9 Feb 2018

Housing prices set for steady increases - QV

8:22 am on 9 February 2018

The housing market has made a strong start to the year and is likely to gradually improve over the next 12 months, figures show.

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Photo: Composite

The latest data from QV showed house price growth remained steady at 6.4 percent in the year ended January, with a national average price of $671,500.

A price recovery at the end of last year was sustained, and prices in Auckland grew at their strongest rate in more than a year.

Values rose nationally by 3.8 percent over November, December and January.

QV general manager David Nagel said the easing of bank lending rules, along with greater confidence about government policies, helped underpin sentiment.

Prices were still strong in Hawke's Bay, Wellington, and the top of the South Island, but slowed in Waikato and the Bay of Plenty.

Mr Nagel said a shortage of houses and strong demand continued to support the market.

"January has seen values continue to rise in many places around New Zealand but values have dropped in others and in general activity has been slower in many places over the holiday season.

"Values in Auckland are now rising ... the Wellington market continues to rise, however value growth has slowed in the Hutt Valley."

Christchurch's housing market remained flat, while Dunedin continued its steady value growth, a trend in the southern city during last year.

February and March were traditionally busier months for the housing market and moderate growth was expected this season, he said.

By the numbers

  • Auckland: Regional values up 0.7% in the year, 1.6% in the quarter, to an average of $1,054,974. Eastern suburbs rose 2.7% in the quarter to $1,576,640. Auckland city islands up 12.6% in the year. Papakura up 2.3% in the quarter.
  • Hamilton: Rises slowed, rising 2.6% in the year, 0.3% in the quarter, to $544,935.
  • Tauranga: Up 3.9% in the year to $698,875.
  • Western Bay of Plenty: Down 1.7% in the quarter, but up 7.3% in the year to $617,120.
  • Hastings: Values rose 15.7% in the year, 3.9% in the past three months, to an average of $453,616. Values are now 45.5% higher than in 2007.
  • Napier: Up 15.4% in the year, 3.5% in the quarter, to $483,759.
  • Wellington: Up 9% in the year, 4% in the quarter, to $634,811. Central and southern suburbs up 5.5% in three months. Porirua and the Kāpiti Coast up 13.4% and 12.9% in the year. Upper and Lower Hutt rises slowed from 8.5% and 8.4% in the year to 1.1% and 0.6%.
  • Nelson: Up 9.9% in the year, 1.3% in the quarter to $558,587. Tasman District rose 12.6% in the year, 2.6% the quarter, to $560,907.
  • Christchurch: Down 0.6% in the year, but up 0.8% in the quarter, to $494,459. Waimakariri rose 0.7% in the year while Selwyn fell 0.1%.
  • Dunedin: Up 9.3% in the year, 2.6% in the quarter to $392,512
  • North of Auckland: Whangarei up 10% in the year, Kaipara up 9.2%.
  • Mackenzie up 27.1% in the year, 10.3% in the quarter.
  • Queenstown: Lakes region rises slowed to 2.2% in the quarter.

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