Property prices shoot up in regions
New data from QV shows it is now regional New Zealand where homeowners are making the quickest capital gains on their properties.
The latest QV House Price index reveals nationwide residential property values increased 12.9 per cent in the year to March, up 0.6 per cent over the past three months.
But while Auckland region’s values increased 12.3 per cent year-on-year, areas such as Rotorua, up more than 28 per cent, Queenstown Lakes District, also up more than 28 per cent, and Hastings, up more than 20 per cent, are the standouts. Wellington had the fastest rise of the main centres, up more than 21 per cent.
‘‘The Wellington region continues to see some of the strongest value growth of any area in New Zealand, particularly in more affordable areas outside the central city such as Porirua and the Hutt Valley,’’ spokeswoman Andrea Rush said.
The QV House Price Index for the wider Wellington region lifted again in March, with home values up 21.2 per cent year-on-year and 3.7 per cent over the past three months.
Porirua values were up the most over the quarter - 7.1 per cent since January and 25.4 per cent year-on-year.
QV homevalue registered valuer David Cornford said: ‘‘Upper Hutt has seen the largest year-on-year value growth followed closely by Lower Hutt and Porirua. First-home buyers continue to look to these regions as they struggle to secure a home in Wellington City where average values are now over $700,000.’’
But things are much quieter in the usual hotspots of Auckland, Hamilton and Tauranga.
The downward trend seen in Hamilton home values since the introduction of the latest round of lending restrictions continued in some parts of the city but other areas saw values stabilising and rising again.
Overall values for Hamilton City have risen 15.7 per cent year-on-year and dropped 0.4 per cent over the past three months.
Home values in Christchurch City are rising again in all areas across the city apart from Banks Peninsula. Values increased 2.4 per cent year-on-year, and 0.6 per cent over the past three months.
In the North Island, all areas saw values rise over the past year. Areas just south of Auckland continued to see strong growth, with South Waikato District values up 35.7 per cent year-on-year, and Rotorua up 28.2 per cent since March 2016 and 4.5 per cent over the past three months. Values were rising in Whakatane, Opotiki, Gisborne, Rangitikei, Whanganui, Palmerston North and the Horowhenua after many years of relatively low value growth.
Andrew King, president of the NZ Property Investors Federation, said Rotorua seemed to be short of rentals, which was driving demand. Investors who had been priced out of Auckland were looking to regional centres, he said.
In the South Island, most areas saw values rise over the past year with the exception of the Grey District on the West Coast.