Housing values were largely flat in Central Auckland, Waitakere and Manukau in December but continued rising in other parts of Auckland and elsewhere in the country, according to the latest figures from Quotable Value (QV).
According to QV, the average value of homes in Central Auckland (the area within the boundaries of the former Auckland City Council prior to the Super City amalgamation) was $1,095,838 in December, barely changed from November's average of $1,095,480. Nonetheless this was up 20.7% on December 2014 (see the chart below for average values in all districts of NZ).
Similarly, the average residential property value in Manukau was $796,027 in December, down slightly from November's average of $796,950, but up 26.3% compared to December 2014. The average value of homes in Waitakere increased slightly from $747,664 in November to $748,011 in December, which was up 25.6% for the year.
The North Shore posted modest increases in December, with an average value of $1,089,745 compared to $1,088,059 in November but December's figure was still up 22% for the year.
The biggest rises in housing values in December were on Auckland's northern and southern flanks, with average values continuing to rise strongly in Rodney, Papakura and Franklin.
The average value of all homes in the Auckland region rose from $931,807 in November to $933,264 in December, up 22.5% compared with December 2014.
The biggest value increases in Auckland during the year were in south Auckland, with average values in Papakura up +29.9% in December compared to a year earlier, followed by Manukau Central +29.3% and north west Manukau +28% (refer chart below).
Changes starting to bite
However the figures also suggest the rate of growth in property values in Auckland is slowing.
In November last year the average value of Auckland homes was up 24.4% compared to a year earlier, but in December that had fallen back to 22.5%.
In Waitakere the annual increase in average values dropped from 28.4% in November to 25.6% in December, on the North Shore it dropped form 24.1% to 22%, and in Central Auckland it dropped from 22.8% to 20.7%.
QV national spokesperson Andrea Rush said tougher LVR restrictions for Auckland property investors and new tax rules for property buyers who sell houses within two years had slowed the Auckland market towards the end of last year. Foreign buyers also now have to register with the IRD and have a New Zealand bank account. (A clamp down by the Chinese government on money flowing out of China has also been cited as helping slow the Auckland housing market).
"Following the introduction of the new measures in October and November, the rate of growth in the Auckland market slowed, while values in many other centres including Wellington and Dunedin saw significant value increases," Rush said.
It is also likely that the full effects of the changes are not yet showing up in QV's figures because it can take two or three months or even longer from the time a sale price is agreed for it to flow through to QV's valuation updates.
Strong growth in Tauranga & Hamilton
In most parts of the country outside of Auckland, December's average values continued to rise compared to November and December 2014.
There were particularly strong rises in Hamilton where December's average of $444,211 was up 19.5% on a year earlier and in Tauranga where December's average of $541,881 was up 18.2% for the year.
But growth in values was much more subdued around the rest of the country, with the annual increase in average values in all districts south of the upper North Island (except Queenstown Lakes and the MacKenzie country) confined to single digits.
In Wellington the average value of homes was $569,370 in December, up 5.2% compared to a year earlier and in Christchurch the average value was $482,043 in December, up just 2.6% for the year.
In Dunedin the average value was $308,944 in December, up 5.7% for the year and in Queenstown-Lakes it was $776,671, up 12.1%.
