Dunedin house listings low but values steady

Dunedin residential values rose by 1.7% in the year ended April. Photo supplied.
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 data.

''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.


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