Dunedin property values continue strong increase

Dunedin average quarterly house price growth up against all other main centres; pictured, the Dunedin suburb of Waverley catches the afternoon sun yesterday. Photo: Peter McIntosh
Dunedin average quarterly house price growth up against all other main centres; pictured, the Dunedin suburb of Waverley catches the afternoon sun yesterday. Photo: Peter McIntosh
For the third consecutive month, Dunedin led quarterly house price gains in main centres around the country, with an increase of 4.9%. Other southern regions are also putting in a strong showing.

Auckland's quarterly value was down by 1.2%, but Hamilton was up 1.4%, Tauranga 2.5%, Wellington 1.7% and Christchurch just 0.1%, according to Quotable Value's average value for April.

QV general manager David Nagel said national value growth had continued to slow, down to 0.4% for the quarter, but some of New Zealand's more affordable regions continued to see strong growth.

Regional growth value was led by Gisborne, Horowhenua and Rotorua, which experienced quarterly value growth of 8.7%, 8% and 7.6% respectively.

''Dunedin continues to lead all other main centres in quarterly value growth, up 4.9%,'' he said.

''Our local property consultants are reporting a good level of interest in properties up to the value of $500,000.

''It's this affordability that is attracting a broad range of buyers across most of its suburbs,'' Mr Nagel said.

Queenstown's value at $1.19 million, down 0.6% for the quarter, topped the Auckland region average of $1.03 million, but many Auckland suburbs were higher, some by more than $300,000.

QV Dunedin Senior Consultant, David Paterson, said Dunedin residential property values had increased 13% in the year to April and the average value in the city was up by $6331 to $457,530, compared with the previous month.

''There's good demand across most sectors of the market, with the lower-priced bracket under $500,000 making up the largest proportion of the sales,'' he said in a statement.

Mr Paterson said there was anecdotal evidence of interest from out-of-town buyers looking in the lower to mid-price range as an investment.

''It's too early to say whether the [coalition Government's] decision not to proceed with a capital gains tax has impacted on this part of the market,'' he said

The city's upper price bracket over $1 million was a small part of the market and only six residential dwelling and apartment sales exceeded $1 million for the calendar year to date.

That compared to 12 sales of more than $1 million for the same period last year, and 25 for all of 2018, Mr Paterson said.

He said both Dunedin South and the Taieri area both experienced strong growth, respectively up 15.4% and 13% annually.

''Growth in other parts of the city has eased back slightly on the previous month but is still very strong,'' Mr Paterson said.

Mr Nagel said while the national rate of value growth continued to slow year on year, the more affordable regions continued to attract plenty of buyer demand.

Comments

Good for investors.......not so good for first home buyers.

 

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