New Zealand Property Rises 11.1%

June 11th, 2007 • Related • Filed Under

City Life

Quotable Value has released May’s figures for New Zealand’s housing market. The average price of a house in New Zealand has risen to £142,579 (NZ$372,552). April’s figure was £136,579 (NZ$366,032). 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:

“Despite some expectations that property prices may level off, the market has continued to strengthen. Sale prices in the main urban areas keep rising, driven by significant activity in the lower value localities. Although immigration appears to be slowing, high levels of employment continue to contribute to sale price increases.”

House Prices in New Zealand
Three Months Ending May 2007

Location Average House Price (NZ$) Average House Price (£) Comments
Auckland Region $484,739 £185,015 Property values in the Auckland region increased by 9.5% over the past year, up from 8.2% last month. Sale prices of quality properties within the premier suburbs of Central Takapuna, Milford and Devonport exceeded expectations, especially for properties that were auctioned. Within the mid-range suburbs, the market was relatively stable. Investor style properties are sitting on the market longer, possibly due to the low returns these now offer.
Hamilton $341,456 £130,326 Hamilton’s property values grew by 11.8% over the past year. Demand for homes across Hamilton continued to push up property values. Increases in all areas of the city were very similar, ranging from 10.3% in the South East to 11.8% in the South West.
Wellington Region $423,940 £161,809 Property values in the Wellington region grew by 15.1% over the past year. Hutt City led the market with values increasing at 18.4%, up from 17.7% in April. Wellington City and the Southern Suburbs had the highest increase of $77,658 in the average sale price over the past year.
Christchurch $349,932 £133,562 Property values in Christchurch City increased by 12.4% over the past year, up from 11.8% last month. May is the fifth consecutive month that the growth in property values has been higher than the previous month. The eastern suburbs within Christchurch have experienced the greatest annual growth at 14.1%. Lower priced properties are currently driving a lot of the activity. Well priced properties and quality homes are still in demand and selling well.
Dunedin $265,097 £101,182 Dunedin continued to see positive increases in property values with most areas showing slightly higher growth rates compared to last month. The southern part of the city recorded the highest growth at 10.3%.
Tauranga $417,124 £159,207 Property values in Tauranga increased by 6.7% over the past year, up from 5% last month. Demand in the mid to lower sectors of the market has dropped off with a noticeable reduction in sales.

* Assumed exchange rate is £1 = NZ$2.62

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