Quotable Value Ltd’s house price index for Auckland was at a standstill for the 3 months to June, after coming in at a 0.1% rise over the 3 months to May and a 0.4% dip in the 3 months to April.
Over the whole country, the index is in a state of flux – up in one area, down in a neighbour.
The various indexes for Auckland & its components – local government areas on the pre-2010 boundaries and broad splits within them – showed 11 falls in the total 20 areas (which include double-ups) in the April quarter, dropping to 8 falls in the roll to May and down to 7 in the roll to June.
For the year to June, the Auckland index is showing a 7.2% gain, the slowest since September 2012. That 2011-12 period was the start of the break out from the 2011 bottom of the global financial crisis for New Zealand, and property inflation in Auckland sped up through to last year, until Reserve Bank measures, reduced Asian investment and now bank lending restrictions slowed the rise. Adjusted for inflation, QV’s index for Auckland rose 4.9% in the last year, 28.8% since the previous market peak at the end of 2007.
Nationally, the index rose 8.1% over the last year, the slowest rate since March 2015, and 1.2% over the last 3 months. Adjusted for inflation, the annual increase dropped to 5.9% and the rise since 2007 to 28.8%.
QV national spokesperson Andrea Rush said Auckland sales volumes had plummeted 30% below the number a year ago “as high prices, coupled with banks’ stricter lending criteria, are making it increasingly difficult for anyone but cash buyers or those with higher levels of equity to buy property.
“It has also become much more difficult for developers to gain finance to build new homes, which is now leading to a slowdown in building activity in the market.
“The CoreLogic Buyer classification data shows the share of sales to all buyers requiring a mortgage has dropped and the share of sales to cash buyers remains steady.
Around the country
“Meanwhile, in the other main centres, values are now rising again in Hamilton & Tauranga after decreasing earlier in the year. A slowdown in value growth in the Wellington market is now more evident in the QV house price index data and Porirua, a previous hot spot, has seen values decrease over the past quarter.
“The Christchurch market is flat, with some areas seeing a slight decrease in values over the past quarter, while values continue to rise in a relatively buoyant Dunedin market.”
“Values in regional centres such as the Kaipara district north of Auckland, Hawke’s Bay, Nelson & the Tasman district are now seeing stronger value growth than the main centres as buyers look to the regions in search of more affordable homes.”
Ms Rush said values around the Auckland region continued to plateau, and values remaining steady over at 0.0% change over the last 3 months: “Values have continued to rise in some parts of the Auckland region but have decreased in others. Auckland City–Islands rose the most over the past quarter, with values rising 3.1% since April and 13.3% year on year. Rodney North also continued to increase more quickly than other parts of the city, up 2.2% over the past 3 months and 13.6% year on year. Values decreased in the Auckland City apartment market and also Auckland City east & south; as well as in Waitakere, Manukau north-west, Papakura & Franklin over the past 3 months.”
QV’s index figures around Auckland on the old council boundaries, and for the Auckland region, and around the country below that (old councils & main areas in bold; 2 areas, Kaipara & Auckland’s gulf islands, carry a warning for their low transaction levels).
The dollar figure is the average value for June. The first percentage is for the 3 months to June, the second is for the last 12 months and the third is the change since the 2007 peak:
Auckland region, $1,045,059, 0.0%, 7.2%, 91.2%
Rodney, $955,814, 1.6%, 11.9%, 63.0%
North, $984,933, 2.2%, 13.6%, 64.0%
Hibiscus Coast, $928,686, 0.9%, 10.2%, 58.1%
North Shore, $1,203,775, 0.2%, 6.0%, 86.5%
Coastal, $1,376,695, 0.1%, 6.2%, 82.7%
Onewa, $956,862, 0.4%, 4.8%, 92.9%
North Harbour, $1,190,626, 0.5%, 7.5%, 95.9%
Waitakere, $823,630, -0.6%, 6.8%, 94.2%
Auckland City, $1,228,005, -0.1%, 7.1%, 97.3%
Central, $1,073,116, 1.0%, 7.8%, 88.4%
East, $1,534,921, -0.5%, 7.1%, 92.6%
South, $1,103,498, 6.1%, -0.5%, 105.0%
Hauraki Gulf islands, $1,099,383, 3.1%, 13.3%, 72.0%
Manukau, $900,766, 0.0%, 7.0%, 96.8%
East, $1,169,679, 0.3%, 8.0%, 96.2%
Central, $684,184, 0.4%, 5.3%, 82.0%
North-west, $771,795, -0.5%, 6.6%, 108.9%
Papakura, $677,340, -1.8%, 8.1%, 88.3%
Franklin, $666,845, -0.1%, 9.0%, 68.6%
Northern border, down country & national:
Whangarei, $492,588, 4.3%, 19.6%, 24.3%
Kaipara, $520,852, 10.5%, 24.3%, 31.3%
Hamilton, $539,357, 1.2%, 9.5%, 49.2%
Tauranga, $687,364, 1.6%, 14.6%, 42.8%
Wellington region, $609,552, 2.4%, 18.0%, 33.8%
Christchurch, $496,378, -0.1%, 1.1%, 30.8%
Queenstown-Lakes, $1,071,995, 2.9%, 19.2%, 55.9%
Invercargill, $241,770, 1.9%, 9.2%, 9.6%
Total NZ, $639,051, 1.2%, 8.1%, 54.2%
Full index: QV house price index for June 2017
Attribution: QV statistics & release.