Dunedin again leads main centres in rising house value

Kaikorai Valley is the focus of this aerial photograph of Dunedin. Photo by Stephen Jaquiery.
Dunedin continues to see the strongest value growth out of all the main centres, while steady growth continues in Wellington and values drop slightly in Auckland. Photo by Stephen Jaquiery.

For the second consecutive month Dunedin has topped the list of house value gains of main centres across the country - with an annual gain of 13.3%, five times the national 2.6% gain.

Queenstown values again remain above wider Auckland's average values at $1.2million, with a 7.1% annual gain while values in Dunedin South were up 15.1%, at $432,127 and Invercargill up 11%, at $290,571.

Quotable Value general manager David Nagel said while Dunedin's average value of $451,199 was well below the national average of $686,523, the city had seen solid growth for yet another month.

''Dunedin continues to see the strongest value growth out of all the main centres, while steady growth continues in Wellington and values drop slightly in Auckland,'' he said in a statement.

The Clutha district was one of several areas around Otago with strong annual house value growth; up 8.1%, which eclipsed the national average of 2.6%. Photo: John Cosgrove
The Clutha district was one of several areas around Otago with strong annual house value growth; up 8.1%, which eclipsed the national average of 2.6%. Photo: John Cosgrove

Affordability constraints had ''put the brakes on'' national value growth, particularly in high-value regions, such as Auckland city's $1.23million values, Mr Nagel said.

The national annual growth rate dropped from 7.3% in March last year to 2.6%.

However, he noted the Reserve Bank's indication of a likely cut to the interest-driving official cash rate (OCR) last week could increase demand for residential property across the country.

''We'll be closely watching to see how this develops,'' he said.

Economists yesterday ramped up the likelihood of possibly two OCR cuts this year.

A QV spokesman said Dunedin residential property values continued to rise and increased 13.3% in the year to March and by 3.7% during the past three months, while the Dunedin-Taieri area experienced also strong value growth, up 12.5% annually and 4.0% over the past quarter.

In the South Island, Southland led the way in quarterly growth, up 9.2%, followed by Clutha, up 7.4% (and up 8.1% annual) and Westland values rose by 6.5%.

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