House prices still going up, but more slowly

  • 01/09/2017
Auckland houses on average are worth more than $1 million.
Auckland houses on average are worth more than $1 million. Photo credit: Newshub.

The nationwide average house price is more than 29 percent more than it was in 2007, but the annual rate of increase is slowing.

In the year to August, house prices were up 4.8 percent across the country, the slowest annual rise since 2012, according to newly released figures from Quotable Value.

The average price for a house in New Zealand is now $641,648, 54.9 percent above the market peak rate in 2007 - although adjusted for inflation, values are 29.3 percent above the 2007 peak.

Residential property values across the Auckland region increased 2.8 percent in the past year, the slowest annual rate of growth since October 2011.

The average value for an Auckland house is $1.042 million, more than 59 percent higher than the 2007 height when adjusted for inflation.

Elsewhere, a Wellington home costs an average of $605,435 (up 12.9 percent in the past 12 months), Queenstown's average is $1.098m (up 18 percent) and Rotorua properties have risen 17.1 percent to $407,318.

There have been double-digit rises in the past year for Whangarei, Napier, Hastings, Palmerston North, Nelson and Dunedin, while Christchurch prices are up just 0.1 per percent.

"Value growth is particularly strong in the Hawke's Bay, South Wairarapa and Masterton markets, which continue to benefit from those moving out of Auckland and Wellington looking for more affordable housing and a better lifestyle," says QV spokeswoman Andrea Rush.

Ms Rush said winter, stricter lending criteria from banks and an impending general election are factors that slow the property market.

Other provincial areas showing strong growth include Gisborne, Whanganui, Nelson/Marlborough, Central Otago and Waitaki, while Invercargill, the West Coast and Hurunui are showing drops in house values.