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Auckland drags up NZ house prices

Auckland’s residential property values increased by 18.8% in the last year and that has led to an upswing of activity in other upper North Island markets, according to new QV data.

Tuesday, August 4th 2015, 12:24PM

by Miriam Bell

The latest QV House Price Index shows that Auckland values have gone up by 5.7% in the last three months, 18.8% year-on-year, and 55.6% since the last market peak in 2007.

When adjusted for inflation, they are up by 18.5% year-on-year and are 33.7% over the 2007 peak.

This means the average residential property value in the Auckland area is now $855,672.

The SuperCity’s rising values continue to have an impact on nationwide values - which increased by 4.1% over the past three months and by 10.1% over the last year.

This was the fastest annual increase since 2007 and has left nationwide values at 27.4% above the 2007 market peak.

When adjusted for inflation, the rise in annual values comes in at 9.9%, leaving values 8.8% higher than in 2007.

The average residential property value nationwide is now $527,760.

Not only are Auckland’s values driving the index up, but they are leading buyers to look outside of the Auckland market which is influencing house prices in other markets.

QV national spokesperson Andrea Rush said there was a definite upward swing in market activity in the upper North Island.

This was especially evident in Hamilton, but also in Tauranga, Whangarei, and the Franklin, Hauraki and Waikato Districts.

For example, the average home value across the Hamilton City area is now $390,113.

Rush said QV’s index is showing a steepening upward trend as values track upward by 7.4% year-on-year and 3.8% over the past three months.

In Whangarei, values increased by 5.0% year-on-year, while the Far North District was up 5.4% and the Hauraki District rose by 10.7% over the same period.

Values in Tauranga City continued the upward trend seen over the past few months. They rose 7.7% year-on-year and 3.0% over the past three months.

Western Bay of Plenty values also went up. They have increased by 5.9% since July last year and 3.3% since May.

Rush said valuers in Wellington and Dunedin have also been reporting increased interest and activity from Auckland investors.

Net migration remains at record highs and there are now incentives for new migrants to move to areas outside of Auckland, she continued.

“So this coupled with record low interest rates is likely to see continued upward pressure on home values as we move towards spring.”

Meanwhile, back in the Super City Region, values are up across all areas of the market.

QV’s Northern homevalue operations manager Jan O’Donoghue said there is not enough existing stock, or new homes being built, to accommodate the demand for housing in Auckland.

Investors are very active particularly in suburbs that offer the most affordable housing like Mt Roskill, Massey, Te Atatu and New Lynn and Papakura, she said.

“There is high demand for home and income type properties and any sites with development or subdivision potential.

“High numbers of apartments have also been selling off the plan in central Auckland as demand for more affordable homes reaches a crescendo.”

« Record house price expectations Has the Auckland market reached its price limit? »

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AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
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Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 ▼8.09 ▼7.59 ▼7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 ▼9.09 ▼8.59 ▼8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

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