Auckland Property Prices above 2007 Market Peak

By | December 9, 2011

09 December 2011

Auckland’s property values are now above the 2007 peak, with growing numbers of property investors being attracted back into the market. QV’s residential property index for November stated that two well known property investment groups are back in the Auckland property market.

Glenda Whitehead from QV Valuations said “Investors are starting to come back to the market”. Regarding what action these investors plan to take, Whitehead said they are “looking to buy, upgrade and on-sell at a healthy profit”. The other majority “require a definite positive cash flow return”.

The current Auckland property market sits at 0.6% above the 2007 market peak which can be attributed to increased activity from first time home buyers, and property investors.

Old Auckland City has seen the greatest increase in value, which is up 4.7% this year (2.5% above the 2007 peak).

Jonno Ingerson, research director at QV emphasised that values have been increasing not only in Auckland but on a nationwide scale, “values have now begun to increase across the rest of the main centre’s, as well as in many of the provincial and rural towns. New Zealand’s capital city, Wellington has also shown growth and continues to show signs of positivity.

There are positive signs in both Hamilton and Tauranga in recent months, although still sitting below the 2007 market peak, the Christmas and the New Year surge should help build stability for these cities.

The demand for ‘undamaged houses’ in Christchurch has strengthened the property market, pushing values up 3.6% from last year, and only 1.7 below the 2007 market peak. Christchurch’s surrounding districts Waimakariri and Selwyn are well above the previous market peak, and have increased 6.9% and 5.3% in values respectively.

Ingerson also mentioned the encouraging activity due to happen over the month of December in the build up to Christmas. He also pointed out “the strength of this activity will depend to some extent on how economic events pan out in Europe”.

Nelson and Dunedin have also seen growth in the last three months, with Dunedin increasing 2.4% and Nelson 3.2%.