Auckland House Prices Recorded First Time Decrease In More than A Year But Still Promising
The new investment rules implemented late last year may be the main reason for the drop in Auckland house prices last month. Seasonal variations over Christmas period may also contribute to the dip. However, the average price may rise again next month due to various supporting factors —high migration, low interest rates and insufficient housing supply, said by Andrea Rush, the national spokesperson of QV.
Compared with last year figure, the average price of a home in the former Auckland Council suburbs rose 17.8% – reached to $1,092,459 and it is around $150,000 higher than that of the Auckland region as a whole. The prices are also rising in Wellington but still comparatively affordable as it is not increasing as much as in Auckland. It has increased 5.9% compared with the same period last year to $482,716. Christchurch and Dunedin also recorded good rates over past 12 months where there were 2.7% and 6.1% up and the average price are now $484,118 and $310,887 respectively. Investors buying, renovating and selling properties were also active in Hamilton where increasing rates were observed. “The construction of minor dwellings on sections with an existing home is also on the rise and is popular method for investors to improve rental across their portfolios” said James Wilson, QV registered valuer.
As the builder developers purchase all the bare land, it is more difficult for the average home builders to build their own home. “Builder-developers have purchased a lot of the available bare sections in the city with the intention of building spec-homes to on sell which has resulted in slim pickings for the average buyer looking to build their own home.” said Chris Price, QV registered valuer.
Home values have increased 12.6% over last year and reported 0.7% up with the average value $556,206 in the past three months nationwide.