House val­ues soar

CHB Mail - - Front Page -

Cen­tral Hawke’s Bay prop­erty prices have risen 18 per cent in the past year — more than four times the na­tional av­er­age.

The lat­est QV (Quotable Value) House Price In­dex shows at the end of Septem­ber show prop­erty val­ues in Hawke’s Bay are still on the rise but the run of the past two years ap­pears to have calmed in most ar­eas.

Na­tion­wide res­i­den­tial prop­erty val­ues have risen 4.6 per cent over the past year. Those in Napier have risen at twice that rate, and prop­erty value rises in Hast­ings are not far be­hind.

How­ever, the big im­prover in Hawke’s Bay was CHB where val­ues rose 18.1 per cent year on year, al­though they dropped 0.7 per cent over the past three months. The av­er­age value in CHB is now $337,773.

Napier val­ues rose 9.7 per cent year on year al­though dropped by 0.2 per cent over the past three months. The av­er­age value in the city is now $511,341.

Hast­ings val­ues are also con­tin­u­ing to rise — up 7.5 per cent year on year and 2.6 per cent over the past three months. The av­er­age value there is now $464,373.

The CoreLogic Septem­ber in­dex, pub­lished on the OneRoof web­site also in­di­cated the same fig­ures over the past year.

How­ever, CoreLogic NZ head of re­search Nick Goodall pointed out Napier’s an­nual growth rate had now dropped be­low 10 per cent for the first time since May 2016.

“Fifty per cent growth over the two and a half year pe­riod be­tween Oc­to­ber 2015 and April 2018 was al­ways go­ing to im­pact af­ford­abil­ity, and with an av­er­age value now ex­ceed­ing $500,000 that cer­tainly seems the case.”

OneRoof ed­i­tor Owen Vaughan said the fig­ures showed that Napier’s prop­erty mar­ket was slow­ing.

“The city is a vic­tim of its own suc­cess. The boom en­joyed since 2015 has un­doubt­edly had im­pact on af­ford­abil­ity, with prop­er­ties now boast­ing an av­er­age value of more than half a mil­lion dol­lars. Af­ford­abil­ity is also cen­tral to in­creased growth in Hast­ings in the last quar­ter, with av­er­age prices in the city sit­ting al­most $50,000 be­low Napier’s.”

Tre­mains man­ag­ing di­rec­tor Si­mon Tre­main agreed.

“I think we are see­ing a lit­tle bit of a slow-down. The growth is there but it keeps com­ing back ev­ery month when you com­pare it back to 12 months ago.

“There are still plenty of buy­ers out there but it def­i­nitely has slowed down a lit­tle bit. We’ve had a great run and you have to ex­pect a slow-down at some stage.”

Prop­erty Bro­kers Hawke’s Bay re­gional man­ager Guy Mor­daunt said sales had been “very strong“.

“Septem­ber was a big month for us. List­ings anec­do­tally seem to be ris­ing but the [Real Es­tate In­sti­tute] sta­tis­tics will tell when they come out. Hawke’s Bay con­tin­ues to see strong prices as the sup­ply and de­mand ledger still falls on the seller’s side al­though it will be in­ter­est­ing to see what hap­pens if more list­ings come on in Oc­to­ber and Novem­ber.”

Har­courts Hawke’s Bay gen­eral man­ager James Cooper said the start of spring had lifted the mar­ket.

“The start of spring has def­i­nitely seen a lift in ac­tiv­ity, with our teams tak­ing in­creased en­quiry from home­own­ers who have been wait­ing for the end of win­ter be­fore bring­ing their prop­erty to the mar­ket. The Hawke’s Bay mar­ket still has a short­age of stock man­i­fest­ing in strong buyer de­mand and nu­mer­ous mul­ti­ple of­fers.”

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