QV Average Residential Property Values $ |
||||
| Area | Dec-14 | Nov-15 | Dec-15 | Annual Change |
| Auckland Region | 761,858 | 931,807 | 933,264 | 22.5% |
| Wellington Region | 453,366 | 468,902 | 476,634 | 5.1% |
| Main Urban Areas | 575,053 | 667,220 | 669,091 | 16.4% |
| Total NZ | 488,674 | 555,729 | 558,146 | 14.2% |
| Far North | 308,125 | 328,038 | 328,687 | 6.7% |
| Whangarei | 337,190 | 373,559 | 380,592 | 12.9% |
| Kaipara | 339,643 | 357,569 | 365,763 | 7.7% |
| Auckland - Rodney | 686,579 | 801,398 | 815,353 | 18.8% |
| Rodney - Hibiscus Coast | 681,661 | 789,822 | 804,163 | 18.0% |
| Rodney - North | 692,586 | 814,954 | 828,212 | 19.6% |
| Auckland - North Shore | 893,263 | 1,088,059 | 1,089,745 | 22.0% |
| North Shore - Coastal | 1,016,669 | 1,244,613 | 1,244,765 | 22.4% |
| North Shore - Onewa | 727,282 | 877,753 | 878,235 | 20.8% |
| North Shore - North Harbour | 860,260 | 1,048,381 | 1,053,882 | 22.5% |
| Waitakere | 595,498 | 747,664 | 748,011 | 25.6% |
| Auckland - City | 907,819 | 1,095,480 | 1,095,838 | 20.7% |
| Auckland City - Central | 789,752 | 951,386 | 950,815 | 20.4% |
| Auckland_City - East | 1,137,909 | 1,367,684 | 1,373,235 | 20.7% |
| Auckland City - South | 819,352 | 994,392 | 991,153 | 21.0% |
| Auckland City - Islands | 767,788 | 900,946 | 906,239 | 18.0% |
| Auckland - Manukau | 630,167 | 796,950 | 796,027 | 26.3% |
| Manukau - East | 825,278 | 1,019,388 | 1,021,890 | 23.8% |
| Manukau - Central | 479,063 | 622,567 | 619,257 | 29.3% |
| Manukau - North West | 529,243 | 676,901 | 677,480 | 28.0% |
| Auckland - Papakura | 463,342 | 595,557 | 601,717 | 29.9% |
| Auckland - Franklin | 483,529 | 575,259 | 580,110 | 20.0% |
| Thames Coromandel | 507,093 | 544,861 | 546,926 | 7.9% |
| Hauraki | 238,356 | 262,553 | 271,721 | 14.0% |
| Waikato | 287,059 | 330,568 | 344,298 | 19.9% |
| Matamata Piako | 278,741 | 303,531 | 308,130 | 10.5% |
| Hamilton | 371,819 | 435,848 | 444,211 | 19.5% |
| Hamilton - North East | 468,100 | 554,583 | 561,436 | 19.9% |
| Hamilton - Central & North West | 344,506 | 406,515 | 416,497 | 20.9% |
| Hamilton - South East | 342,030 | 396,811 | 406,574 | 18.9% |
| Hamilton - South West | 328,673 | 383,684 | 392,860 | 19.5% |
| Waipa | 347,999 | 381,310 | 389,792 | 12.0% |
| Otorohanga | 182,165 | N/A | 226,071 | 24.1% |
| South Waikato | 130,477 | 144,039 | 139,451 | 6.9% |
| Waitomo | 136,179 | 145,655 | 147,515 | 8.3% |
| Taupo | 337,511 | 356,724 | 362,444 | 7.4% |
| Western BOP | 423,562 | 452,944 | 464,732 | 9.7% |
| Tauranga | 458,521 | 525,758 | 541,881 | 18.2% |
| Rotorua | 269,876 | 291,963 | 295,082 | 9.3% |
| Whakatane | 302,299 | 307,205 | 310,290 | 2.6% |
| Kawerau | 103,391 | 103,741 | 110,062 | 6.5% |
| Opotiki | 197,082 | N/A | 215,732 | 9.5% |
| Gisborne | 225,617 | 232,128 | 230,662 | 2.2% |
| Wairoa | 147,069 | 145,867 | 148,126 | 0.7% |
| Hastings | 297,673 | 317,612 | 322,613 | 8.4% |
| Napier | 328,251 | 338,960 | 343,843 | 4.8% |
| Central Hawkes Bay | 201,592 | 213,234 | 219,067 | 8.7% |
| New Plymouth | 357,617 | 373,450 | 372,385 | 4.1% |
| Stratford | 201,493 | 213,471 | 209,578 | 4.0% |
