New Zealand: Property Market Softens
Quotable Value has released March’s figures for New Zealand’s housing market. The average sale price of a house in New Zealand has decreased to $388,894 (£155,558) from January’s $393,240 (£157,296). Property values have increased 6.5% over the calander year. New Zealand’s average house prices are not directly comparable with the UK’s because, unlike the UK, the average home in New Zealand is a detached bungalow.
QV spokesperson Blue Hancock said:
“The market is continuing to soften, with more listings and fewer buyers leading to reduced demand. While some properties or localities are selling below previous expectations, other areas continue to hold up well”. Market sentiment continues to be negative and as we head into the winter months this is likely to continue.”
House Prices in New Zealand
Three Months Ending March 2008
| Location | Average House Price (NZ$) | Average House Price (£) | Comments |
| Auckland Region | $516,253 | £206,501 | Property values in the Auckland region grew by 7.1% over the past year down from 8.1% reported last month. All seven cities and districts making up the Auckland region showed an easing in the year-on-year growth rates from March 2007 to March 2008. Year-on-year growth rates now range from 5.1% recorded for Papakura to the regional high of 9.8% in Rodney. |
| Hamilton | $359,668 | £143,867 | Hamilton’s property values increased by 3.4% over the past year down from 6.1% reported last month. The Central City/North West area of Hamilton decreased to 2.7% from 4.5%, the South West to 3.4% from 5.5%, Hamilton North East to 3.3% from 6.6%, and South East Hamilton to 3.2% from 5.8%. |
| Wellington Region | $440,483 | £176,193 | All the areas within Wellington have shown easing annual growth rates and average sale prices. Across the region, Upper Hutt showed the greatest change in annual growth rates, dropping to 10.1% from 13.4%. Porirua also eased to 10.2% with average sale prices similar last month at $402,653 ($161,061). Kapiti eased to 10% and Hutt to 8.3%. Within Wellington City, the Eastern Suburbs showed the greatest easing in annual growth rates, dropping to 5.5% from 8.0% reported last month. North Wellington eased to 7.9%, while both the Western suburbs and Wellington City and Southern Suburbs both eased to 7.7% |
| Christchurch | $365,665 | £146,266 | The Property values in Christchurch increased by 5.8% over the past year, down from 6.1% reported last month. The volume of sales is well down on previous levels and we are now seeing clear signs that some property types are achieving lower sale prices than they would have six months ago. The difficulty the property market is experiencing is well reported and it would appear that this negativity is adding to purchasers’ reluctance to commit to buying a property. |
| Dunedin | $276,186 | £110,474 | Dunedin’s residential property values increased by 2.2% over the past year. This month’s value growth statistics are also showing some negative growth in parts of the city for the first time. The growth in the southern city area for example was -1.4%. This is an indication of what we may see over the city as a whole in the months ahead. |
| Tauranga | $423,407 | £169,362 | Property values in Tauranga increased by 3.7% over the past year. Property stocks are building up quite rapidly as more properties are listed but few are selling. The build up should inevitably lead to a softening in prices, particularly for those sellers who have to move on. |
* Assumed exchange rate is £1 = NZ$2.50
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