Property market continues to strengthen
QV’s March statistics for the residential property market report a 9.8% growth in national property values over the past year (calculated over the three months ending March 2007 in comparison to the same period last year). The growth rate increased from 9.3% reported in February. Over this period, the average sale price for New Zealand properties was $363,188.
“The residential market is again showing strong signs on the back of buoyant demand†said QV spokesperson Mark Dow. “General economic confidence is high and the employment picture is positive with low unemployment figures. Buyers appear to continue to show confidence in the market and are willing to pay higher prices.â€Â
The property values in the main urban centres continue to strengthen with Auckland City up 5.9%, Wellington City 12%, Christchurch 10.7% and Dunedin 7.3%. Hamilton’s property values grew at 12.2%, the same rate as recorded last month.
Of the provincial cities, increases in growth rates were recorded in Porirua 14.1%, Palmerston North 13.1%, Nelson 10.1% and New Plymouth 9.9%. Annual growth eased slightly in Wanganui 13.8%, Rotorua 11.8%, Queenstown 4.6%, and Hastings 3.9%.
Main Urban Areas Commentary:
Auckland:
Property values in the Auckland region grew 7.5% (calculated over the three months ending March 2007 in comparison to the same period last year), up from 6.9% last month. The average sale price for the region was $462,028.
“The Auckland region, from Rodney through to Franklin, has continued to show positive annual growth, with most cities and districts showing slightly higher growth rates compared to last month. This positive trend was also shown in the average sale prices reported in most areas†said Glenda Whitehead of QV Valuations.
“Market activity remains very positive, with properties selling quickly, sometimes in less than a week. The bulk of sales continues to occur in the under $500,000 bracket in the Auckland region†said Whitehead. “North Shore, Auckland and Manukau cities show greater sales volumes for properties over $600,000. This is perhaps reflective of the type of housing and the desirability of living in these cities. Land values have risen significantly in recent years in the more desirable suburbs such as Takapuna and Devonport on the North Shore, Herne Bay, Remuera and the Eastern Bays within Auckland City, and the coastal suburbs such as Bucklands Beach and the bays within Manukau.â€Â
Hamilton:
Hamilton’s property values increased by 12.2% (calculated over the three months ending March 2007 in comparison to the same period last year), the same growth rate as reported last month. The city’s average sale price was $338,226.
“Annual growth in property values in Hamilton remained stable for the period ending March†said Richard Allen of QV Valuations. “All areas of the city experienced marginal changes from what we reported last month with North East Hamilton up to 11.9% and Central City/North West Hamilton to 11.8%. South East Hamilton and South West Hamilton eased marginally to 11.2% and 10.6% respectively.â€Â
“Although overall property value growth remained stable, the average sale price in Hamilton increased by $7000 to $338,226. Expectations are that sales activity will level off as we enter the autumn months and sale prices will remain relatively static†said Mr Allen.
Tauranga:
Tauranga property values grew 2.4% (calculated over the three months ending March 2007 in comparison to the same period last year), up from 2.0% reported last month and back to the same level reported in January.
“Small fluctuations in annual growth over the past few months reflect a stable property market†said Christopher Boyd of QV Valuations. “The average sale price increased from $412,490 last month to $414,165 this month and is consistent with the increase in property values.â€Â
“Recent anecdotal evidence suggests an improvement in sales volumes and buyer confidence as we enter autumn. This appears to be supported by a greater number of sold signs appearing on marketed property†said Mr Boyd. “Demand for properties over the million dollar range seems to be volatile with a limited number of potential buyers.â€Â
Wellington:
Property values in the Wellington region increased by 13.5% (calculated over the three months ending March 2007 in comparison to the same period last year). The average sale price for the region was $479,487.
“Wellington’s property market continues to climb with annual growth the highest since May last year†said Max Meyers of QV Valuations. “The strongest annual growth in the region was experienced in Lower Hutt with property values growing at 16.5%.â€Â
“Within Wellington City, the Central City/Southern Suburbs area had the lowest increase at 9.7%, but still achieved an average sale price increase of over $50,000 over the past year†said Mr Meyers. “The highest increase in sale prices was in the Western suburbs of the city (including Karori, Northland, and Kelburn) where average sale prices have increased annually by $100,000 to $562,530†said Mr Meyers.
“Wellington market conditions, which strongly favour sellers at present, are not expected to moderate in the next few months†said Mr Meyers.
Christchurch:
Christchurch property values increased by 10.7% over the past year (calculated over the three months ending March 2007 in comparison to the same period last year), up from 9.8% reported last month. The city’s average sale price was $349,121.
“The provincial areas of Canterbury and Westland provided mixed results with Waimakariri, Ashburton, Timaru and Buller recording increases in growth rates, offset by easing growth in Hurunui, Banks Peninsula, Selwyn, Waimate, Grey and Westland. However, most areas show higher average sale prices in comparison to last month†said Mark Dow of QV Valuations.
“The team of QV Valuers in the Canterbury region continue to report a positive market with good levels of activity and competition for properties resulting in firm prices for most property types†said Mr Dow.
Dunedin:
Dunedin residential property values increased by 7.3% (calculated over the three months ending March 2007 in comparison to the same period last year), up from 6.1% last month. The average sale price in Dunedin was $261,388.
“QV statistics show a slight increase in annual growth since October 2006 following a period of decline in annual growth through 2005 and the majority of 2006. This growth has occurred in spite of increases experienced in interest rates over the same period. The growth pattern is similar to the other main centres in New Zealand.†said David Paterson of QV Valuations.
