Property values up despite market uncertainty

Property prices in Auckland and Christchurch have dipped in the past three months, but nationwide values continue to climb, according to the latest figures from QV.

QV spokeswoman Andrea Rush said this trend of falling prices was also seen last year at this time after new loan-tovalue-rules (LVR) were implemented by the Reserve Bank, but prices picked up again by April 2016.

‘‘So it’s possible the latest quarterly decrease seen in parts of Auckland will be relatively short-lived as the market drivers of relatively low interest rates, strong net migration and a high number of sales to investors remain,’’ Rush said.

February’s QV House Price Index shows that nationally, house values increased 13.5 per cent in the year to the end of January and just over 1 per cent in the past three months, taking the national average value to $631,349.

The average value of a house in Auckland remained above the million-dollar mark at $1,043,680 although down slightly on the previous quarter.

Auckland QV home value manager, James Steele said there continued to be uncertainty around where home values were going.

‘‘There has also been a surge in listings coming onto the market during February which is giving buyers more choice,’’ Steele said.

‘‘Some investors, who have been taking a wait and see approach since the latest round of LVR restrictions, have reportedly started looking again to see areas where they may get a bargain.’’

Similarly, in Christchurch home values were down slightly by 0.5 per cent over the past three months. The average value in the city is now $498,710.

QV Christchurch, valuer Daryl Taggart said, the Christchurch market is showing normal levels of activity.

‘‘Well-presented properties in desirable locations that are marketed for the right price are selling quickly and continue to be in strong demand,’’ Taggart said.

Property values in the Wellington Region continue to rise, up 21.5 per cent year-on-year and more than 4 per cent over the past three months.

QV valuer, David Cornford said, buyer demand remains strong in the Wellington market with values still increasing, but at a more steady rate.

‘‘The market is less frantic than it was prior to the latest round of LVR restrictions, with fewer investors active in the market and buyers are taking a more measured approach,’’ Cornford said.

Hamilton has shown similar trends to Auckland and Christchurch with a 0.8 per cent drop over the past three months.

QV valuer Stephen Hare said, properties in the $400,000 to $500,000 range had become a rarity and were attracting strong demand from first home buyers who were snapping them up.

‘‘There is still good activity and demand in the Hamilton market and there have been more listings coming onto the market during February,’’ Hare said.