Report shows price changes in different regions
The New Zealand property market is on fire as the average residential property value exceeded $1 million for the first time despite the recent COVID-19 lockdowns, according to the latest Quotable Value (QV) data.
The report found that the average home value increased by 5.3% nationally over the past three months to the end of October, up from the 3.6% quarterly growth in September, with the national average value now sitting at $1,002,153.
The latest national average house value represents a 27% year-on-year increase, up a fraction from the figure of 26.3% reported last month.
In the Auckland region, the average home value now sits at $1,427,896, a 5.6% increase over the last three months, with annual growth of 24.8% − up slightly from September’s 23.9% year-on-year growth.
The ManawatÅ-Whanganui region remained the strongest growing region with 34.7% growth over the past year, followed by the Canterbury region at 34.1%. Meanwhile, Hawke’s Bay and the greater West Coast regions experienced annual growth of 33.9% and 32.7%, respectively.
By contrast, the three lowest annual growth rates are in the South Island, with the Southland region experiencing a still-significant 20.4% increase, the Tasman region a 22.1% increase, and Otago a 24.4% increase.
For the main cities, QV found the strongest value gains over the past three months in Christchurch at 10%, up from 7.7% value growth last month, followed by Queenstown Lakes District at 9.6%, building further on the solid quarterly growth rate of 9.4% reported last month.
None of the 16 major urban areas QV monitors saw a decline in average value, with all but Palmerston North and Napier at 3.7% and 5.1%, respectively, showing an increase in quarterly growth rate since last month.
Read more: Westpac sees slowdown of home price growth over coming months
QV general manager David Nagel said the latest figures showed that some New Zealanders are still keen to climb the property ladder despite the ongoing uncertainty caused by COVID-19.
“Credit availability continues to tighten as banks respond to RBNZ concerns around property market stability, particularly with interest rates on the rise. But a continued lack of supply has resulted in a resurgence in prices across all 16 metro locations we monitor,” Nagel said.
“A reported flood of new listings will provide some welcome relief for house hunters. With interest rates rising faster than most initially expected, there appears to be an element of panic buying from those who have been in the market for a property for some time, keen to lock in a mortgage rate that’s still at historically low levels.”
Focusing on the residential property market’s future, Westpac economists stated in their latest economic commentary that they expect a substantial slowing in house price growth over the coming months as mortgage rates rise, turning to modest price declines by the second half of 2022.
