Prices hit recovery milestone

Home values in Wellington continue to “slowly push upward” reaching an important milestone in their recovery.

The latest QV House Price Index figures showed that for the first time in nearly two years, the wider region’s average house prices were higher than they were a year ago.

That figure was now 2.4% higher than the same time last year – better than most main centres.

The last time Wellington had positive yearon-year figures was in May 2022, when the average house price was $1,028,116.

The region’s average home value increased by 2.5% to $874,295 during the February quarter – slightly down on the 2.8% growth reported for the January quarter.

Kāpiti Coast was up 4.5% over the quarter and Wellington City up 2.6%.

Porirua notched up the smallest quarterly increase with 0.4%.

Guy Mordaunt of real estate firm Property Brokers, which covered Kāpiti Coast, said it was the area’s lifestyle that was drawing people up the coast from Wellington, and now that transport options had improved, it was a more accessible option. “With Transmission Gully making it so easy to get there, you looking at a median sale price that is no different from living in a Wellington suburb, but you’ve got a life away from the city.

“Nowdays, getting out to Paraparaumu, or Raumati or Waikanae is pretty appealing. ”The beach is just there, and you’re into the CBD in the blink of an eye.”

QV senior consultant David Cornford said despite a new wave of listings coming to the market over February, the region has continued to experience “modest value growth”.

Hutt City was the slowest mover with values that were “more or less flat over the month”.

“First-home buyers continue to be active and have the benefit of greater choice with more properties now on the market.

“Well-presented and maintained properties without issues continue to sell relatively well, while properties that require work or have detrimental features have more of a challenge in the current market.”

Just three of the main urban areas QV tracked had more positive home value growth this quarter than last – Tauranga with 3.1% growth, Nelson 1.2%, and Marlborough 3.1%.

Auckland’s three-month rolling average was back in negative territory losing 0.1% for the first time since August last year.

QV said this flattening trend is largely being driven by diminishing demand.

“In some areas, it appears that the increase in the number of new listings that came onto the market in late January and in February appears to have met market demand, cooling competition in places like Auckland in particular, and therefore flattening home value growth.”

“Getting out to Paraparaumu, or Raumati or Waikanae is pretty appealing. The beach is just there ... and you’re into the CBD in the blink of an eye.”

Guy Mordaunt, Property Brokers real estate agent