Growth for some, slowdown for others
Hamilton
Hamilton's housing market remains relatively buoyant, with the city's median value up 0.9 percent over the last three months and 5.6 percent to $570,000. Unlike Auckland, the city hasn't suffered a slowdown, but sales volumes are currently tracking 30 percent behind those of 2018.
Some parts of the city are better than others, with Hamilton Central, Silverdale and Whitiora seeing a 10 percent or more lift in median values year on year.
Tauranga
The median value of all housing in Tauranga is up 4.7 percent year on year to $670,000, but growth has slowed somewhat in the last three months, with values up just 0.7 percent.
Sales volumes are down significantly compared to the same period last year, but the good news is that investors are returning to the fray after sitting on the sidelines for the last two years.
Tauranga’s top performing suburbs are Gate Pa, Maungatapu, Parkvale, Poike, Tauriko and Welcome Bay - all up between 6 and 8 percent over the last 12 months. With the exception of Tauriko, the appeal of these suburbs lies in their relatively affordable price points - all have median values below $650,000 (Tauriko's median value is $1.33 million), attracting first home buyers and investors alike.
Wellington
Price growth in the capital appears to have stabilised, with the median value of all housing in the city currently sitting at $770,000, a rise of 5.5 percent on last year but more or less unchanged since the third quarter of the year.
This may be the result of a dip in purchases by first home buyers - the dominant buyer group in the city.
Regardless, affordable housing is driving much of the growth in the city, with the biggest leaps in median values in Grenada North, Newlands, Paparangi, Tawa and Te Aro. All enjoyed value growth of more than 10 percent year on year and all have median values of below $700,000.
Christchurch
After a lengthy period of little to no growth,
Christchurch's housing market saw a slight increase in value levels over the past quarter of 1.1 percent, bringing the city's median value to $445,000.
This rise appears to have been fuelled by an uptick in buying activity by investors, who appear to be targeting new builds, which are more affordable in Christchurch than in other main centres.
With the majority of sales transacting between $400,000 and $500,000, the city remains popular among first home buyers, who represent 29.49 percent of new mortgage registrations.
Dunedin
Dunedin remains the strongest performer among New Zealand's major cities. Annual house price inflation is currently 16.9 percent, (and quarterly growth is 2.3 percent), making Dunedin the only main housing market experiencing double-digit value growth.
The median value for all residential properties in the city is $450,000, which is why the city continues to appeal to first home buyers, who currently represent 28.18 percent of new mortgage registrations. However, as observed last Property Report, first home buyer activity is slowing, which suggests property prices are beginning to exceed the budgets of most first home buyers.
Queenstown
House price growth in Queenstown has stalled, with the median value of all properties in the city up just 1.3 percent to $987,500. This stalling is considered the net result of continued declines in market activity in the area.
Residential sales volumes fell 15.4 percent between 2017 and 2018, and have continued to slide in 2019, with current sales volumes over the last 12 months down more than 40 percent.
Much of the “blame” for the drop in Queenstown's housing market can be attributed to the overseas buyer ban, which has cut off a key group of buyers that helped push up values over the last two decades.
Multi-homeowners - those purchasing a second property - are the only group who have increased their share of new mortgage registrations in the city compared to the same period last year. They represent 14.61 percent of new mortgage registrations, whilst registrations to investors and first home buyers continues to decline - not surprising given the lack of affordable housing.