Wellington leads house price lift

Wellington house prices led a nationwide lift over the past three months, the latest statistics from Quotable Value (QV) show.

Across the country, prices were up 6.4 per cent in the year to November, compared with annual growth of 3.9 per cent in October.

QV spokeswoman Andrea Rush said nationwide house prices were up 3.6 per cent over the past three months, led by Wellington, Dunedin and some regional centres.

Values across the whole Wellington region rose 9.8 per cent in the year to November and 2.6 per cent for the quarter.

In Dunedin, prices were up 13.1 per cent for the year.

QV Wellington senior consultant David Cornford said listing numbers had increased over the past month.

‘‘However, supply is still tight and a sellers’ market prevails. Strong prices are being achieved and we are still seeing value growth in the market; however, this is much more moderate compared to 2016. Market activity has picked up over November; however, it remains subdued when compared to the same time last year,’’ he said.

In Auckland, prices are down 0.5 per cent on the same time the year before, the slowest rate since March 2011.

Christchurch’s prices also softened, down 1.5 per cent.

QV senior consultant James Steele said values were holding in sought-after areas of Auckland but had fallen in places that were further away from the CBD.

‘‘An oversupply in some areas of Manukau is continuing to cause a decrease in prices, particularly in large new subdivisions which are above the median house price, while in parts of Waitakere values have also dropped back in some suburbs.’’

Hastings had the biggest increase in prices compared with the year before, at 18 per cent.

‘‘Values in Hamilton and Tauranga ticked down slightly and some areas to the south and north of Auckland that have seen very strong growth in recent years also saw values drop significantly, including the Kaipara and Hauraki districts, [which were] both down around 4 per cent over the past quarter,’’ Rush said.

The market could pick up further over the coming months.

‘‘The easing in loan-to-value restrictions in January and retail banks’ lending criteria is likely to help improve activity and demand in housing the market as we move through the summer months,’’ Rush said.

‘‘But it’s possible the usual slowdown over the Christmas period may mean we don’t see the full impact of this until February and March next year.’’

It is not just house prices that are rising in Wellington – pressure on rents continues.

Cornford said investors had talked about ‘‘evaluating their property portfolios’’ due to the Government’s announcements about minimum standards to be introduced for rented homes.

‘‘There is strong upwards pressure on rents throughout the region with demand out stripping supply for rental properties.’’