Property values jump in regions, drop in Auckland

The average national property value has jumped more than 2 percent over the last year thanks to a strong performance in the regions, but Auckland property values have dropped.

The latest property value growth figures from QV have been released and show the market is having a quiet winter, with the national average value up only 0.1 percent in the last three months. That's compared to a 2.2 percent increase over the past year.

The regions are helping keep those numbers up, with a 2.5 percent increase over the last quarter in Hastings, a 2.4 percent jump in Palmerston North and a 3.2 percent leap in Invercargill.

In Auckland, value growth is down 0.8 percent over the last three months to an average value of $1,025,389. That is down by 2.6 percent year on year.

Quarterly growth figures.
Quarterly growth figures. Photo credit: QV.

QV's general manager David Nagel says the numbers show the trends of sluggish value growth and low overall supply mixed with pockets of strong growth are continuing.

"The regions that continue to see the strongest value growth, such as the Bay of Plenty, Hutt Valley and Porirua, are generally those offering more affordable property in areas where the local economy provides plenty of job prospects within a commutable distance," said Nagel.

While Tauranga has seen a 0.3 percent drop in the last quarter, year on year it is up 5.3 percent to an average value of $738,277. The Western Bay of Plenty is up 6.9 percent over the last year to an average of $673,793.

Upper Hutt property values rose 15.9 percent year on year, Lower Hutt is up 10.8 percent, and Porirua jumped 11.2 percent.

"In the coming months, we're anticipating no major changes in market activity. Market conditions appear to be relatively stable, with record low interest rates likely to continue supporting steady buyer demand," Nagel said.

"As per usual, as we emerge out of winter, we're expecting a slight increase in listings and sales volumes although this won't have a substantial impact on market trends."