New Zealand property values improve

Country: New Zealand

6 July 2009

New Zealand property prices fell at a slower rate in the year to June, according to fresh data released by QV Valuations.

QV’s index shows that the average price of a property in New Zealand depreciated by 7.1% year-on-year in June, compared to an annual fall of 8.1% in May and 9.2% in April.

The average price of a home in New Zealand stood at £147,219 in June, up from £144,498 in May.

QV Valuations manager Glenda Whitehead said the sales volume was approaching more normal levels and the market was more stable.

QV’s data shows that residential prices appreciated in most of the main centres in Q2.
Property values in the Auckland region posted an annual decline of -5.9% in June, up from -7.6% in May. The average price of a home in the region increased from $483,397 (£187,844) to $489,444 (£190,218).

Whitehead commented: “We are seeing more activity in the medium price bracket in Auckland over $500,000 in suburbs such as Ellerslie and Mt Eden."

Values also improved in Hamilton to a 6.6% decline compared with -7.5% fall in May with the average sale price at $337,851 (£131,353).

Values in Tauranga improved to –8% compared with -9.4% last month.

Whangarei improved to -12.4% (-12.8%), Rotorua to -8.1% (-9.5%) and Gisborne to -13.4% (-14%). Queenstown lakes improved to –7% (-8.4%).

Wellington improved to a 6.5% fall (-7.4%), Christchurch to -7.3% (-8.1%) and Dunedin to -4.5% (-5.4%).

Editor’s comment

"Research shows that an increasing number of people believe that the worst of the New Zealand property market decline is now over and that it is currently a good time to buy property before prices start to rise again.

"The QV study further shows that the volume of people looking to buy properties in New Zealand is expected to rise in the next year, while fewer people intend to sell. This could potentially lead to a shortage of homes for sale and in turn drive property values upwards."

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