NZ property values stabilise in January: QV

NZ property values stabilise in January: QV

By Jason Krupp

Feb. 8 (BusinessDesk) - Residential property values in New Zealand stabilised in January after nine months of decline, according to government valuer Quotable Value Ltd.

Average property values in January were 1.5% lower than the same month a year ago when property values were still climbing, although they were unchanged when compared to December's 0.9% decline. Values are now 5.8% below the market peak of late 2007.

"Despite overall New Zealand values stabilising in recent months, there is considerable variability between areas," said research director Jonno Ingerson. "Values across the combined main centres have been stabilising, while across combined provincial and rural areas values have continued to slide."

Of New Zealand's three main urban areas, Christchurch was the only centre to record any growth in January, with demand for housing undamaged by the Sept. 4 earthquake helping to lift prices 0.3% higher when compared to the same month last year.

In January, Auckland's values were stable, down 0.6% on 2010 levels, while in Wellington values have been rising since October after declining steadily in the six months prior, and are now 2.5% below last year.

The remaining centres all declined in January as economic uncertainty and lack of confidence sap demand, with values in Hamilton down 3.4% on the same month last year, Dunedin values down 3.7%, and Tauranga down 2.2%.

New Zealand’s property market has been struggling to haul itself out the slump it fell into last year as households focused on repaying debt amid historically low interest rates.

In December the median house price fell 2.2% to $352,000 compared to the same month in the previous year, according to sales data from the Real Estate Institute.

The record low volumes of property sales have kept new construction in a rut, with building consents falling to their lowest level of issuance since April 2009 in December.

"Sales activity slowed down over December and January as is usually the case," Ingerson said. "With the Christmas holidays over and people settling back into their routines, some will now be considering their plans for the year and beginning to act on them. However it is still too early to tell whether the property market in 2011 will be any different to 2010."

(BusinessDesk)

© Scoop Media