The latest monthly QV House Price Index shows that nationwide residential property values for August have increased 11.3% over the past year. Values rose 3.9% over the past three months and are now 29.0% above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 11.0% and values are now 10.2% above the 2007 peak.
The Auckland market has increased 20.4% year on year, 5.6% over the past three months and 60.1% since 2007. When adjusted for inflation values are 20.1% over the past year and are 36.7% above the 2007 peak.
QV National Spokesperson Andrea Rush said, “Values in Auckland continue to rise rapidly at the fastest rate since mid-2004 with the market there continuing to be driven by high net migration and lack of supply.
“The upward trend in values seen in upper north island centres near Auckland is also continuing with the Hamilton market now accelerating and values in Tauranga, Whangarei, Hastings, and the Hauraki District continuing to rise.”
“The Wellington and Christchurch markets remain relatively flat while the Dunedin market is showing a steady rise in values.”
“High prices and lower yields in the Auckland market appear to be encouraging investors to look to regional centres around the country for investment properties.”
“The new rules set to come in over the next couple of months requiring a 30% deposit for investment property in the Auckland region and a softening of the LVR for the regions may also be a factor incentivising this activity.”
“More listings are coming onto the market with the coming of spring but with sales numbers up by 25% compared to this time last year stock levels remain tight in many places.”
“While recent events on the global economic landscape, such as China’s stock market dropping dramatically, have impacted on business and consumer confidence in New Zealand, there is no sign that they have impacted on the housing market at this stage.”comments powered by Disqus