| South Taranaki | 185,794 | 188,755 | 188,235 | 1.3% |
| Ruapehu | 138,465 | 131,274 | 133,390 | -3.7% |
| Whanganui | 182,365 | 184,696 | 189,161 | 3.7% |
| Rangitikei | 142,772 | 144,644 | 146,693 | 2.7% |
| Manawatu | 242,304 | 252,439 | 253,559 | 4.6% |
| Palmerston North | 289,439 | 298,847 | 301,466 | 4.2% |
| Tararua | 150,712 | 150,797 | 154,386 | 2.4% |
| Horowhenua | 203,725 | 210,957 | 213,309 | 4.7% |
| Kapiti Coast | 377,868 | 388,890 | 390,917 | 3.5% |
| Porirua | 379,342 | 391,273 | 397,607 | 4.8% |
| Upper Hutt | 334,652 | 344,625 | 347,249 | 3.8% |
| Hutt | 369,261 | 383,531 | 388,177 | 5.1% |
| Wellington | 541,093 | 558,211 | 569,370 | 5.2% |
| Wellington - Central & South | 552,105 | 564,985 | 573,201 | 3.8% |
| Wellington - East | 592,682 | 608,460 | 624,730 | 5.4% |
| Wellington - North | 471,642 | 489,284 | 499,707 | 6.0% |
| Wellington - West | 614,826 | 643,393 | 657,850 | 7.0% |
| Masterton | 236,537 | 241,442 | 243,648 | 3.0% |
| Carterton | 260,467 | 260,614 | 265,700 | 2.0% |
| South Wairarapa | 298,231 | 311,263 | 316,877 | 6.3% |
| Tasman | 414,947 | 434,123 | 436,255 | 5.1% |
| Nelson | 410,363 | 424,022 | 428,608 | 4.4% |
| Marlborough | 346,589 | 362,991 | 366,057 | 5.6% |
| Kaikoura | 343,478 | N/A | 369,868 | 7.7% |
| Buller | 202,019 | 191,377 | 189,415 | -6.2% |
| Grey | 224,530 | 212,192 | 202,218 | -9.9% |
| Westland | 227,620 | 229,912 | 231,455 | 1.7% |
| Hurunui | 346,738 | 358,486 | 356,101 | 2.7% |
| Waimakariri | 414,248 | 417,122 | 417,036 | 0.7% |
| Christchurch | 469,742 | 480,464 | 482,043 | 2.6% |
| Christchurch - East | 351,189 | 364,385 | 366,011 | 4.2% |
| Christchurch - Hills | 626,857 | 649,558 | 653,696 | 4.3% |
| Christchurch - Central & North | 551,899 | 565,568 | 567,476 | 2.8% |
| Christchurch - Southwest | 449,896 | 455,177 | 455,464 | 1.2% |
| Christchurch - Banks Peninsula | 486,868 | 487,377 | 489,905 | 0.6% |
| Selwyn | 510,418 | 522,414 | 524,346 | 2.7% |
| Ashburton | 328,349 | 338,255 | 341,748 | 4.1% |
| Timaru | 289,474 | 312,663 | 314,046 | 8.5% |
| MacKenzie | 291,749 | 330,962 | 328,640 | 12.6% |
| Waimate | 200,937 | 210,944 | 215,195 | 7.1% |
| Waitaki | 221,790 | 230,138 | 232,366 | 4.8% |
| Central Otago | 318,988 | 337,421 | 344,080 | 7.9% |
| Queenstown Lakes | 693,045 | 756,665 | 776,671 | 12.1% |
| Dunedin | 292,220 | 306,614 | 308,944 | 5.7% |
| Dunedin - Central & North | 300,925 | 323,425 | 324,600 | 7.9% |
| Dunedin - Peninsular & Coastal | 270,935 | 280,648 | 277,251 | 2.3% |
| Dunedin - South | 278,627 | 287,399 | 291,984 | 4.8% |
| Dunedin - Taieri | 304,430 | 316,037 | 319,020 | 4.8% |
| Clutha | 165,335 | 167,203 | 163,669 | -1.0% |
| Southland | 205,423 | 212,662 | 212,616 | 3.5% |
| Gore | 184,210 | 184,396 | 183,917 | -0.2% |
| Invercargill | 204,705 | 214,880 | 215,327 | 5.2% |
No chart with that title exists.
32 Comments
Is it the effect of Government legislation or is it the Jafa malaise spreading out of Jafaville to the regions? As percentage returns reduce in AK, any investor would be looking to go where they are better. I think this would have happened without the Governments input IMHO.