“Growth is steady across most areas in Dunedin, with the Peninsular/Coastal part of the city experiencing the highest growth rate of 11.4% this month†said Mr Paterson.
“The residential market is again showing strong signs on the back of buoyant demand†said QV spokesperson Mark Dow. “General economic confidence is high and the employment picture is positive with low unemployment figures. Buyers appear to continue to show confidence in the market and are willing to pay higher prices.â€Â
The property values in the main urban centres continue to strengthen with Auckland City up 5.9%, Wellington City 12%, Christchurch 10.7% and Dunedin 7.3%. Hamilton’s property values grew at 12.2%, the same rate as recorded last month.
Of the provincial cities, increases in growth rates were recorded in Porirua 14.1%, Palmerston North 13.1%, Nelson 10.1% and New Plymouth 9.9%. Annual growth eased slightly in Wanganui 13.8%, Rotorua 11.8%, Queenstown 4.6%, and Hastings 3.9%.
Main Urban Areas Commentary:
Auckland:
Property values in the Auckland region grew 7.5% (calculated over the three months ending March 2007 in comparison to the same period last year), up from 6.9% last month. The average sale price for the region was $462,028.
“The Auckland region, from Rodney through to Franklin, has continued to show positive annual growth, with most cities and districts showing slightly higher growth rates compared to last month. This positive trend was also shown in the average sale prices reported in most areas†said Glenda Whitehead of QV Valuations.
“Market activity remains very positive, with properties selling quickly, sometimes in less than a week. The bulk of sales continues to occur in the under $500,000 bracket in the Auckland region†said Whitehead. “North Shore, Auckland and Manukau cities show greater sales volumes for properties over $600,000. This is perhaps reflective of the type of housing and the desirability of living in these cities. Land values have risen significantly in recent years in the more desirable suburbs such as Takapuna and Devonport on the North Shore, Herne Bay, Remuera and the Eastern Bays within Auckland City, and the coastal suburbs such as Bucklands Beach and the bays within Manukau.â€Â
Hamilton:
Hamilton’s property values increased by 12.2% (calculated over the three months ending March 2007 in comparison to the same period last year), the same growth rate as reported last month. The city’s average sale price was $338,226.
“Annual growth in property values in Hamilton remained stable for the period ending March†said Richard Allen of QV Valuations. “All areas of the city experienced marginal changes from what we reported last month with North East Hamilton up to 11.9% and Central City/North West Hamilton to 11.8%. South East Hamilton and South West Hamilton eased marginally to 11.2% and 10.6% respectively.â€Â
“Although overall property value growth remained stable, the average sale price in Hamilton increased by $7000 to $338,226. Expectations are that sales activity will level off as we enter the autumn months and sale prices will remain relatively static†said Mr Allen.
Tauranga:
Tauranga property values grew 2.4% (calculated over the three months ending March 2007 in comparison to the same period last year), up from 2.0% reported last month and back to the same level reported in January.
“Small fluctuations in annual growth over the past few months reflect a stable property market†said Christopher Boyd of QV Valuations. “The average sale price increased from $412,490 last month to $414,165 this month and is consistent with the increase in property values.â€Â
“Recent anecdotal evidence suggests an improvement in sales volumes and buyer confidence as we enter autumn. This appears to be supported by a greater number of sold signs appearing on marketed property†said Mr Boyd. “Demand for properties over the million dollar range seems to be volatile with a limited number of potential buyers.â€Â
Wellington:
Property values in the Wellington region increased by 13.5% (calculated over the three months ending March 2007 in comparison to the same period last year). The average sale price for the region was $479,487.
“Wellington’s property market continues to climb with annual growth the highest since May last year†said Max Meyers of QV Valuations. “The strongest annual growth in the region was experienced in Lower Hutt with property values growing at 16.5%.â€Â
“Within Wellington City, the Central City/Southern Suburbs area had the lowest increase at 9.7%, but still achieved an average sale price increase of over $50,000 over the past year†said Mr Meyers. “The highest increase in sale prices was in the Western suburbs of the city (including Karori, Northland, and Kelburn) where average sale prices have increased annually by $100,000 to $562,530†said Mr Meyers.
“Wellington market conditions, which strongly favour sellers at present, are not expected to moderate in the next few months†said Mr Meyers.
Christchurch:
Christchurch property values increased by 10.7% over the past year (calculated over the three months ending March 2007 in comparison to the same period last year), up from 9.8% reported last month. The city’s average sale price was $349,121.
“The provincial areas of Canterbury and Westland provided mixed results with Waimakariri, Ashburton, Timaru and Buller recording increases in growth rates, offset by easing growth in Hurunui, Banks Peninsula, Selwyn, Waimate, Grey and Westland. However, most areas show higher average sale prices in comparison to last month†said Mark Dow of QV Valuations.
“The team of QV Valuers in the Canterbury region continue to report a positive market with good levels of activity and competition for properties resulting in firm prices for most property types†said Mr Dow.
Dunedin:
Dunedin residential property values increased by 7.3% (calculated over the three months ending March 2007 in comparison to the same period last year), up from 6.1% last month. The average sale price in Dunedin was $261,388.
“QV statistics show a slight increase in annual growth since October 2006 following a period of decline in annual growth through 2005 and the majority of 2006. This growth has occurred in spite of increases experienced in interest rates over the same period. The growth pattern is similar to the other main centres in New Zealand.†said David Paterson of QV Valuations.
“Growth is steady across most areas in Dunedin, with the Peninsular/Coastal part of the city experiencing the highest growth rate of 11.4% this month†said Mr Paterson.