NZ property values climb 5.7% in 2012, Auckland values set to keep gaining
Jan. 10 (BusinessDesk) - New Zealand property values rose 5.7 percent last year, driven by gains in Auckland and a
recovery in Christchurch, and the housing market in the country's biggest city is set to keep climbing, according to
Quotable Value.
Property values were 1.5 percent in the three months ended Dec. 31 from the same period a year earlier, rounding out the
annual gain to 5.7 percent, state-owned QV said today. That's 2 percent above the previous market peak in late 2007.
The increase in national values was predominantly driven by Auckland and to a lesser extent Christchurch," research
director Jonno Ingerson said. "These were also the only two areas to have consistently increased while the rest of the
country varied throughout the year."
New Zealand's property market regained some vigour in 2012 after several years of being in the dumps, with an increasing
Auckland population swelling demand against the backdrop of a limited supply. The lack of supply has become a concern
for politicians, who are looking at ways to stoke new building.
QV's Ingerson said the lack of properties on the market was "one of the defining features of 2012" with buyers
struggling to find suitable properties.
Those supply issues will likely push up Auckland property values further this year with the city expected to see more
migrants arriving than people leaving.
Auckland property values are 11.1 percent above the last peak, and what used to be Auckland City now exceeds the 2007
values, even when adjusted for inflation.
Wellington property values are expected to stay flat this year having suffered in recent years from restructuring and
job losses in the public sector, while Christchurch property values are predicted to keep growing as demand outstrips
supply.
Property values in the country's provincial centres increased at a slower pace than the national average and are
expected to stay flat this year.
(BusinessDesk)