Queenstown values float above Auckland

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On the up: Queenstown house values

Queenstown house values are starting to rise again, remaining stubbornly above those in the wider Auckland region.

According to Quotable Value data released yesterday, Queenstown’s July values are at $1.09 million, $44,500 above wider Auckland’s $1.04m.

In saying that, eight suburban Auckland areas are well above Queenstown.

QV’s Andrea Rush says July’s nationwide residential property values increased 6.4 per cent on a year ago which was the slowest annual rate since February 2015.

Quarter on quarter, national values rose 1.6 per cent, leaving the nationwide average value at $641,280.

She says the July index shows nationwide values are still rising, but that growth was now being driven by regional and provincial centres, rather than by the largest cities.

”Much of the slowdown in the markets is being caused by high prices and banks’ stricter lending criteria, meaning it’s difficult for many buyers to raise finance to purchase and this is now constraining the market,” Rush says.

Rush says the Queenstown market has begun rising after a period of ”relatively flat growth”, being up 4.9 per cent during the past three months.

That may have been driven by strong value growth at the top end of the market.

Central Otago has also had values rise 4.8 per cent during the same period and they continue to rise in the MacKenzie and Clutha districts.

Rush notes both Dunedin and Wellington were now also experiencing a similar trend where quarterly value growth in both cities was slowing, to below 1 per cent.

”Record high net migration continues yet building consents are now trending downwards, so the underlying demand and lack of supply for homes remains in the market, particularly in Auckland,” she said.

It’s likely those trends will continue for the rest of the winter and many buyers and sellers are taking a ”wait and see approach” until after winter and the September election, Rush says.

QV’s Dunedin registered valuer Aidan Young says the Dunedin residential property values had continued to rise, but at a slower rate than earlier in the year, as quarterly growth slowed to 0.6% during the past three months.

Dunedin’s average house value is now $373,857, having risen the most during the past quarter in Taieri, up by 2.1 per cent, while values on the Peninsula and Coastal areas dropped by 2.7 per cent over the same period.

Otago Daily Times