tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, May 20th, 6:17PM

News

rss
Latest Headlines

Softening market may be short-lived

Auckland values are down for the second consecutive month, but the decline may not last, according to Quotable Value (QV).

Wednesday, March 2nd 2016, 12:00PM

by Miriam Bell

Values in the Auckland region have dropped by 0.7% over the last three months, the latest QV House Price Index shows.

In February, the average residential property value in the Auckland region was $925,656. This was down on January’s average value of $928,921.

The Auckland region recorded a 17.8% year-on-year increase, which left values 69.4% over the 2007 market peak.

Once adjusted for inflation, values were up 17.7% year-on-year and are 44.7% higher than in 2007.

QV national spokesperson Andrea Rush said the drop in values is a continuation of the softening in the market seen in response to the introduction of the new tax and LVR measures.

“However, over the past couple of weeks, activity levels have started to pick up across the SuperCity, so it’s possible the drop in values may be short lived.”

Further, while values in central Auckland, the North Shore, Manukau and Waitakere decreased, values in the outer fringe areas of Papakura, Franklin and Rodney have continued to rise.

QV Auckland valuer James Wilson also thought the softening in Auckland’s market might not last.

He said activity levels remain low compared to the first nine months of 2015, but the “wait and see” approach of late last year appears to be subsiding among investors.

In his view, many investors now appear willing to re-enter the market.

“Auction campaigns are still producing lower clearance rates than last year, but post-auction negotiations are proving successful in increasing numbers, attendance is also up and clearance rates are rising.”

Meanwhile, nationwide values have increased.

The average value nationwide hit $556,306 in February, as compared to $556,206 in January.

This was an increase of just 0.1% over the past three months, but of 11.6% year-on-year, and it leaves values 34.3% above the 2007 peak.

Once adjusted for inflation, values were up 11.5% year-on-year and are 14.7% above the 2007 peak.

Rush said that, with the exception of Auckland, values in the main centres have gone up.

For example, there was strong growth in values in Whangarei (up 4.9%), Tauranga (up 7.4%), Hamilton (up 4.6%), Napier (up 4.1%), Wellington (up 4.7%) and Queenstown (up 6.1%) over the past three months.

Values in Christchurch and Dunedin are also rising, but at a much more moderate pace, she said.

“Regional areas within commuting distance to Auckland are also still benefiting from buyers looking for more affordable housing or rental property.

“Values are up more than 5.0% in the Kaipara, Waikato and Hauraki Districts over the past three months.”

Other than Auckland, the only places to see values decrease in the past three months were Stratford in the North Island and Ashburton, Waimate and the West Coast districts of Buller and Grey in the South Island.

Rush added that listings levels remain low in most parts of the country, despite more properties coming onto the market during February.

« Auckland soars to new recordShaking off the summer lull »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
CFML Loans ▲6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 ▲4.29 ▲5.09 ▲5.35
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - ▲4.19 - -
The Co-operative Bank - Owner Occ 5.45 ▲4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 ▲4.79 5.69 5.95
TSB Bank 5.59 ▼5.14 ▼5.79 6.15
TSB Special 4.79 ▼4.34 ▼4.99 5.35
Unity 5.65 4.80 5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 19 May 2022 10:42am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com