Property values continue slide

Dunedin property values continue to slide, according to the Quotable Value August residential price index.

Property values in Dunedin have now decreased by 1.8% since March, with an average sales price of $274,485 last month.

"The property market in Dunedin shows a continuation of the flat-to-declining growth that has been evident over the winter period.

"This trend has been evident in all sub-sectors of Dunedin," Tim Gibson, of QV Valuations, said yesterday.

"August has been characterised by fewer listings of residential property and continued low numbers of active buyers in the market.

"A total of 400 sales were registered within Dunedin city for the month of August, which is a decrease of 13% from the previous month," Mr Gibson said.

"Well-presented dwellings are still moving reasonably quickly, as long as the vendor is realistic and ready to meet current market conditions and not holding out for values experienced in 2007."

Economic indicators, such as the volume of building consents issued during August, pointed to a lack of confidence in the property market, Mr Gibson said.

The number issued for August was 9% below the same month last year.

Queenstown Lakes values were 1.5% below the same time last year, but remained the most expensive real estate in New Zealand with an average price of $578,799.

Property values across New Zealand continued to decline last month, with values now 5% below the market peak of late-2007.

"The market sentiment remains cautious, with little sign of urgency amongst buyers," QV valuation manager Glenda Whitehead said.

"There is still a considerable backlog of unsold property on the market, although the number of new properties being added to this pool appears to have slowed as potential vendors choose to wait until the market begins to show signs of recovery."

She said potential buyers were also struggling to secure funding from banks or finance companies, which remained cautious.

While values had declined, the average national sales price increased slightly, from $407,191 to $409,700.

However, this increase was due to fewer sales of lower value properties over recent months.

The residential price index is calculated using sales data from the three months leading up to the month being reported.

It differs from the average sales price, which fluctuates in line with the mix of properties selling in upper or lower price brackets.

- nigel.benson@odt.co.nz

 

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