New Zealand: August 2007 Property Update

Quotable Value has released August’s figures for New Zealand’s housing market. The average price of a house in New Zealand has risen to £135,067 ($394,397) from July’s £130,581 ($381,298). New Zealand’s average house prices are not directly comparable with the UK’s because, unlike the UK, the average home in New Zealand is a detached bungalow.

QV spokesperson Blue Hancock said:

“Across the country, year on year growth in property values remains strong. Reduced winter listings have been matched by less buyer activity, creating a balance in the market and resulting in prices still holding up in most areas.”

House Prices in New Zealand
Three Months Ending August 2007

Location Average House Price (NZ$) Average House Price (£) Comments
Auckland Region $504,860 £172,897 Property values in the Auckland region grew by 13.1% over the past year up from 11.9% reported last month. Valuers reported patchy market activity across the region. There is evidence of properties staying on the market for 6-8 weeks. Properties at the lower end of the market and the more highly priced ones are slower to move, in comparison to the medium priced suburbs.
Hamilton $358,944 £122,926 Hamilton’s property values increased by 14.1% over the past year. The property market in Hamilton still shows its resilience with the value growth for the city higher than last month. North East 14.3% and South East Hamilton 13.1% reported slight increases in annual growth rates. However, there are signs that the market is beginning to ease with South West Hamilton dropping to 12.2% and North West Hamilton static at 12%.
Wellington Region $448,267 £153,516 Property values in the Wellington region increased by 16.5% over the past year. Increases in property values have been steady in the Wellington Region, with Upper Hutt and Lower Hutt continuing to lead the market with 21.5% and 20% respectively. The western part of Wellington City is the highest priced area with an average price of over $570,000 (£195,205).
Christchurch $359,809 £123,222 The Christchurch market continued to strengthen with residential property values growing at 14.1%. The lower end of the market dominated by first home buyers and investors is very active, which fuels the growth in the city. Nearly 75% of Christchurch sales are in the under $400,000 bracket. Less competition and interest is seen in the upper end of the market.
Dunedin $271,703 £93,048 Dunedin’s residential property values increased by 9.6% over the past year. Different patterns of the property growth are seen across the city. The northern city 7.3% and southern city 9.1% are growing at slower rates than last month while Taieri 12% and the coastal/peninsular location 16% report further increases in annual growth.
Tauranga $433,748 £148,543 Property values in Tauranga increased by 7% over the past year.The growth rate was similar to that reported last month (6.5%).

* Assumed exchange rate is £1 = NZ$2.92

10 September, 2007

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