by Miriam Bell
The latest monthly QV Residential Price Movement Index shows that property values nationwide increased by 8.9%* over the past year.
They are now 6.5%* above their 2007 peak.
QV national spokesperson Andrea Rush said the steepening line of the national index reflects values increases across all the main centres over the past three months – bar Wellington which recorded a slight decrease.
National values have risen at the fastest annual rate in 15 months, she said.
“But the Auckland market continues to drive this as it continues its meteoric rise with values in the SuperCity region rising at the fastest annual rate since mid-2004.”
Auckland City-South posted the region’s highest annual increase with values rising a massive 20.2% year on year and 6.2% over the past three months alone.
Rush said the usual winter downturn doesn’t seem to have dampened demand, which is being fuelled by high migration, low interest rates and a constrained housing supply.
To date, there has been no obvious impact from new measures, aimed at taking the heat out of the Auckland market, announced by the Reserve Bank and the government last month, she said.
QV’s Auckland representative James Wilson added that investors remain very active in the market, fuelled by low interest rates and strengthening prices.
Many are now opting to refinance and re- invest in capital upgrading across their portfolios, capitalising on historically low interest rates, he said.
“Demand for property with development potential is also strong… Including large dwellings, traditionally not considered to offer viable subdivision potential, now being purchased by developers who intend to demolish / remove existing improvements, sub divide and build.”
The high demand in Auckland also now appears to be spreading to provincial centres close to Auckland.
Rush said that values are up in Tauranga, Hamilton, Cambridge, Pokeno and towns in the Hauraki District.
QV valuers from Hamilton and Tauranga confirmed that they have been seeing a lot of interest from Auckland investors in their respective markets.
Meanwhile, the annual rate of value increases in Christchurch is continuing to slow.
This is further evidence that the supply of repaired and newly built homes on the market is now starting to meet demand for homes there, Rush said.
“However, the market however continues to show plenty of activity and good prices are being achieved at auctions for desirable properties in sought after locations.”
*adjusted for inflation
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