‘Property market performing well’ – survey
The latest data shows the property market is continuing to perform strongly, with all of the major cities showing value growth.
The QV House Price Index data for February shows the 16 cities monitored experienced quarterly value growth.
This is the third consecutive month this has occurred, indicating strength right across the country, QV says.
Modest value growth has been seen in Tauranga with values increasing by 1 per cent over the last quarter and 5.9 per cent over the last 12 months.
The average house value is now $768,178.
For North Island provincial centres, Kawerau has the quarterly growth, up 19.1 per cent, followed by Opotiki 8.9 per cent and Rangitikei 8.7 per cent.
The average value nationally has increased 5.3 per cent year on year and is now $722,475. This represents an increase of 2.6 per cent over the past three months, slightly up from last month, the survey says.
“Sales activity has picked up significantly in Auckland as well as around most parts of the country as more buyers are committing to property decisions in an already congested market. As a consequence we’re seeing more buyers from across the property spectrum competing for limited stock which is forcing prices to rise,” QV General Manager David Nagel says.
“This a pattern likely to continue as we enter autumn, where typically the summer rush of property listings drops off and an already tight market gets even more tightly held. This will only deepen the imbalance between demand and supply.”
“Apprehension around COVID 19 and the impacts this might have on the economy are unlikely to be felt in the property market in the short term, but could have impacts in the months ahead. Locations dependent on tourism are likely to be first to feel the pinch."=
"If we see a reduction in the OCR by the Reserve Bank in response to the COVID 19 outbreak, then this could actually stimulate the property market further in the short term, depending on the extent of interest rate reductions that are passed onto borrowers."=
“Of the main centres, the Wellington region has usurped Dunedin this month with quarterly value growth of 5.4 per cent, but Dunedin remains with quarterly growth of 4.9 per cent. Dunedin has recorded annual value growth of 18.1 per cent which is still well ahead of the other main centres with the Wellington region a distant second at 10.8 per cent annual growth.
“The resurgence observed in Christchurch last month continues with 1.5 per cent value growth in the past three months and 3.5 per cent year on year growth. Hamilton is also showing renewed strength with quarterly value growth of 4.3 per cent reflected in year-on-year growth of 7.3 per cent.”
Of the smaller cities, Whanganui and Gisborne remain the top North Island performers recording annual value growth of 29.1 per cent and 24.9 per cent respectively. Invercargill leads the way in the South Island with annual growth of 19.3 per cent.