by Miriam Bell
According to this month’s QV Residential Price Movement Index, nationwide residential property values have also gone up.
Once adjusted for inflation, they have increased by 8.2% over the past year and and values are now 5.0% above the 2007 peak.
This means the average value nationwide is now $507,040.
QV national spokesperson Andrea Rush said the steepening of the national index is indicative of the sharp rise in Auckland values over the past six months.
“While Hamilton, Tauranga, Wellington and Christchurch have continued to show a steady, moderate rise in values, Auckland has continued its rapid rise, with many areas seeing double digit increases in values since November.”
Rush said the index data showed that the Auckland region’s average value has cracked the $800,000 mark: it is now $809,200.
“With net migration at a record 54,000 and still rising and 50% of migrants moving to Auckland, home values in the Super City are likely to remain high and keep rising during 2015 as supply continues to outstrip demand.”
Auckland’s values were led by big increases in Auckland City-South – which includes suburbs like Blockhouse Bay, Sandringham, Otahuhu and Onehunga.
Outside of Auckland, parts of the Waikato (including Hamilton) and Tauranga recorded value increases.
QV valuers from these areas said this was partly due to the “Auckland effect” – whereby Aucklanders look outside the Super City region for areas where they can get better value for their money.
Hamilton valuer Chris Price pointed to Pokeno as another example of the “Auckland effect”.
“It is still resulting in plenty of new-build activity and the housing development there is approaching its fifth stage well ahead of schedule with further stages been developed for release.”
Meanwhile, home values in the other major centres presented a mixed bag.
In the Wellington region, values were varied - with values in some areas increasing, some remaining flat and some decreasing.
In the Christchurch region, values mainly increased, although a couple of areas recorded a slight decline.
Values in Christchurch City itself recorded an increase of 4.7%* over the past year, which leaves the median value at $473,053.
Rush said Dunedin is the only main centre where values have decreased slightly since February.
“The housing market there - along with many other provincial towns around the country - is showing flat or decreasing home values as the LVR restrictions continue to make it difficult for first home buyers to enter the market.”
* Not adjusted for inflation.
| « No signs of a breather for Auckland | Auckland price rises: a lesson in supply & demand » |
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