Quotable Value says NZ house values steady overall in July. Auckland, ChCh firmer, while Wellington weaker and Hamilton, Dunedin stable

By Bernard Hickey

Government owned property valuation service Quotable Value (QV) has reported house values were stable nationwide in July.

But QV said there were signs of strengthening valuess in central Auckland and Christchurch, while values were falling in Wellington and flat in Hamilton and Dunedin.

QV's figures are issued monthly and measure movements in values compared on a 'like-for-like' basis in the three months to July. They look at prices for certain properties in certain suburbs and compare them with similar sales a year earlier. The QV figures differ from the Real Estate Institute of New Zealand's (REINZ) figures in that QV's figures look at 'like for like' values rather than raw prices in any one month.

REINZ's figures are for median prices for sales in any one month and are therefore subject to being skewed by larger numbers of sales in any one price bracket, although REINZ does issue a stratified median figure that filters out the 'skew' effect. REINZ's figures are seen as more volatile, but up to date than QV's figures.

“Over the past three months values have increased in many parts of the country, with particular strength in the Canterbury region and parts of Auckland” said QV Research Director Jonno Ingerson.

“Across the wider Auckland area values have increased 2.4 percent since January, and as a result are now 1.9 percent above last year and only 0.6 percent below the previous market peak of late 2007. This growth in values over the past few months has not been evenly spread across the Supercity with the old Auckland City growing the most, modest increases in Rodney, North Shore and Waitakere, while Manukau, Papakura and Franklin have stayed more or less stable” said Ingerson.

“Values in Hamilton, Tauranga and Dunedin have all been relatively stable for the past six months, although declines in the six months prior to that mean that all three areas remain below the same time last year” said Ingerson.

Wellington values have fallen 1.8% since January and now sitting 2.7% down from a year ago.

"Possible Public Sector restructuring remains a dampening factor in the property market," Ingerson said.

Undamaged Christchurch properties rise

Christchurch values had been volatile with increases after the September quake, then falls just before the February quake, and then rises afterwards.

Values across Christchurch have grown 1.1% over the last 3 months and are now 0.5% above the same time last year.

"The increase in recent months is due to increased demand for properties in undamaged areas particularly in the West and North of the City,” Ingerson said.

Values across the rest of the Canterbury Region had also increased in recent months due in part to demand from displaced Christchurch residents.

Values in Ashburton rose 4% over the last three months, while the Waimakariri District immediately North of Christchurch has risen 2.9% and Selwyn District immediately to the West has increased 2.1%.

The average New Zealand sales price over the last three months was NZ$414,261, up slightly from the NZ$412,746 reported last month. QV said this is a less reliable measure of value change than its index.

QV said values in most provincial towns remained below the same time last year.

Wanganui is the furthest below last year at 6.8% down, with Gisborne down 4.6%, Invercargill down 4%, Whangarei down 2.7%, Rotorua down 2.9%, Hastings down 1.0%, Napier  down 1.5%, New Plymouth  down 2.6% and Palmerston North down 1.0%.

Nelson values are at the same level as this time last year while Queenstown Lakes' values were 1.5% up on last year.

(Updated with more detail, chart below)