Queenstown only place In NZ where prices are on rise
Wellington is leading the way when it comes to double-digit quarterly declines in property values around New Zealand – recording a -17.6% loss in October.
Other areas experiencing big price falls include Auckland (-11.7%), Hamilton (-10.5%), Napier (-11.6%), Hastings (-11.5%), Palmerston North (-13.7%) and Dunedin(-10.4%).
Meanwhile, Queenstown is the only location in New Zealand that recorded positive home value growth in the most recent quarter.
The latest House Price Index from Quotable Value (QV) – New Zealand’s largest valuation and property services company – shows the average home decreased in value by 3.9% over the three months to October 2022. This is an improvement from the 5.4% quarterly reduction reported at the end of September 2022 with the national average home price now sitting at $951,040.
CoreLogic’s House Price Index also show similar property value declines – with Wellington values falling 15.9% in November.
QV chief operating officer David Nagel (pictured above) said the traditional spring upswing in the residential property market had not amounted to much more than a small speed bump in 2022.
“There are only a few pockets of true home value growth to speak of and only a relatively small decline in the market’s downward trajectory these past two months in a row,” Nagel said.
“But we have certainly seen a seasonal surge in the number of properties coming on to the market, as spring is often seen as a good time to sell with longer days and summer looming on the horizon. This has kept downward pressure on prices, especially as interest rates have also risen and are expected to climb further to stifle high inflation.”
Auckland
Nagel said the Auckland region’s average rate of home value decline had now officially hit double figures for the 2022 calendar year.
“The regional average is now a 11.7% decline in the 10 months to the end of October,” he said. “Only Rodney (-7.2%) and Franklin (-8.9%) remain in single digit declines, with the largest average reductions occurring across Auckland’s central suburbs (-12.4%) on the North Shore (-12.1%) and out west in Waitakere (-11.9%).”
Northland
Nagel said October marked the sixth straight month of declining home values in the Northland region.
“Residential property values have declined across the Northland region by an average of 3.5% so far this calendar year, including a reduction of 2.8% this quarter,” he said.
“Whangarei (-4.1%) saw the biggest average declines in the three months since the end of July, with home values in Kaipara (-2.1%) and the Far North (-0.8%) holding up somewhat better. For comparison, home values declined by an average of 3.9% nationally this quarter.”
Rotorua
Nagel said demand for residential property remained largely subdued in Rotorua, though the current downturn was providing some hope for first home buyers.
“The average home value has declined across the city by 3.6% this quarter to $681,955, which is marginally better than the 4.1% quarterly decline and roughly in line with the national average over the past three months to the end of October (-3.9%),” he said.
“Annually, home values have fallen by 5.4% since the same time last year, which includes an 8.8% drop for this calendar year.”
Wellington
Nagel said the residential property market had been subtle at best in Wellington this year.
“Home values have fallen by an average of 6.8% across the wider region this quarter – a marked improvement on the 9.6% QV reported at the end of September, but still a significantly larger decline than the national average of 3.9%,” he said.
“Hutt City (-8.8%) and Upper Hutt (-7.6%) posted the largest average home value losses this quarter, with the average home value in the region now sitting at $894,913 – 16.3% lower than at the end of October last year.”
Canterbury
Nagel said values in Canterbury fell by an average of 0.5% across the wider region in October.
“Meanwhile, the rolling three-monthly rate of decline decreasing from an average of 2.3% to 1.7%, considerably better than the national average, which was a 3.9% decline for the October quarter,” he said. “The largest declines this quarter were in Hurunui (-3.2%) and Selwyn (-2.4%).”
Dunedin
Nagel said Dunedin’s rate of home value decline hit a small speed bump in October.
“The average home value in the city experienced a marginal increase of 0.6% in October to $650,227, breaking a nine-month consecutive streak of declining home values,” he said. “However, values remain 1.5% lower this quarter and 10.4% lower than at the start of 2022.”
Queenstown
Nagel said Queenstown stood alone as the only New Zealand main centre to record positive home value growth for the quarter.
“The latest QV House Price Index shows the average home value in Queenstown actually increased by 2.9% this quarter to $1,700,421. The tourist town is still showing positive home value growth of 4.9% for the 2022 calendar year – a stark contrast to an average decline nationally of 9.7%.”
Meanwhile, not only are house prices falling but realestate.co.nz shows property listings have declined nationally in October.
