City records biggest surge in regional house values

Invercargill housing has had a surge in quotable values for the three months to September, reporting strong growth against many other regions in the country.

The latest QV House Price Index shows nationwide residential property values had increased steadily during the past year by 4.6 per cent, although they did fall by 0.6 per cent in the three months to September.

Invercargill had a 4.7 per cent increase during the past three months, pushing the average value to $277,379. It was the biggest change recorded in the regions for the latest data.

The QV report says in the South Island, solid value growth continues for most regions, before highlighting Invercargill had experienced strong annual growth rates.

Clutha and Gore were also noted for strong quarterly growth figures.

QV general manager David Nagel said: ‘‘While market activity doesn’t appear dramatic on the surface, there is plenty happening behind the scenes. Investors and first-home buyers continue to transform the makeup of more affordable areas on the outskirts of our city centres.

‘‘Investors, in particular, are attracted to these areas.

‘‘The continued slowdown in the rate of value growth in our main centres continues to have a ‘trickle-down’ effect on our regional centres, with many smaller provincial areas experiencing a gradual slowdown.

‘‘In saying this, regions that offer more affordable properties or exceptional lifestyle opportunities continue to see strong value growth.’’