New Zealand: October Property Values Rise 12.7%

Quotable Value has released October’s figures for New Zealand’s housing market. The average price of a house in New Zealand has risen to $406,176 (£147,700) from August’s $404,089 (£146,941). 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:

“Purchasers are being careful and taking a longer time to buy property. Developers and investors are also acting cautiously and seem willing to wait for further market signs to appear. Activity is patchy across a number of regions including the main urban centres.”

House Prices in New Zealand
Three Months Ending October 2007

Location Average House Price (NZ$) Average House Price (£) Comments
Auckland Region $524,180 £190,610 Property values in the Auckland region grew by 12.8% over the past year down from 13.3% reported last month. Like the weather, activity in the Auckland property market has been patchy and dull. The statistics reflect the activity and results of recent months, with a general easing in property value growth rates across Auckland.
Hamilton $368,194 £133,888 Hamilton’s property values increased by 15.8% over the past year up from 14.4% reported last month. There is continued growth in North East Hamilton, which grew from 15.9% in September to 16.6% in October. There also appears to be large one-off increases in the Central City and North West areas of Hamilton, which increased from 11.1 % in September to 15.4% in October, and South West Hamilton which went from 10.4% last month to 15.4% this month.
Wellington Region $438,263 £159,368 Property values in the Wellington region increased by 15.9% over the past year. The highest average sales price was recorded in the Western Suburbs at $575,688 (last month $564,537) an area that has not seen the same decline in activity as other parts of Wellington.
Christchurch $365,152 £132,782 The Property values in Christchurch increased by 12.3% over the past year, down from 13.1% reported last month. The annual price movements continue to ease back, while the average sales price remains fairly static. There is now good evidence of a softening market with lower sale volumes, lengthening sale periods, and pricing pressures evident.
Dunedin $272,460 £99,076 Dunedin’s residential property values increased by 9.4% over the past year. There has been a significant increase in listings, which would indicate that the supply/demand equilibrium has changed more to the buyers favour. A continuation of this trend will see a continued easing in QV’s value growth index.
Tauranga $450,122 £163,680 Property values in Tauranga increased by 7.7% over the past year. The Tauranga property market continues to be somewhat flat with relatively minor increases in property values over the past 6 months

* Assumed exchange rate is £1 = NZ$2.75

12 November, 2007

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