10 July 2012
Property investors have something to cheer about as New Zealand property continues to rise in value according to the latest Quotable Values (QV) index. Values are up 4.2% over the past year, as well as increasing 1.8% in the past three months from the June period. Values are now 1.3% below the 2007 peak.
According to qv.co.nz research director Jonno Ingerson, the Auckland and Christchurch areas have shown the most rapid increases, with all of the main centres having increased in value over the past year.
Wider Auckland values continue to grow with the area increasing 5.9% in the last year, including a rapid 2.6% increase over the past three months. These values are now 4.8% higher than the market peak in 2007.
Huge buyer demand in some suburbs and a shortage of listings are likely to lead to further increases, particularly in the leafy inner suburbs. The fastest increase in values has been in the old Auckland city which is up 6.8% over the past year and 7.6% higher than the market peak.
However, increased levels could also spread further according to QV valuer Glenda Whitehead.
“The leafy inner city suburbs continue to show the strongest value lifts, but this upward pressure has also now filtered out widely in all directions, as buyers are forced to look wider to meet their needs within their affordability range”.
The same issue of supply shortage has seen a large increase in the Christchurch area with values sitting 1.5% above the 2007 market peak, having risen 5.8% over the past year and 1.3% over the past three months.
Other major areas such Wellington, Hamilton, Queenstown and Dunedin all saw rises over the past year to a lesser extent.