Dunedin residential values rose by 1.7% in the year ended
April. Photo supplied.
Residential property values in Dunedin remained steady
and demand continued to be ''fairly strong'' for the majority
of properties on the market at present, QV Dunedin valuer
Duncan Jack said yesterday.
However, listings were low for this time of the year.
Buyers were cautious, perhaps with one eye on the rising
interest rates, and real estate agents were finding they
needed to work hard to achieve sales, he said.
Activity in the lower end of the market continued to be at
lower levels than before the Reserve Bank's loan-to-value
changes were brought in on October 1.
''Recent rises in the average sale price appear to be due to
the number of sales in the mid to upper price range, relative
to that of the numbers in the lower price range. Values are
not increasing significantly,'' Mr Jack said.
The full QV Residential Price Movement Index showed that,
nationwide, residential values for April increased 8.4% over
the past year and 0.2% over the past three months.
This means values are now 13% above the previous market peak
of late 2007. When adjusted for inflation, the nationwide
annual increase drops slightly to 6.8% and values remain
below the 2007 peak by 2.9%.
QV national spokeswoman Andrea Rush said New Zealand property
values took a downward turn last month and predictions were
they would level out. Instead, the figures showed values were
starting to increase again.
The nationwide index for April showed values accelerating at
a similar rate to last year. Auckland values had also risen
across all five main former territorial authority areas after
a few months of slowing earlier this year.
First-home buyer numbers increased in March New Zealand-wide
and across all regional markets, according to CoreLogic NZ
''This leads us to believe the LVR changes have resulted in
only small changes to the number of sales made to first-home
buyers and could indicate they are now finding alternative
ways to finance property,'' Ms Rush said.
In provincial New Zealand, the majority of values still
remained below the previous peak of 2007, with the exceptions
mainly being centres or districts closer to Auckland and
Christchurch, where the property markets had increased
significantly since that time.
In the North Island, New Plymouth District was one region
that had gone against the trend. Values there were up 1.1% in
the past three months, 5.7% year-on-year and 5.9% since the
previous peak of 2007.
In the South Island, Nelson City was also above the previous
peak of 2007, although the city had benefited from migration
from Christchurch since the earthquakes.
Values in Nelson were up 0.3% in the past three months, 3.1%
year-on-year and 5.3% since 2007.