National residential property values continue to rise and are
up 7.6% on a year ago - a result mirrored in Central Otago
and Queenstown, but not in Dunedin.
Rising interest rates, banking restrictions on lending and
the traditional winter downturn all appear to be playing a
negative role in residential sector data.
Quotable Value data for July said national property values
were up 7.6% on a year ago, which is 15.6% above the last
market peak in 2007, but the gain was also the slowest annual
increase during the past 13 months.
Sales volumes were 15% and 25% lower than the same periods in
2012 and 2013, in the majority of regions around the country.
In Queenstown, sales volumes were declining overall but value
levels were appreciating, QV national spokeswoman Andrea Rush
The Reserve Bank loan to value ratio (LVR) restrictions on
the banking sector and its having raised the interest-driving
official cash rate, had caused a slowing in activity levels
and there was reduced pressure from purchasers, Ms Rush said.
''However, land sales are continuing strongly, especially at
the low-value end, as first-home buyers take advantage of the
lower LVR limits imposed on new-build homes,'' she said. New
homes are exempt from the LVR criteria.
Against the national average residential value rise of 7.6%
of $479,193 for July , Queenstown Lakes was up 6% at
$676,230, Central Otago up 7% at $321,721 and Dunedin up 2.2%
Ms Rush said the Central Otago district had seen ''fairly
robust'' sales activity amid ''gradually improving'' market
conditions, similar to Queenstown Lakes.
Dunedin-based QV registered valuer Duncan Jack said the
highest demand for Dunedin homes was in the low to mid range
''The market conditions of recent months prevail in Dunedin,
with slowly increasing values and overall listing numbers at
low to moderate levels across the city,'' Mr Jack said.
Winter was traditionally the least popular time to sell and
more listings were expected going into spring, he said.
''Many buyers are still cautious and appear happy to wait for
the `right' property,'' he said.