QV National Spokesperson Andrea Rush said, “Nationwide values are now rising at the fastest rate since 2004, up 5.6% over the past three months alone and the nationwide average value is now nearing $600,000.”
“Many housing markets around the country are continuing to be driven by strong investor demand, low interest rates, rapid price growth in the Auckland market and strong net migration.”
“In terms of the main centres, the Hamilton market saw the highest growth, up 29.0% over the past year, and Auckland, Wellington and Dunedin markets are also seeing rapid value growth of between 4.0% and 5.0% over the past three months.”
“The Christchurch market has also seen a lift in sales volumes but values continue to rise at a slower rate than the other main centres.”
“Regional areas within commuting distance of the main centres also continue to see strong upward pressure on values with Queenstown Lakes District seeing the greatest increase with values rising 10.7% over the past three months and 25.0% year on year.”
“The latest CoreLogic Buyer Classification data shows the share of sales in Auckland to investors is now at 46.0% of all sales, up from 37.0% in 2012.”
“The Reserve Banks is considering introducing further restrictions on property investors and it appears this may have led to a surge in investor purchases in various housing market around the country over the past month.”
“With the Proposed Auckland Unitary Plan (PAUP) implementation recommendations due this month, it’s hoped this will provide for much needed new housing supply and infrastructure for the growing Super City region to alleviate upward pressure on property values.”
Auckland
Home values continue to rise across all parts of the Super City region with the former Manukau City suburbs seeing the strongest growth, up 20.4% since June 2015 and 5.3% over the past three months. The average value there is now $842,142.
The former Auckland City Council suburbs have increased by 14.3% over the past year and 4.9% over the past three months. The average value there is now $1,146,639. Waitakere City values rose on average by 15.0% since June 2015 and 4.3% over the past three months. The average value there is $771,270. Values in the former North Shore City suburbs also increased by 15.0% on average year on year and were up 5.4% over the past three months. The average value there is now $1,135,868.
Papakura District values have increased by 22.6% in the year to June 2016 and were up by 2.2% over the past three months. Rodney District values rose by 16.9% over the past year and 2.9% in the past three months. Franklin values rose 17.9% over the past on year and 3.7% over the past three months.
QV homevalue Registered Valuer, James Wilson said, “Throughout June we’ve seen a continuation of the buoyant market conditions in the Auckland housing market.”
“There’s still a shortage of listings and well-presented properties are moving increasingly quickly, in some cases offers are made and accepted without the property reaching the wider market and we continue to see high levels of speculation in the market.”
“Investors appear to be heeding the recent warning by the Reserve Bank that further policy measures may be introduced later this year to curb investor activity in the housing market.”
“This appears to have led to a surge in investor activity with many seeking to acquire as many properties as possible under the current rules before any further restrictions are introduced.”
“This is particularly evident within the more affordable areas of West and South Auckland.”
“Based on past market behaviour, we anticipate this surge in activity to continue until such time as any announcement or strengthening of LVR’s is released by the Reserve Bank.”
“With the Proposed Auckland Unitary Plan (PAUP) implementation date drawing ever closer, land with greater development potential under the proposed plan is commanding an increasingly higher premium on the market.”
“The apartment market is also growing in popularity and experiencing strong value growth, in particular new builds or those purchased off plans.”
“We strongly recommend completing adequate due diligence before signing a contract to purchase an apartment off the plans, not only into the value level of the property, but also into the background of the developer, paying particular attention to the quality of their past developments, financial stability and scale of the company.”
“Apartments complexes already under construction, with anticipated completion dates of within six to eight months are the most sought after.”
Hamilton and Tauranga
Home values across Hamilton City continue to show exceptionally strong growth rising a total of 29.0% since June 2015 and 6.9% over the past three months. The average value in the city is now $492,403. Values in the surrounding districts also continue to rise rapidly with Waikato District values up by 26.4% year on year and 4.7% over the past three months; Hauraki values were up by 18.6% on the same time last year and 7.5% over the past three months while the Waipa District rose 21.3% since June 2015 and 6.1% over the past three months.
QV homevalue Hamilton Valuer, Stephen Hare said, “The Hamilton market is still seeing strong demand with values being driven up as the supply of properties on the market is not able to keep up with demand.
“We are continuing to see high levels of activity and demand at the lower value end of the market in the price bracket of $400,000 to $600,000 from first home buyers and investors.”
“The higher value price bracket is now also seeing a surge in demand with more homes now selling in the $700,000 to $950,000 price bracket and we with the recent rapid value rises in the market we are now seeing more properties selling over the one million dollar mark.”
“The higher value sales are commonly seen throughout the suburbs of Flagstaff, Rototuna and Huntington, along the river and around the Lake.
“A growing trend is that we have been seeing first home buyers priced out of the Hamilton market buying in townships within commuting distance of the city as they search for homes they can afford to buy. These first home buyers are now also competing with investors looking for better yields. It’s likely this surge in activity will slow as prices in these towns catch up with Hamilton lower priced suburbs.”
“Waipa District towns within commuting distance to Hamilton continue to see strong buyer demand such as the district’s main centre, Cambridge, which is a 30 minute drive from the Hamilton CBD.
“There’s a growing trend of Aucklanders relocating to live Cambridge due to the more affordable housing it offers and local sources now say as many of 30.0% of all sales in the $600,000 plus range are being sold to this group.”
“Entry level properties in Cambridge currently sell for between $400,000 and $600,000 and the price to gain entry into the housing market in this quaint English-style country town is now rising rapidly.”
Home values in Tauranga City continue to rise rapidly up 23.65 year on year and 4.9% over the past three months. The average value in the city is now just shy of $600,000 at $599,915. Western Bay of Plenty home values also continue to rise rapidly, up by 20.9% since June last year and 5.8% over the past three months. The average value in the district is now $526,756.
