by Miriam Bell
But, while this means that values nationwide are now 2.9% above the previous market peak of late 2007, it is Auckland values that are leading the charge.
Values in the Auckland market have gone up by 12.2% over the past year. They are now sitting 23.0% above the 2007 peak.
This means the average value of Auckland property is now $786,106. In comparison, the national average is $498,614.
QV national spokesperson Andrea Rush said the “seemingly insatiable” demand for Auckland property has resulted in the upward trend steepening on the QV Residential Price Movement Index.
Moderate value increases occurred in Hamilton (3%), Tauranga (4.8%), Wellington (0.9%), Christchurch (3.4%) and Dunedin (1.2%).
But Rush said these increases were nothing compared to the pace of Auckland values which continue to surge ahead.
Values all over Auckland – and particularly in the suburbs – were rising as the city’s boom spreads to more affordable homes further out from the city centre.
For example: Over the past three months, Auckland City Islands values rose by 9.0% Waitakere City values rose by 6.0%, and Papakura District values rose by 5.3%.
Not only are properties selling for more but QV’s Auckland valuer said they are selling more quickly.
Further, there are reports of more than 80% of properties meeting reserve and selling at mass auction events.
Provincial areas close to Auckland are also seeing values rise faster than other provincial areas around the country.
For example: Over the past three months, Hauraki District values went up by 6.5%, Waikato District values went up by 3.9%, Kaipara District values went up by 3.0%, and Thames-Coromandel District values went up by 2.3%.
Rush said this trend was probably due to the ‘Auckland effect’ as buyers look out of the city itself for more affordable property which still has proximity to the supercity.
While there was evidence of investor activity nationwide, Rush said it is markets that provide particularly good returns which continue to generate investor interest.
Currently, these markets include Hamilton, Invercargill and the Wellington apartment market.
Rush added that, nationwide, the new build market is in high demand.
This is particularly the case with first home buyers, because the 20% LVR requirement doesn’t apply to “turn key” home and land packages, and Asian buyers, who often prefer new homes.
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