Rotorua house prices increasing the most in New Zealand, QV price index shows
For more than a year, the advice to Aucklanders struggling to buy a home was to move out of the city and somewhere else. The latest QV data suggests that may not be as easy as first thought.
While residential property values are stalling in the main centres across the country, the same can't be said for the regions.
Rotorua took the crown for the fastest growing property values in the past 12 months, increasing by 27.8 percent to an average value of $396,423.
Despite the increase, it's still reasonably achievable, as despite Auckland's increase slipping to 10.7 percent, the slowest annual rate of growth since December 2014, it still has an average value of $1,043,830.
Queenstown Lakes District, Hastings and Whangarei also saw increases, of 23.7 percent, 22.8 percent and 20.1 percent respectively.
Massey University Associate Professor of Property Graham Squires told Newshub it's because people want something new.
"Alternative destinations might be some of the underlying reasons for these places becoming more popular," he said.
Wellington's prices rose faster than Auckland's, an increase of 21.2 percent bringing the average price to $602,230.
Christchurch and New Plymouth saw the lowest gains, at just 1.4 percent and 8.8 percent respectively.
For Christchurch it's still 30.7 percent higher than the previous peak of 2007, bumping up the average value to $495,855.
Overall, house prices are increasing at their slowest rate since 2015, at just 11.1 percent and settling at an average price of $631,147.
Assoc Prof Squires said it's unclear what will happen next.
"It might be a blip in the cycle or it might be the start of a wider trend, it's too early to tell, I would say," he said.
QV National spokesperson Andrea Rush said the first home buyer share dropped from 21 percent to 20 percent over the last year.
QV house price by largest increase and average value
- Rotorua - 27.8 percent, $396,423
- Queenstown Lakes District - 23.7 percent, $1,041,830
- Hastings - 22.8 percent, $408,510
- Wellington Region - 21.2 percent, $602,230
- Whangarei - 20.1 percent, $477,765
- Tauranga - 17.5 percent, $678,643
- Napier - 17.2 percent, $425,484
- Dunedin - 17.0 percent, $371,739
- Nelson - 16.9 percent, $527,422
- Palmerston North - 14.9 percent, $354,999
- Hamilton - 14.4 percent, $538,832
- Invercargill - 11.0 percent, $239,486
- Auckland Region - 10.7 percent, $1,043,830
- New Plymouth - 8.8 percent, $418,445
- Christchurch - 1.4 percent, $495,855