore||1,196,987||11.2%||-2.2%|
|North Shore - Coastal||1,363,263||11.6%||-2.7%|
|North Shore - Onewa||962,999||11.0%||-2.2%|
|North Shore - North Harbour||1,176,182||11.2%||-1.0%|
|Auckland - Waitakere||831,705||13.8%||-1.7%|
|Auckland - City||1,224,673||12.5%||0.2%|
|Auckland City - Central||1,062,336||11.6%||0.7%|
|Auckland_City - East||1,540,731||13.5%||1.3%|
|Auckland City - South||1,100,193||11.5%||-1.3%|
|Auckland City - Islands||1,057,341||18.9%||2.7%|
|Auckland - Manukau||902,477||14.2%||-0.4%|
|Manukau - East||1,159,890||14.5%||-0.7%|
|Manukau - Central||685,233||11.6%||-1.7%|
|Manukau - North West||785,112||16.2%||1.6%|
|Auckland - Papakura||686,465||13.6%||0.9%|
|Auckland - Franklin||663,638||13.3%||2.4%|
|Hamilton - North East||681,204||18.6%||-0.5%|
|Hamilton - Central & North West||494,010||15.7%||-0.8%|
|Hamilton - South East||481,707||14.8%||-1.5%|
|Hamilton - South West||464,668||15.1%||-0.8%|
|Central Hawkes Bay||259,663||12.7%||5.8%|
|Wellington - Central & South||704,885||20.3%||2.9%|
|Wellington - East||773,982||21.3%||4.8%|
|Wellington - North||639,076||23.9%||6.0%|
|Wellington - West||806,933||19.5%||0.2%|
|Christchurch - East||371,793||0.7%||-1.8%|
|Christchurch - Hills||672,029||3.2%||-0.8%|
|Christchurch - Central & North||589,186||3.6%||-0.5%|
|Christchurch - Southwest||479,064||3.9%||0.9%|
|Christchurch - Banks Peninsula||508,096||1.6%||-1.8%|
|Dunedin - Central & North||372,954||15.0%||5.3%|
|Dunedin - Peninsular & Coastal||326,875||16.5%||6.9%|
|Dunedin - South||340,838||15.3%||4.8%|
|Dunedin - Taieri||376,406||16.8%||5.3%|