...though in my travels I note quite a few empties popping up around Hamilton - though some appear to have the little old person baracaded inside (culturally shy?) - windows shut tight, curtains drawn..the odd glimpse of a shadow if you happen to be going past at the right time. No doubt 'minding' the foreign investment for yonder investor.
What a shambles John Key has let develop in our housing market. What a hopeless disgrace of a PM he is.
My father settled in November, I reckon his timing might be pretty good to catch the peak in Auckland. But then he has inflated the prices in one district by buying there. Mind you, he kept the majority in cash so he can spend it on travel ie: not spend it in New Zealand.
To answer the rhetorical question with a question ............. Who cares ?
Unless you are and Aucklander realising the "profit" in an investment property , emigrating from NZ , or retiring to the wop-wops , the whole excersize is academic , if you sell you have to buy again in the same over-inflated market (or rent) so its pretty much a zero sum gain for most of us
Rates don't go up because house prices go up, they go up because we have a far left mayor who can't tell the difference between 3% and 9.9% . Your rates will go up by more than someone else's if your property value rises by more than theirs and you are both in the same region because the total increase for the region is decided beforehand and then allocated across households.
wrong check again rates are calculated on the value of your property it detemines which band you fall into and they havent moved the bands much so if your property goes from 500k to 750 k you now pay 2350 instead of 1733 or even worse if you house goes above a Mil now 2967 , an extra 1200 on five years ago
Rates for 2015/2016 will be calculated using property values from the November 2014 revaluation. In the three years since we last set the rates, residential properties in Auckland increased in value by an average of approximately 34per cent. The new property values will have no impact on the total amount of rates collected by council. Property values simply help to determine how rates are shared across ratepayers
http://www.aucklandcouncil.govt.nz/en/ratesbuildingproperty/ratesvaluat…
not quite, sharetrader.
Unlike central government councils work backwards. First they calculate what their budget will be then they work out how much of that has to be raised through rates. Once they have done that they use property values purely as a way of divvying up the rates burden and introducing a little progressivity into it.
As property values go up the multipliers a council uses go down. I know it is hard to believe but rates in Auckland have not gone up by 50% in the last few years even though property values have.
So you are right in the end that the total rates take doesn't change just because property values move. But the only time your rates go up automatically because of a change in value is when that change is relative to other properties. When all properties go up nothing changes in rates (not automatically anyway).
all i know is i am now in the higher band so am paying more a lot more, and all because of crazy Prices increases in my area, in fact our area had one of the highest increases in the last rates round due to it.
and so by saying your house price does not affect what you will pay is wrong
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11471241
" crazy Prices increases in my area" - that's probably your answer. It is the relative increase in values in your area compared to other areas that is more likely to blame.
It is sometimes hard to tell because, for many reasons, councils have tended over the last 15 years to increase rates by more than CPI. So people like you get a double whammy. And it sounds like it's biting pretty hard.
crazy Prices increases in my area"
this house is not even on the good side, you look over mangroves at industrial area with massive power lines running overhead and the street is only one of three in the middle of mangere bridge industrial estate.
the problem is this type of sale pushes up the values around it and this is only one example there was plenty of this going on last couple of years mostly investors, good on the locals that took the money and ran but for those of us that stayed we ended up with a 16.9% increase in cost to carry on living there
http://www.stuff.co.nz/life-style/home-property/68598011/auckland-house…
http://www.zillow.com/homedetails/607-Cove-Rd-Saint-Michaels-MD-21663/3…{scid=hdp-site-map-bubble-address}
And it sounds like it's biting pretty hard.
its not that i just hate passing my money over to any government department or council to spend as having worked for them out of school years ago i know how inefficent they are and how many nobbies work for them that cant get a real job
Should not moan about rates when you have had massive tax free capital gains; some people should get out more often rather than sitting worrying about how much their house is worth now, Oh dear I've made 500K, now my rates will go up!! Spare us all(particularly non property owners)...
thats the point its called income creep they do it with taxes too, if you only adjust the bands by rate of CPI you can capture a bigger proportion moving up a band and paying more, and who in their right mind wants to hand over more money to a government or council. it just encourages politicians to think of ways of leaving a legacy about themselves
No it's a legal thing. The revaluations are supposed to happen at least every three years. Ratepayers pick up the tab so it's unlikely to be done any more frequently.
