National house values have eased
during the past three months, as the heat comes off Auckland
and Christchurch properties and aligns with the lesser
quarterly gains seen in regional areas.
While Auckland and Christchurch's gains on a year ago are
respectively 13.1% and 7.6%, their quarterly movements of
2.6% and -0.2% reflect the ongoing theme of the regional
Nationally, the value gain on a year ago is 8.2%, while the
quarterly gain plunged to 0.7%.
The Reserve Bank's loan to value ratio (LVR) lending
restrictions continue to have an effect in many regions, with
activity significantly slower at the entry level end of the
market, including Dunedin sales in the under-$250,000
Quotable Value (QV) national spokesperson Andrea Rush said
nationwide values had increased for the second month in a
row, following a slight decline in March, but ''the picture
is quite mixed'' for the quarter to May.
The growth in house values has slowed over the past
quarter, with the national gain being only 0.7%. Photo by
''Whilst values in all the main centres have increased to
varying levels, some areas within the cities are showing
decreases and values in many of the smaller regions are flat or
decreasing,'' she said.
Dunedin-based QV valuer Duncan Jack said values around the
city had been ''fairly static'' in recent months and listings
were at ''reasonably low levels'' which might reflect a
traditionally slow period going into winter.
''Although buyers are still active they are very cautious
with their purchasing decisions,'' Mr Jack said.
In Queenstown Lakes, property values had increased 1.1%
during the quarter and 5.6% on a year ago, the average value
in the district being $668,791. Central Otago was down 0.1%
for the quarter and up 5.3% for the year, at $314,022.
Ms Rush said the values of lifestyle properties around the
Wakatipu basin had been ''variable'', while the ''hotspots''
of Frankton and Arrowtown had seen values there rising faster
than other areas.
Mr Jack said in Dunedin the strongest demand was for
well-presented properties in the mid-higher ranges, being
properties over $300,000.
Dunedin's peninsula and coastal areas were the market
leaders, with values up 3% during the past quarter and 4.3%
on a year ago.
''Activity in the entry level end of the market under
$250,000 remains subdued due to the LVR restrictions as many
first home buyers don't have the deposit to purchase now,''
Mr Jack said.