Queenstown homes' average current value is up 5.6% at
$653,950; pictured, the steam ship TSS Earnslaw, and
Remarkables mountains beyond Lake Wakatipu last week. Photo
by James Beech.
Otago and Queenstown property values lag just behind the
national average, but unsurprisingly, remain well down on
shortage-hit Auckland and building demand-driven Christchurch.
The exact effect of the Reserve Bank's loan to value ratio
(LVR) restrictions on bank lending largely remains anecdotal,
but it has prompted a downturn in house purchases in the
range below $400,000 to $500,000.
Data released yesterday from government agency Quotable Value
(QV) show that house values are mirroring the median prices
paid in most regions around the country.
Nationally, housing values in January, compared to a year
ago, were up 9.6%.
Queenstown and Otago were up respectively at 5.6% and 6.5%,
but Auckland and Christchurch sped ahead with gains around
14% or more.
QV's research director Jonno Ingerson said property value
growth had slowed during January.
The index showed nationwide values had increased 0.3%,
compared to December, while a month earlier the increase was
''So while values are still increasing, the rate of this
increase has slowed considerably,'' Mr Ingerson said in a
The wider Auckland region had an average current value of
Four Auckland areas had average current values at January
above $800,000, including the North Shore, North Shore
coastal and city. Auckland city east was at $1.02 million.
The Central Otago average current value was $313,368, up
6.6%, Queenstown Lakes $653,950, up 5.6% and wider Dunedin up
2.5% at $289,000.
Mr Ingerson said while January was the first month where
values appeared to have slowed, and he would wait longer
before claiming a trend, he said the timing did align with
the LVR speed limits, introduced last October.
''These [LVR] speed limits have reduced the number of
first-home buyers active in the market, but perhaps more
importantly, they have led to increased caution among
buyers,'' he said.
QV valuer Duncan Jack said Dunedin city's property market was
showing ''good levels of activity and reasonable demand''.
''We're seeing more activity at the upper-end of the market
of $500,000-plus which is a sector that hasn't been affected
by the LVR changes,'' he said in a statement yesterday.
Dunedin values were now 2.5% above those a year ago and there
had been a 1.6% increase during the past three months.
''There is less activity in the lower end of the market,
which could be the effect of the LVR caps kicking in,'' Mr