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House values across the Wellington region rose 8.4% in the year to March and increased 2.2% over the past quarter; the average value is now $702,896.
Press Release – QV Valuations
The latest QV House Price Index shows that Wellington City values increased 7.9% year on year and by 1.9% over the past three months; the average value there is now $828,645.
Values in Upper Hutt rose 12.3% year on year and 2.9% over the past three months; Lower Hutt rose 8.2% year on year and by 3.0% over the past quarter; Porirua rose 8.9% year on year and by 1.1% over the past quarter. Finally, the Kapiti Coast rose 6.8% year on year and 1.7% over the past three months.
QV Wellington Senior Consultant, David Cornford said: “A lack of stock combined with strong buyer demand is underpinning the Wellington property market and this is resulting in a buoyant market and values continuing to track upwards.”
“The lower end of the market is seeing the greatest level of enquiry, as first home buyers remain very active in the region particularly in the Hutt Valley and Porirua where a modest home can still be purchased for less than $450,000.”
“The Hutt City and Upper Hutt have recorded the strongest value growth over the last three months at 3% and 2.9% respectively. These regions offer more affordable housing and it is this segment of the market which is performing the strongest.”
“There is strong demand for architecturally designed, low maintenance properties that are relatively affordable. These properties generally have more modest sections compared to the traditional New Zealand family home. As a result, we are seeing new developments of townhouses in the region attracting strong interest and selling quickly.”
“Despite the recently announced minimum standard rental rules and the possibility of ring fencing of rental losses; investors remain active. We’re seeing purpose built, multi flat properties attracting a good level of interest, with rents continuing to track upwards combined with the expectation of continued low interest rates helping to support this segment of the market.”
QV Property Consultant Rupert Yortt observed similar trends in the city, commenting, “There’s been a good level of interest for any new development projects, particularly townhouses.”
“Stock numbers in the city have increased noticeably since a severe shortage last Winter. There is a bit more choice for purchasers at the moment however online listing numbers are still below the long term average.”
Affordability constraints have put the brakes on national value growth, particularly in high-value regions. Dunedin continues to see the strongest value growth out of all the main centres, with an average value of $451,199 – well below the national average of $686,523. Residential property value growth across the Auckland Region decreased by 1.5% year on year and by 0.8% over the past quarter. The average value for the Auckland Region is now $1,039,917.
For a full breakdown of the QV House Price Index figures for March please click here
QV General Manager, David Nagel said, “Our latest figures show that value growth continues to slow overall, with the national annual growth rate dropping from 7.3% in March last year to a current rate of 2.6%. Affordability constraints are a key factor behind this slowdown, particularly in areas such as Auckland City which has an average value of $1,230,817. The strongest value growth are generally being seen in areas such as Rotorua and the Hawkes Bay.”
“Rotorua, in particular, experienced a notable increase in average value, up 7.0% with an average value of $472,566. This region appears to be attracting buyers possibly priced out of the nearby Tauranga and Auckland markets.”
“We’re seeing increased demand for different types of housing, such as low maintenance, architecturally designed townhouses in Wellington…………
Continue reading this article at the original source from Scoop Wellington
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