Housing values cool through winter

New Zealand house values shrank in August as the market cooled in winter, according to state-owned valuer Quotable Value.

National residential property values dropped 1.6 per cent in the three months through August to an average $672,504, although they were still 4.8 per cent higher on an annual basis, QV said. That’s a turnaround from the 1.6 per cent gain in values for the three months through July, and slower annual increase than July’s 6.4 per cent.

“The market is currently experiencing polarising forces with key market drivers such as low interest rates, population growth and lack of supply being countered by tightening credit conditions and a range of Government policy initiatives aimed at cooling the market,” said QV general manager David Nagel.

In Auckland, values rose 0.7 per cent annually but dropped 0.4 per cent in the three-month period to an average $1.05 million.

Wellington property values rose 8.5 per cent in the year and 0.9 per cent in the rolling three-month period to $656,676. Hamilton property values rose 0.3 per cent in the three months through August to $559,190, 2.7 per cent higher than a year earlier. Tauranga values rose 0.7 per cent to $705,383 on a three-monthly basis and increased 1.6 per cent in the year.

Values in Christchurch rose 0.3 per cent annually and fell 0.2 per cent to $494,476. Dunedin values rose, up 11 per cent in the year and 1.7 per cent in the three months to an average $415,888.