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Auckland house prices lift national average

Author
Michael Sergel,
Publish Date
Tue, 2 Jun 2015, 6:08PM
Photo / Getty Images
Photo / Getty Images

Auckland house prices lift national average

Author
Michael Sergel,
Publish Date
Tue, 2 Jun 2015, 6:08PM

Auckland's housing boom is pushing up national housing values.

Nationwide residential QV values increased 6.4 percent over the past year and Auckland prices increased 13 percent.

QV spokeswoman Andrew Rush says other major centres are showing moderate growth, and provincial markets are showing a mixed picture.

"Quite a few are showing moderate increases in value, some are flat and some are declining."

Andrew Rush says new homes are proving more popular and becoming more expensive because the LVR rules for a minimum 20-deposit don't apply to those sales.

"We're starting to see values going up for these because it's a lot easier to get finance and you only need around 10 percent deposit for these."

Auckland property values

The super city's property valuations are continuing to surge ahead of other centres.

Harcourts figures for February put the average property price in Auckland and Northland at a 12-month high of $767,000.

There are also signs that more homes are being sold and fewer are being put on the market.

Provisional data shows new listings were down 7.4 percent compared with February last year, while written sales increased 3.5 percent.

Harcourts chief executive Hayden Duncan says a number of factors are contributing to reduced supply.

"The increasing population and the under-investment in development in New Zealand are starting to come home now."

Hayden Duncan says the tightening supply is the result of supply and demand.

He says the situation won't change by increasing supply at the current rate.

"That's not going to change the trajectory we're on as far as demand for housing in Auckland - it is going to get more competitive."

Other major centres

Residential property values in Hamilton increased 3 percent year-on-year, and Tauranga values increased 4.8 percent.

Bay of Plenty valuer Mairi Macdonald says the Tauranga market is see increased interest from buyers and a lack of supply in the middle range.

Wellington values increased just 0.9 percent year-on-year, Christchurch increased 3.4 percent and Dunedin values rose 1.2 percent.

Values also increased faster in provincial markets close to Auckland, like Hauraki, Waikato, Kaipara and Thames-Coromandel districts.

 

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