Christmas a Key Time for the Property Market

Media release

11thDecember

Christmas a key time for the property market

The latest monthly property value index shows that nationwide residential values increased further in November. Values are up 1.9% over the past three months, 5.7% up over the past year, and 1.5% above the previous market peak of late 2007.

Jonno Ingerson, QV.co.nz Research Director said “the increase in nationwide values continues to be driven primarily by Auckland and Canterbury where demand continues to outstrip supply. Across the rest of the country values have been steady or increasing very slightly over the past six months. However in the last month or two many of these areas have begun to falter”.

“Outside Auckland and Canterbury the property market remains subdued as buyers are generally cautious, and there are few quality properties on the market for them to choose from. As has been the case for several years now, well presented properties in sought after areas will tend to sell quickly for good prices” said Jonno Ingerson.

“We are about to enter a traditionally quiet time of the year for house buying and selling with activity generally not picking up again until February. Since the 2008 market downturn this has tended to be a time of the year when people take stock and reconsider their options, leading to a change in the nature of the property market. Given that we have seen signs of a slight slowdown in values over the past month or two in many areas, even in parts of Auckland, it will be interesting to see what early 2013 brings” said Jonno Ingerson.

Auckland

Values in the wider Auckland areahave continued to increase and are up3.2% over the past three months and 9.3% over the past year.

Old Auckland City continues to have the steepest increase over the past 12 months, up 10.7%, with North Shore and Manukau close behind, up 8.8% and 8.2% respectively.

Values in the wider Auckland area are now 10% above the previous market peak in 2007, led by old Auckland City which is 13.4% above that mark.

QV Operations Manager Kerry Stewart said “Whilst there has been an increase in listings, demand continues to outstrip supply, particularly in central Auckland.Accessibility to the city is a key factor for many buyers, so the further out you go the more affordable the homes become. However, because people are considering properties in these outer suburbs, values are being driven up in many of these areas as well.”

“Due to sellers having to buy in the same market, they are not listing their properties as readily. The upper end of the market is taking longer to sell, however well-presented houses around $600,000 are selling very quickly” said Kerry Stewart.

Hamilton and Tauranga

Values in Hamilton have slowed a little recently, although are still2.7% above last year and 0.3% increase over the past three months.

QV ValuerNicky Harris said “Thegentle momentum that has been apparent recently seems to have eased slightly over the last couple of months. However, sales volumes and the level of enquiry from potential buyers, particularly in the inner city and more established suburbs has been healthy.”

“There is strong interest from potential buyers with auctions seeing good attendance numbers, but there is a lack of quality listings. Recently, we have also seen greater interest in renovated character homes” said Nicky Harris.

Property values in Tauranga have been up and down over the past six months, but the most recent months have started to see a decrease, leaving values down 1.2% over the last three months and 0.8% downon last year.

QV Valuer Paul Thomas said “A lot of buyers are sitting and watching the market at the moment. We are seeing many more new builds appearing, however this isn’t expected to change the current activity level.”

Wellington

Values in the Wellington area have steadied after a slight increase over the previous months but are still up 0.6% over the past three monthsand are now 1.7% up over the past year.

QV Valuer Pieter Geill said “November was a quiet month in Wellington with the market generally flat. Demand continues for well presented properties and we have also seen an improvement in the rural and lifestyle property markets recently.”

Christchurch

Christchurch values continue to rise with the past 12 months seeing a6.3% increase, and the past three months a 2.2% rise. Christchurch now sits 4.5% above the 2007 peak.

QV Valuer Daryl Taggart said “The market has become more dynamic with buyers starting to head towards previously quiet areas. These areas, which haven’t seen the same amount of growth over the last 12 months, are providing better value for money and less competition.”

“Repairs continue to be undertaken on earthquake damaged properties enabling them to be sold. Demand in the western areas has resulted in more infill subdivisions. There have been some good sales of vacant land, especially where larger sites can be found” said Daryl Taggart.

Dunedin

Values in Dunedin remain stable, up 1.2% over the past three months and still 3.7% up over the past year.

QV Valuer Tim Gibson said “The market still seems positive with sellers achieving quick sales and buyers seemingly optimistic of capital growth. Auctions are still featuring due to interest from multiple parties, although this is generally only occurring in the lower price bracket.”

Provincial centres

Most of the main provincial centres remain stable with slight increases in value over the past three months. The exceptionsareWhangarei, down 0.4%,Queenstown Lakes, down 0.4%, and Invercargill which has remained the same. However, over the past month only Queenstown Lakes has dropped with the other two areas rebounding slightly.

