'Late spring surge' sees property prices jump across New Zealand

There has been a "late spring surge" in property prices across New Zealand, according to the latest QV House Price Index.

The new figures reveal the average value of properties on the market in October increased 2.8 percent year on year to $697,204 - which is a 1.4 percent jump over the last three months.

Some of the growth can be attributed to what QV is calling a "late spring surge", the result of record-low mortgage interest rates and a shortage of quality real estate listings. While spring typically brings a rise in house listings, listings are currently down across the country.

The main centres with the greatest increases in average value over the last three months are Dunedin with a 6 percent rise, Invercargill which saw prices jump 5 percent and Palmerston North, which saw a 4.6 percent increase.

"The residential markets of all our main cities have shown value growth over the past three months, with this largely attributed to the recent reduction in interest rates by the major banks," QV general manager David Nagel said.

"Even the markets which have struggled over the past few months, such as Auckland and Christchurch, are showing a resurgence in prices achieved."

Auckland saw a jump of 0.6 percent to $1,031,447, while Christchurch saw a slight rise of 0.4 percent to $499,840.

But the greatest growth was in some of the smaller regional towns. Otorohanga and Stratford Districts saw residential values increase 33.6 percent and 19.8 percent respectively over the last year.

Nagel said all eyes are now on the predicted loosening of the LVR (loan to value ratios) restrictions by the Reserve Bank later in November. He said this could attract new players into the market.

Averages values in main centres (three month change): 

'Late spring surge' sees property prices jump across New Zealand
Photo credit: QV.