New Zealand Housing Market Strengthens

The average sale price of a house in New Zealand was $387,567 (£181,275) in September, an increase from $385,426 in August. Over the calander year, there has been a 1.1 percent drop in property values, an improvement on the 2.8% annualised fall last month. The continued fall in sterling against the New Zealand dollar has also increased the cost of buying a NZ home for prospective British migrants.

Commenting on house prices in New Zealand, Quotable Value’s spokesperson Glenda Whitehead said: “There are signs of more activity in the market with an increase in the number of sales and more listings in many areas. This increase in activity is normal for Spring but there is still a feeling that activity levels are below normal, with somewhat fewer listings to date this spring than was expected. There is strong competition among keen buyers in some localities and price brackets for the limited properties available. This competition is pushing up many sale prices, as previously unsuccessful bidders offer higher prices in an attempt to secure a property. With prices in some localities rising, this will likely encourage more sellers to put their properties on the market as their price expectations come closer to being met.”

House Prices in New Zealand
Three Months Ending September 2009

Location	Average House Price (NZ$)	Comments
Auckland Region	$507,617 (£237,426)	Property values in the Auckland region increased by 0.6% over the past year. There is strong demand in the $600,000 to $1 million price bracket in Auckland City suburbs including Mt Eden, Remuera, and Ponsonby, with some intense bidding and short sale periods. On the other hand, in Waitakere there is strong demand in the $330,000 to $420,000 range, with the shortage of listings creating multi-offer situations and very quick sale periods. Similarly, on the North Shore, the low to middle end of the market seems to be the most popular, with buyers ranging from those wanting to down-size their mortgage, to those on the lookout for a bargain.
Hamilton	$344,971 (£161,352)	Hamilton’s property values decreased by 0.9% over the past year. After six consecutive months of residential property value growth, Hamilton City has stalled, and is actually showing a slight decline in property values during September. Two of the four areas of the city experienced year on year declines; 1.6% in Hamilton North East and 2.4% in the South West part of the city.
Wellington Region	$436,633 (£204,225)	Wellington’s property values increased by 1.1% over the past year. Values have slowly but surely crept up over the last few months, with the typical spring flush yet to eventuate, and therefore yet to take buying pressure off existing housing stock. Subsequently the average number of days required to sell a property continues to fall. In short, this is a seller’s market.
Christchurch	$348,922 (£163,200)	Property values in Christchurch increased by 0.4% over the past year. The market is still showing clear segmentation in Christchurch, with the level of activity strongest in the $350,000 and under part of the market, closely followed by the $350,000 to $500,000 price range. Local agents continue to report a shortage in listings which is putting buying pressure on properties currently for sale.
Dunedin	$258,103 (£120,722)	Dunedin’s residential property values increased 2.2% over the past year. “For the second consecutive month we have seen positive annual growth in Dunedin’s residential property values. In terms of growth rate, Dunedin City is leading the other main centres.
Tauranga	$402,880 (£188,438)	Property values in Tauranga decreased by 1.8% over the past year. The residential property market in Tauranga is starting to show signs of stabilising after a turbulent twelve to eighteen months. Vacant land is starting to move again, although admittedly at fairly sharp prices. The low to middle price bracket is still where the bulk of the activity is in Tauranga, but there is more interest now in the higher brackets which we haven’t seen for quite some time.

* Assumed exchange rate is £1 = NZ$2.138
** 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.