For media enquiries and interviews, and for further information contact:

JonnoIngerson

Research Director QV.co.nz

Tel: 04 802 1239

Mobile: 027 454 6642

Email:

For further specific comment on local areas:

Auckland. Kerry Stewart021387 106

Hamilton. Richard Allen027 2307290

Tauranga. Paul Thomas 027 544 4602

Wellington. Pieter Geill 027 230 7291

Christchurch. Daryl Taggart 027 304 9815

Dunedin. Tim Gibson 021 151 2887

Residential Property - Monthly price index
Time period: as at November 2012
Territorial authority / Average current value / 12 month change% / 3 month change % / Since 2007 market peak change %
Far North / 317,901 / 4.5% / 3.3% / -22.0%
Whangarei / 324,081 / -1.8% / -0.4% / -18.1%
Kaipara / 310,114 / -1.6% / 3.1% / -22.7%
Auckland - Rodney / 578,488 / 6.1% / 2.9% / -2.3%
Hibiscus Coast / 578,674 / 7.7% / 3.7% / -1.5%
Rodney (North) / 577,025 / 3.8% / 1.7% / -3.9%
#A / Auckland - North Shore / 696,308 / 8.8% / 3.3% / 8.6%
Coastal North Shore / 802,827 / 8.6% / 3.4% / 6.5%
North Shore Onewa / 553,658 / 10.6% / 3.7% / 11.6%
North Harbour / 668,367 / 7.1% / 2.8% / 10.0%
#A / Auckland - Waitakere / 448,545 / 8.0% / 2.8% / 5.3%
#A / Auckland - City / 707,591 / 10.7% / 3.8% / 13.4%
Auckland City (Central) / 645,975 / 12.7% / 3.8% / 13.4%
Auckland City (East) / 871,097 / 7.7% / 3.2% / 9.3%
Auckland City (South) / 626,122 / 12.8% / 4.3% / 16.3%
Islands / 643,444 / 3.7% / 2.5% / 0.7%
#A / Auckland - Manukau / 490,477 / 8.2% / 2.8% / 6.7%
Manukau East / 657,246 / 8.5% / 2.7% / 10.3%
Manukau Central / 374,070 / 7.7% / 2.8% / -0.5%
Manukau North West / 396,953 / 8.8% / 3.1% / 7.4%
#A / Auckland - Papakura / 358,175 / 7.0% / 1.8% / -0.4%
Auckland - Franklin / 395,462 / 5.2% / 1.1% / -2.5%
Thames Coromandel / 497,604 / 3.7% / 0.9% / -15.0%
Hauraki / 236,116 / -1.2% / -5.0% / -17.3%
Waikato / 263,080 / 3.0% / 2.2% / -18.8%
MatamataPiako / 260,488 / 0.0% / 0.6% / -13.0%
# / Hamilton / 338,384 / 2.7% / 0.3% / -8.6%
Hamilton North East / 419,349 / 1.9% / 0.2% / -6.7%
Central City/North West / 319,319 / 3.7% / 0.5% / -10.8%
Hamilton South East / 314,074 / 1.7% / 0.3% / -10.2%
Hamilton South West / 304,517 / 3.7% / -0.2% / -11.0%
Waipa / 316,819 / 4.0% / 1.5% / -6.3%
Otorohanga / N/A / N/A / N/A / N/A
South Waikato / 133,348 / -1.5% / -1.5% / -18.3%
Waitomo / N/A / 7.1% / 4.0% / -33.5%
Taupo / 346,890 / 0.0% / 1.1% / -14.5%
Western BOP / 401,120 / -0.6% / 3.8% / -11.9%
# / Tauranga / 423,865 / -0.8% / -1.2% / -11.8%
Rotorua / 272,774 / 1.4% / 1.2% / -12.2%
Whakatane / 299,477 / -0.7% / 3.2% / -13.8%
Kawerau / N/A / N/A / N/A / N/A
Opotiki / N/A / N/A / N/A / N/A
Gisborne / 228,061 / -4.5% / 0.3% / -24.5%
Wairoa / N/A / N/A / N/A / N/A
Hastings / 292,469 / 2.0% / 0.5% / -6.9%
# / Napier / 316,256 / -0.1% / 0.5% / -7.4%
Central Hawkes Bay / 210,976 / 1.7% / -1.3% / -21.3%
New Plymouth / 324,197 / 2.7% / 1.2% / -3.1%
Stratford / 196,938 / -0.8% / -1.4% / -9.4%
South Taranaki / 186,539 / 3.6% / 2.5% / -6.1%
Ruapehu / 145,102 / -2.1% / 0.8% / -20.0%
Wanganui / 190,873 / 0.6% / 0.6% / -12.9%
Rangitikei / 144,589 / -6.9% / -2.9% / -19.6%
Manawatu / 228,552 / 1.3% / -2.0% / -10.0%
# / Palmerston North / 281,065 / 2.5% / 1.0% / -6.5%
Tararua / 151,098 / -0.2% / 2.2% / -13.3%
