Property prices slump in Dunedin

The growth in residential property values is slowing nationally, with Dunedin the only main centre where values fell - by 2.2%, QV Valuations statistics show.

The average sale price in Dunedin decreased from $272,361 in April to $264,686 last month.

The property value figures are generated through the QV residential property value growth index, which monitors the difference between the sale price and the rateable value of the respective properties.

The index also takes account of the various property price categories and relative sales volumes in those categories.

Latest statistics showed the national average growth of 2.4%, based on the three months to the end of May, was down on the 4.9% growth reported in April.

Invercargill led the country, with a 15.3% increase in latest annual property values.

David Paterson, of QV Valuations, said Dunedin's 2.2% decline in residential property values was lower than an earlier 0.1% decline recorded in April.

The rate of decline was reasonably consistent across the city, with only the Otago Peninsula /Coastal area showing an increase in annual value (2.5%).

That area's average sale price was $230,561.

The index showed a 3.9% decline in Central/Northern city values (average sale price: $264, 635), a 3.4% fall in the Southern City ($268, 629) and a 0.1% decline in the Taieri ($275,641).

A continuing decline in sales volumes, the impact of increasing interest rates and decreasing immigration had continued to cause earlier growth in residential property values in the city to slow, Mr Paterson said.

Annual residential property values rose 11.1% in the Waitaki ($220,156), 3.1% in Central Otago ($326,400), 6.2% in Clutha ($165,333), 1.1% in Queenstown Lakes ($552,594) 10.1% in Southland ($222,128) and 7.3% in Gore ($165,023), the figures showed.

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