7% decline in house values

Residential property values in Central Otago have decreased a dramatic 7% in 12 months, QV's residential price index for May shows.

The index, compiled from sales data for the March-May period, showed Cental Otago recorded the second-largest decline of the 70-plus regions, towns and cities the company analysed. Only in Northland was the decline higher, at 12.6%.

The real-estate market had been "very slow" in Alexandra and nearby towns recently, Dunedin QV valuer Tim Gibson said yesterday. It was too soon to say whether the sizeable drop was a one-off or a trend, because sales traditionally slowed as winter approached.

In the Queenstown-Lakes area, property values were down only marginally on a year ago, while in Dunedin they dropped 2.5%. The rapidly decreasing year-on-year values experienced in Dunedin late last year and early this year appeared to have slowed, and values were now "somewhat steady", Mr Gibson said.

Reasonable demand continued for well-presented properties within most Dunedin locations.

"Quick sales are occurring if the property meets all the needs of the purchaser. This is counter-balanced by potential buyers' becoming more particular on their purchases, with any detrimental features of a property usually resulting in longer seller periods and generally greater discounting to secure a buyer."

Some increased sales activity may be attributable to low interest rates allowing some first-home buyers to enter the market, he said.

Nationwide, excluding Christchurch, property values remained steady, the index showed. Values were now 1.6% lower than the corresponding time last year and 5.7% below the market peak of late 2007.

 

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