House prices end the year up 3.2pc

The priciest parts of Auckland suffered the most housing market price weakness over the past year, new data shows.

Quotable Value (QV) has released its latest statistics, which show that, nationwide, residential property values finished 2018 up 3.2 per cent on the year before.

But the value increases were not consistent across the country.

In Auckland, prices were down 0.4 per cent in December compared with December 2017.

Elsewhere, prices were up 7.4 per cent in Wellington, up 11.2 per cent in Dunedin, up 3.9 per cent in Tauranga and up 5 per cent in Hamilton. Christchurch property values were also up slightly over the year.

There was also variation within centres.

In Auckland, prices in the sought-after central suburbs dropped by 1 per cent in December compared with the year before. Waitakere’s fell only 0.2 per cent, while prices were up 1.2 per cent in Manukau, 0.6 per cent in Papakura, and 1.1 per cent in Franklin and Rodney.

Nick Goodall, head of research at QV’s parent company, CoreLogic, said affordability was the main driver of central Auckland’s fall.

‘‘When credit is tighter, fewer can afford to buy at that level.’’

The average Auckland property value is still more than $1 million.

Economist Gareth Kiernan said data from Auckland real estate agency Barfoot & Thompson indicated there were not a lot of buyers in the city at present.

In December, the agency turned more than 504 properties, down from 674 a year earlier.

‘‘I wonder if where prices are is keeping buyers out of the market. The affordability situation is really bad so there are not a lot of buyers,’’ Kiernan said.

If the dearth of buyers continued it would put more downward pressure on Auckland prices than had otherwise been expected, he said.

But Goodall said sellers’ stubbornness would put a floor under how far prices could fall in central Auckland.

QV’s Auckland property consultant, Hugh Robson, said the market was holding firm. Wellpresented properties close to amenities were selling well.

‘‘Investor demand appears to remain fairly steady although possibly it’s eased back over the past few months.’’

In Wellington, Upper Hutt was the area of fastest value growth.

Goodall said he expected 2019 to bring more of the same as 2018 for the property market across the country.

The low level of available listings in Wellington would stop prices falling there, he said.

QV general manager David Nagel said the loosening of lending restrictions on January 1, which increased the percentage of lending that can go to owneroccupiers and investors with smaller deposits, could make the property market busier through the early stages of this year.

‘‘[It] should enable some new first-home buyers and investors to enter the market in the coming months. I don’t anticipate this impact to be overly significant, but it may help drive a busy property market in the early stages of 2019,’’ he said.