Seriously, property values up or property values down makes no difference at all to total rates take.
This is the mechanism they use:
- they have a big spreadsheet with every current rateable property and its value in it
- the accountant gets told at a budget (=Ten Year Plan/Annual Plan) meeting what the target for rates collection is
- the accountant iteratively adjusts the multiplier (i.e. a percentage of a property's value) until the number at the bottom is the one they want
If all houses double in value overnight councils simply halve the multiplier (all other things being equal).
Yes, it doesn't matter if you are already a home owner without having to borrow more or use additional equity to buy something else (and that might be most of us...currently) but the reality is that plenty of people have geared up to chase this thing or allocated their savings into a non productive and illiquid asset. So on one level yes, maybe you personally are not directly affected but on another level, we may all pay the price for overinflated property markets and the inadequate savings and high debt levels that they cause.
Where are all the Awklund property spruikers now ??? ...C'mon I was relying on your ilk to push the median price to $1 mill !! ..... oh well, it was fun while it lasted.
Cue the "maximum immigration, "shortage" of houses, lowest interests rates ever and "best" place to
live brigade" to chime in and say "this property party never ends" because it's MY party ...... it is all based on "fear and greed" - be greedy when others are fearful and fearful when others are greedy - Warren Buffet
Crazy Horse - as soon as the 12,000 foreign investors get their IRD number processed (bit of a backlog at IRD at the moment) then they will start buying again. I predict that the $1m will be reached in the Feb/Mar/Apr period - it has to happen - net migration at record levels, interest rates at record lows, housing inventory low, not enough being built and not enough tradespeople available to build enough to keep up with demand (20,000 shortfall in 2015 alone) etc etc. Just watch this space - the $1m is on it's way!
As it happens, property concerns come into a tape leaked to me. I’ll transcribe it all, so nothing is out of context:
‘Hello, is this the secret number?’
‘Yep, sure is. Who’s this?’
‘John Key. You know. I’m mates with Richie McCaw.’
‘You got us into all that Cameron Slater stuff?’
‘Shhh! ForChrissakes… Anyway it wasn’t me.’
‘So what’s it now then?’
‘It’s about the US missile shield thing.’
‘That’s secret. What do you want to know?’
‘Just some information. It’s important.’
‘I’ll ask. [Quiet, unintelligible] ‘He’s mates with Richie McCaw’.
[New voice] ‘OK. Fire away. But if this comes up in that blog thing.’
‘How could it? Trust me. Listen. The US missile shield. Does it reach right over my place?’
‘Your place? No. Doesn’t come near it.’
‘What? I’m sure it does. It should. It must.’
‘Not on the map, mate. Not your place. Nowhere near. Not my place either.’
‘I’m not talking about your place. Why do you think I care about your place?’
‘You should see my valuations… Wow, month after month… I guess you’re the one to thank…’
‘OK. You’re rich. Everyone wants to be rich. But what about my place?’
‘No. Like I said, nowhere near.’
‘But it must be. It’s part of the US.’
‘The US? Last I heard we were joining up with China. Their embassy lent us the new guy over there. You’d be amazed what he knows.’
‘Will you listen to me?! My place...’
‘First thing he said. Your place part of China now.’
‘China? Hawaii’s not part of China!’
‘Hawaii? What’s Hawaii got to do with it?’
‘My place, you fool! The missile shield! The map!’
‘It’s right here. Auckland. A new map of New Zealand. 2014’
‘Auckland?! New Zealand?! Stuff Auckland! [unclear] New Zealand! Who cares about New Zealand?! I want to know about Hawaii. My house... Hawaii!!’
‘I’ll get the atlas…’
‘For pity’s sake! [unclear] Everywhere. Lunatics.’
‘Oh yes, I see, Hawaii’s covered. It’s a state I think.’
‘All of it? You’re sure? My whole house is right under the shield?’
‘Looks like it to me.’
‘The whole place? Right inside the line… No part sticking outside? The ensuite?’
[Tape breaks here]
Correct bloodymigrant. New Zealand most expensive country in the world to buy - this on CNBC this morning! This is 2016's most pricey country http://video.cnbc.com/gallery/?video=3000480036
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