Auckland prices slow growth

Weakness in Auckland house prices weighed heavily on the rate of property value growth across New Zealand in June, new data shows.

QV’s latest market update shows the nationwide rate of residential property value growth slowed to 2 per cent last month, from 3.5 per cent a year earlier.

But that was heavily influenced by a drop in Auckland, where prices were down 2.7 per cent year-on-year. Prices in the central suburbs were down 3.3 per cent, Manukau down 1.5 per cent, and Rodney down 1.3 per cent.

Values in other parts of Auckland increased slightly.

Hamilton’s growth rate slowed to 4.7 per cent, while Wellington’s prices lifted 7.9 per cent, and Dunedin’s 12.2 per cent. Christchurch values were up only slightly year-on-year.

QV general manager David Nagel said there was a lack of impetus in the market.

‘‘Demand remains steady and listings relatively low, resulting in stable market conditions but subdued value growth. We anticipate this will continue over the coming months, with supply remaining fairly constrained and demand either staying flat or dropping slightly in many areas.’’

He said affordability was a major constraint and location was becoming increasingly relevant. Townhouses were selling well, particularly in Wellington.

‘‘It’s the outskirts of city centres that continue to see plenty of activity, particularly from first-home buyers,’’ he said.