House value growth slows across New Zealand, regions remain more affordable

House value growth is slowing across New Zealand, according to the latest QV figures.

On Wednesday, QV released their value growth figures which reveals growth nationally has slowed from 7.6 percent  annual growth in April last year to 2.7 percent last month. The average national price is $686,975.

However, homes throughout New Zealand has seen a 0.4 percent value growth in the last three months.

In Auckland, growth has dropped 1.5 percent compared to April last year and 1.2 percent in the last quarter to an average value of $1,033,583.

QV general manager David Nagel said that slow down could be expected as developers trended towards smaller, lower-value, one and two bedroom properties.

In the capital, home value growth rose by 1.8 percent in the last three months.

Gisborne had the largest quarterly jump with 8.7 percent growth, followed by Horowhenua and Rotorua on 8 percent and 7.6 percent respectively.

House prices in Gisborne and Horowhenua average about $350,000 to $370,000.

"Our latest figures show that while the rate of national value growth continues to slow year on year, our more affordable regions continue to attract plenty of buyer demand resulting in solid value growth," said Nagel.

Dunedin saw the greatest jump of the main centres with 4.9 percent quarterly growth.

Nagel said the Government's decision to reject a capital gains tax should "give investors more certainty around their property decisions and may inject a bit of much needed energy into the market".