New Zealand: Small Gain for House Prices
Quotable Value has released May’s figures for the New Zealand’s housing market. The average sale price of a house in New Zealand has decreased slightly to $387,299 (£150,700) from April’s $388,465 (£151,154). Property values have increased 2.4% over the calander year. New Zealand’s average house prices are not directly comparable with the UK’s because, unlike the UK, the average home in New Zealand is a detached bungalow.
QV spokesperson Mark Dow said:
While most areas are still holding their value from a year ago, some areas are beginning to report small declines. Whether properties are holding their value or being sold beneath previous expectations is being influenced by how much pressure the owner feels to sell. There are increasing reports that where sellers aren’t under financial pressure or needing to relocate, they are choosing to take their properties off the market or rent them out rather than accept lower offer.
House Prices in New Zealand
Three Months Ending May 2008
| Location | Average House Price (NZ$) | Average House Price (£) | Comments |
| Auckland Region | $508,651 | £197,919 | Property values in the Auckland region grew by 1.8% over the past year down from 4.7% reported last month. Buyers remain cautious in all areas although valuers noted a little more activity in some areas in recent weeks. In the West, tidy homes and those that have been renovated seem to be selling, but dated homes in group housing areas are just sitting on the market. Agents continue to report that buyers are still taking plenty of time, and many vendors remain unrealistic in their price expectations. |
| Hamilton | $368,089 | £143,225 | Hamilton’s property values increased by 0.5% over the past year down from 2.3% reported last month. The significant decreases in annual property value growth that have been seen over the last couple of months continued for all parts of the city, with the Central City/ North West and Hamilton South West actually showing declining year on year values for the first time. |
| Wellington Region | $436,635 | £169,897 | Annual value increases are slowing significantly in all areas and the current growth is 3.4%. The property market has changed dramatically since this time last year with 30% less sales and these are taking 70% longer to sell. The latest QV statistics clearly show the market is slowing, but residential property values are still showing year on year growth. |
| Christchurch | $362,981 | £141,238 | The Property values in Christchurch increased by 1.9% over the past year, down from 4.6% reported last month. The annual growth rate continues to slow and it is likely that next month there will be no annual growth in Christchurch residential property values. The Eastern suburbs have seen the greatest decline in the growth rate, down to only half a percent.
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| Dunedin | $264,686 | £102,991 | Dunedin’s residential property values decreased 2.2% over the past year. Year on year property values have continued to decline and there is still no sign of this improving in the short term. There are less properties being advertised, suggesting either vendors are withdrawing properties from the market or that not all properties are being actively advertised. There is very little interest in properties over $600,000 and the lack of activity in the higher priced bracket has resulted in a significant reduction in the average sale price for Dunedin since last month. |
| Tauranga | $438,986 | £170,812 | Property values in Tauranga increased by 3.5% over the past year. The discounting of property asking prices is starting to become more prevalent. There is currently a genuine lack of interest in property in most locations and categories. While it is certainly not a sellers market; buyers still have to look at a number of homes before they find one that where the sellers price expectations are realistic. |
* Assumed exchange rate is £1 = NZ$2.57
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