NZ Property Values up 14 per cent in 2015

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Thursday, January 14th, 2016
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New Zealand property values rose 14 per cent in 2015, with the annual pace slowing from a peak in November, as regulatory curbs imposed by the government and central bank took the steam out of the Auckland market, according to state-owned valuer Quotable Value.

The average value of a New Zealand home rose to $NZ558,146 ($A522,510) in December from $NZ488,674 a year earlier, accelerating from the 4.9 per cent increase in 2014, QV said.

Values rose 2.9 per cent in the three months through December, slowing from the 4 per cent pace in the three months through November.

Property values have been underpinned by a hot Auckland market in recent years, where rapid inbound migration and a supply shortage has pushed up prices.

“With various government and Reserve Bank restrictions now beginning to take effect, and foreign buyers apparently much less active, our expectations are that Auckland values will drop a few per cent over the next few months,” CoreLogic research director Jonno Ingerson said in a statement.

“While Auckland may take a breather, the surrounding areas are likely to rise, driven both by local demand and by Aucklanders choosing to live in affordable locations.”

Massey University research on Tuesday showed New Zealand housing affordability improved in the final three months of 2015, helped in part by stalling Auckland prices, though low interest rates were seen as potentially bidding up prices.

The QV data show Auckland region values rose 4.1 per cent in the three months ended December 31, for an annual gain of 22.5 per cent. At an average value of $933,264, Auckland values are almost 71 per cent above the previous 2007 peak.

Values in Hamilton rose 20 per cent in 2015, while Tauranga was up 18 per cent.

Wellington region values rose 5.1 per cent in 2015, Christchurch city values increased 2.6 per cent, and Dunedin values were up 5.7 per cent in the year.

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