Summer stirring for house prices, except in Auckland

Wednesday, 6 December 2017

Auckland values are down 0.5 per cent, year-on-year, according to QV.

House price growth picked up in November but Auckland is still dragging.

QV's latest statistics show, nationwide, house prices were up 6.4 per cent in the year to November, compared to annual growth of 3.9 per cent in October.

But in Auckland, they are down 0.5 per cent on the same time the year before, the slowest rate since March 2011. Christchurch's prices also softened, down 1.5 per cent.

QV senior consultant James Steele said values were holding in sought-after areas of Auckland but had fallen in places that were further away from the CBD.

* Curries hinder Queenstown home search**

'An oversupply in some areas of Manukau is continuing to cause a decrease in prices, particularly in large new subdivisions which are above the median house price while in parts of Waitakere values have also dropped back some suburbs.'

Hastings had the biggest increase in prices compared to the year before, at 18 per cent.

Spokeswoman Andrea Rush said nationwide house prices were up 3.6 per cent over the past three months, led by Wellington, Dunedin and a number of regional centres.

Values across the whole Wellington region rose 9.8 per cent in the year to November. In Dunedin, prices are up 13.1 per cent for the year.

'However, values in Hamilton and Tauranga ticked down slightly and some areas to the south and north of Auckland that have seen very strong growth in recent years also saw values drop significantly including the Kaipara and Hauraki Districts both down around 4 per cent over the past quarter,' she said.

Things could pick up further over the coming months.

'The easing in loan-to-value restrictions in January and retail banks' lending criteria is likely to help improve activity and demand in the housing market as we move through the summer months but it's possible the usual slow-down over the Christmas period may mean we don't see the full impact of this until February and March next year.'

It is not just house prices that are rising in Wellington – pressure on rents continues.

QV Wellington senior consultant David Cornford said property investors had talked about 'evaluating their property portfolios' due to the government announcements about minimum standards to be introduced for rented homes.

'There is strong upwards pressure on rents throughout the region with demand out stripping supply for rental properties.'