Regional housing prices pick up

As the value of properties rises in the regions, the wider Manawatu still has some of New Zealand’s cheapest housing on offer, statistics reveal.

Despite significant growth in the value of houses in Rangitikei and Horowhenua, the wider Manawatu still has some of the cheapest housing up for grabs, Quotable Value statistics show.

The latest QV House Price Index shows nationwide residential property values for July increased 6.4 per cent over the past year, the slowest annual rate since February 2015.

The figures showed nationwide values were still rising, but growth was now being driven by regional and provincial centres, rather than large cities, said QV national spokeswoman Andrea Rush.

The average Tararua house increased in value by 11.6 per cent in the past 12 months. Homes there were worth $173,000 on average – some of the cheapest housing in the country. Compared to the housing market peak in 2007, the average house in Tararua dropped by 1.5 per cent in value.

The average home in Rangitikei was about $189,000 - up 21 per cent than the previous year.

The average Palmerston North house was worth 12.2 per cent more than a year ago. The average house was now worth $359,000.

The city’s houses were worth 20.4 per cent more than when the market last peaked in 2007.

Horowhenua homes were up 20.3 per cent in value, hitting an average value of $282,000.

Houses in the Manawatu District were up 14.4 per cent in value, now worth $306,000 on average.

Rush said most provincial areas of the North Island continued to see strong value growth as buyers looked outside of the main centres for more affordable property.

High prices and banks’ strict lending criteria were influencing the market slowdown in the cities, she said.