House values soar

Central Hawke’s Bay property prices have risen 18 per cent in the past year — more than four times the national average.

The latest QV (Quotable Value) House Price Index shows at the end of September show property values in Hawke’s Bay are still on the rise but the run of the past two years appears to have calmed in most areas.

Nationwide residential property values have risen 4.6 per cent over the past year. Those in Napier have risen at twice that rate, and property value rises in Hastings are not far behind.

However, the big improver in Hawke’s Bay was CHB where values rose 18.1 per cent year on year, although they dropped 0.7 per cent over the past three months. The average value in CHB is now $337,773.

Napier values rose 9.7 per cent year on year although dropped by 0.2 per cent over the past three months. The average value in the city is now $511,341.

Hastings values are also continuing to rise — up 7.5 per cent year on year and 2.6 per cent over the past three months. The average value there is now $464,373.

The CoreLogic September index, published on the OneRoof website also indicated the same figures over the past year.

However, CoreLogic NZ head of research Nick Goodall pointed out Napier’s annual growth rate had now dropped below 10 per cent for the first time since May 2016.

“Fifty per cent growth over the two and a half year period between October 2015 and April 2018 was always going to impact affordability, and with an average value now exceeding $500,000 that certainly seems the case.”

OneRoof editor Owen Vaughan said the figures showed that Napier’s property market was slowing.

“The city is a victim of its own success. The boom enjoyed since 2015 has undoubtedly had impact on affordability, with properties now boasting an average value of more than half a million dollars. Affordability is also central to increased growth in Hastings in the last quarter, with average prices in the city sitting almost $50,000 below Napier’s.”

Tremains managing director Simon Tremain agreed.

“I think we are seeing a little bit of a slow-down. The growth is there but it keeps coming back every month when you compare it back to 12 months ago.

“There are still plenty of buyers out there but it definitely has slowed down a little bit. We’ve had a great run and you have to expect a slow-down at some stage.”

Property Brokers Hawke’s Bay regional manager Guy Mordaunt said sales had been “very strong“.

“September was a big month for us. Listings anecdotally seem to be rising but the [Real Estate Institute] statistics will tell when they come out. Hawke’s Bay continues to see strong prices as the supply and demand ledger still falls on the seller’s side although it will be interesting to see what happens if more listings come on in October and November.”

Harcourts Hawke’s Bay general manager James Cooper said the start of spring had lifted the market.

“The start of spring has definitely seen a lift in activity, with our teams taking increased enquiry from homeowners who have been waiting for the end of winter before bringing their property to the market. The Hawke’s Bay market still has a shortage of stock manifesting in strong buyer demand and numerous multiple offers.”