Horowhenua / 196,220 / -3.3% / 0.0% / -17.9%
Kapiti Coast / 358,936 / 1.3% / 1.6% / -6.5%
#W / Porirua / 368,496 / 2.2% / -0.3% / -3.8%
#W / Upper Hutt / 325,543 / 0.6% / 0.1% / -8.3%
#W / Hutt / 361,461 / 1.0% / 0.9% / -8.9%
#W / Wellington / 513,766 / 1.8% / 0.7% / -4.4%
Wellington City & Southern Suburbs / 520,634 / 0.7% / 0.7% / -7.1%
Eastern Suburbs / 555,536 / 3.2% / 0.3% / -3.6%
North Wellington / 452,260 / 1.9% / 0.7% / -3.0%
Western Suburbs / 586,813 / 1.1% / 0.6% / -3.4%
Masterton / 239,601 / -0.3% / 1.7% / -17.2%
Carterton / 244,145 / 1.9% / 0.8% / -11.6%
South Wairarapa / 283,978 / 2.0% / 0.1% / -17.1%
Tasman / 395,946 / 2.0% / 1.1% / -0.6%
# / Nelson / 386,000 / 1.4% / 1.5% / 1.1%
Marlborough / 337,978 / 0.3% / 0.7% / -13.4%
Kaikoura / 350,298 / 3.7% / 4.3% / -20.0%
Buller / 224,635 / 11.2% / -0.1% / 8.2%
Grey / 219,534 / -1.8% / -0.9% / -8.9%
Westland / 223,076 / -1.0% / -3.2% / -10.1%
Hurunui / 320,735 / 5.3% / 1.9% / 1.3%
Waimakariri / 363,619 / 11.8% / 1.2% / 14.0%
# / Christchurch / 400,496 / 6.3% / 2.2% / 4.5%
East / 307,913 / 3.4% / 1.1% / -0.5%
Hills / 561,168 / 7.7% / 1.1% / 1.5%
Central City and North / 460,738 / 6.8% / 2.9% / 4.1%
Southwest / 369,829 / 8.0% / 2.8% / 8.9%
Banks Peninsula / 471,800 / 6.7% / 2.5% / -1.8%
Selwyn / 435,775 / 12.3% / 0.7% / 15.5%
Ashburton / 287,205 / 11.3% / 1.4% / 2.5%
Timaru / 261,116 / 6.4% / 2.5% / 3.3%
MacKenzie / 265,738 / -1.0% / -0.5% / -10.1%
Waimate / 173,549 / -0.9% / -5.9% / -9.5%
Waitaki / 216,062 / 1.3% / -0.2% / -5.5%
Central Otago / 296,092 / 3.5% / 1.2% / -6.8%
Queenstown Lakes / 614,249 / 2.6% / -0.4% / -14.1%
# / Dunedin / 279,275 / 3.7% / 1.2% / -2.6%
Central/Northern City / 286,720 / 1.4% / 1.5% / -5.0%
Peninsula/Coastal Dunedin / 259,777 / 3.0% / 1.6% / -4.0%
Southern City / 269,756 / 6.0% / 1.4% / -5.5%
Taieri / 287,934 / 4.3% / 0.4% / -2.0%
Clutha / 159,675 / -4.0% / -4.0% / -12.0%
Southland / 202,234 / -5.4% / -2.8% / -13.1%
Gore / 176,858 / 0.3% / -4.7% / 0.0%
# / Invercargill / 205,035 / 1.3% / 0.0% / -8.6%
Auckland Area / 601,853 / 9.3% / 3.2% / 10.0%
Wellington Area / 435,468 / 1.7% / 0.6% / -5.3%
# / Main Urban Areas / 479,719 / 6.8% / 2.3% / 4.6%
Total NZ / 421,497 / 5.7% / 1.9% / 1.5%
Notes on the above data:
1. The information included in the above table is based on the monthly property value index. This index is calculated based on the sales data entered into PropertyIQ's system in the previous 3 month period. For example, information for the period ending June will be calculated based on sales entered between April 1 and June 30.
2. The average current value is the average (mean) value of all developed residential properties in the area based on the latest index. It is not an average or median sales price, as both of those only measure what happens to have sold in the period.
3. The percentage change over three months, twelve months and since the 2007 market peak are based on the change in the property value index between that time and the current.
4. Any of the statistical data shown in italics are calculated based on a sample set of data that is less than the recommended minimum. These results should be used with caution. Those showing N/A had too few sales to generate an index