NZ property values rise at fastest pace in more than a year in June on Auckland demand
By Tina Morrison
July 2 (BusinessDesk) - New Zealand property values rose at the fastest pace in more than a year in June, as a shortage
of homes in Auckland prompted house-hunters to cast their net wider to surrounding areas.
National property values accelerated 9.3 percent in the 12 months through June to $520,585, matching the pace in
February last year. Values in the Auckland region surged 17 percent to $840,165, the fastest pace since 2004, according
to state-owned agency Quotable Value.
House values in Auckland city jumped 18 percent in the year through June, the fastest pace in more than a decade and
pushing the average value over $1 million for the first time, as housing supply fails to keep up with demand from record
migration. That's prompting house hunters to spread their net wider, pushing up values in surrounding areas, the agency
said.
"Large numbers of Aucklanders are flocking to buy property in Tauranga, Hamilton and the Western Bay of Plenty,
resulting in rising values in these areas," QV national spokeswoman Andrea Rush said. "There are reports that of those
present at open homes in Tauranga, as many as 60 percent are regularly from Auckland, while around 15 percent of all
buyers in the Hamilton market are now from Auckland."
Values in other main centres rose at a slower, steady rate, she said.
Property values in Wellington increased at an annual pace of 2 percent to $546,577, while Christchurch gained 3.2
percent to $474,269 and Dunedin advanced 2.6 percent to $269,048.
Sales volumes were ahead of the same period last year, with high migration and forecasts for lower interest rates
increasing levels of activity in the housing market in many parts of the country, Rush said. Some buyers may be bringing
forward purchases ahead of the stricter lending and tax changes coming into effect in October, she said.
Values in provincial areas were mixed during the period, whit some increasing, others flat and some showing a decline,
she said.
(BusinessDesk)