New Zealand: Property Values up 10%
Quotable Value has released December’s figures for New Zealand’s housing market. The average sale price of a house in New Zealand has decreased to $388,253 (£154,068) from November’s $393,198 (£156,030). Property values have increased 10% over the calander year. New Zealand’s average house prices are not directly comparable with the UK’s because, unlike the UK, the average home in New Zealand is a detached bungalow.
QV spokesperson Blue Hancock said:
“Looking back across 2007, the growth in property values started the year at 8.8% per annum in January, rising steadily to a high of 13.3% in August. The cost of borrowing and slowing immigration has softened demand since, with our figures showing a drop in each of the last four months to end the year at an increase in property values of 10.0%. There is nothing in our statistics to suggest that this trend will not continue into 2008, with the Spring market having failed to provide the usual resurgence.”
House Prices in New Zealand
Three Months Ending November 2007
| Location | Average House Price (NZ$) | Average House Price (£) | Comments |
| Auckland Region | $511,188 | £202,852 | Property values in the Auckland region grew by 10.8% over the past year down from 11.8% reported last month. There were steady levels of activity comparable to previous months. Buyers continued to be cautious, with most doing plenty of homework before making an offer. Some areas in West Auckland were ticking over fairly steadily while others had definitely slowed down. Popular suburbs included New Lynn, Te Atatu Peninsular, Te Atatu South, and West Harbour. Slower areas were Ranui, Glen Eden, and Massey. Other parts of Auckland also showed patchy activity. |
| Hamilton | $364,013 | £144,450 | Hamilton’s property values increased by 11.8% over the past year down from 14.5% reported last month. The Central City/North West area of Hamilton decreased from 13.5% in November to 10.5% in December. The South West decreased from 12.9% to 10.9%, Hamilton North East decreased from 15.3% to 12.8% and South West Hamilton decreased from 12.9% to 10.9%. |
| Wellington Region | $438,416 | £173,975 | Property values in the Wellington region increased by 12.1% over the past year. The outlying areas of Wellington recorded the biggest declines in property growth this month. Lower Hutt reported the greatest easing at 12.1% (16.1% last month), followed by the Kapiti Coast, decreasing to 12.1% this month (from 15.3% last month). Porirua’s growth in property values dropped 2.4% to 13.4% (15.8% last month) and Upper Hutt also eased to 15.3% (from 17.5% last month. The Eastern suburbs climbed from 11.3% to 11.8%, the only area in Wellington City to report an increase in property value growth this month. The Western suburbs recorded a slight easing in growth rates from 14.7% to 14.3%, and the Southern suburbs decreased from 11.7% to 11.4%. Growth in property values in the Northern suburbs remained relatively static at 10.9% |
| Christchurch | $361,912 | £143,615 | The Property values in Christchurch increased by 8.2% over the past year, down from 9.9% reported last month. Sale periods are continuing to increase with well presented, lower to medium priced properties being the quickest to sell. Vendors of overpriced property no longer have the advantage of a fast growing market to catch up to their asking price. Those that have not reacted to the slow down risk their properties sitting and then being discounted heavily to compensate for staying on the market too long. |
| Dunedin | $275,540 | £109,41 | Dunedin’s residential property values increased by 6.9% over the past year. |
| Tauranga | $443,399 | £175,971 | Property values in Tauranga increased by 5.0% over the past year. Anecdotal evidence indicates that despite a reasonable level of buyer enquiry, there are difficulties in closing the sale due to unrealistic expectations by vendors. Prospective purchasers are more cautious partly due to the increased cost of borrowing. Homeowners refinancing will face tougher times ahead due to the recent hikes in fixed interest rates. Properties with less desirable features such as appearance and location tend to be more difficult to sell in current market conditions. |
* Assumed exchange rate is £1 = NZ$2.52
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