Quotable Value Ltd said in its monthly market analysis out today growth continued in regional towns & cities. In Auckland, the indices were down for 3 & 12 months in all but 2 pockets on the isthmus, where the central & southern suburbs showed a 0.4% gain over 3 months, and the Hauraki Gulf islands, where there was a 2.3% rise for the quarter but a 4.1% fall over 12 months, on the usual low turnover.
The index for Auckland slipped 0.5% and Rotorua’s slipped 0.7%, but the indices were otherwise marginally up elsewhere in the top of the North Island.
New Plymouth rose 1.6%, Hastings 2.2%, Palmerston North 2.9%, Dunedin 2% & Invercargill 3%.
QV Auckland value Hugh Robson observed:
- First-homebuyers were active in most suburbs
- Auction numbers were down
- Substantially refurbished homes are selling well
- Homes near rail, motorways or shopping centres are also selling well.
Mr Robson said owners & developers were realising the potential provided by the Auckland unitary plan, resulting in steady redevelopment in most suburbs: “In terms of end products, we are seeing a change from larger family homes on subdivided sites to higher density smaller terraced homes to apartments that are aimed at first-homebuyers.”
“Although the number of investors is down from the peak, there are still numerous investors out there looking & buying properties that require maintenance or renovation work. The recent lowering of interest rates appears to have caused a slight increase in sales activity in mid to late August.”
Competition for listings warms up
QV senior consultant Paul McCorry said real estate agents had reported increasing competition to list the limited number of properties that come to market in a week” “This has proved beneficial for vendors, with agents willing to negotiate their fee to secure a listing. In Auckland in particular, we are seeing an increasing number of properties listed with an asking price rather than an open-ended auction or tender process – a positive for purchasers.”
Mr McCorry said special mortgage rates from the major banks as low as 3.65% were good news for the growing number of first-homebuyers in the market, and for existing homeowners wanting to move house & able to use their equity to access these special rates.
“This is being borne out in the latest Corelogic buyer classification data which, despite a decline in recent years, still records ‘movers’ as the most active market group across New Zealand, closely followed by first-homebuyers & investors.”
He said a resurgence in investor activity in recent months, despite the introduction of the Healthy Homes Bill, was perhaps a signal of their longer-term approval of announcements earlier in the year that this government wouldn’t introduce a comprehensive capital gains tax: “Combined with the low cost of lending, this will have restored their confidence in the investment market. Arguably, the impact of the Healthy Homes Bill is more likely to place upward pressure on rents, impacting tenants more than landlords.”
A possible review of loan:value ratios would assist first-homebuyers more than investors, as first-homebuyers found raising the deposit more difficult than servicing the mortgage.
Below, the dollar figure is the average value for August. The first percentage is for the 3 months to August, the second is for the last 12 months (QV switches those around in its tables) and the third is the change since the 2007 peak. For Auckland, QV still works on the old council boundaries (councils marked in bold); Kaipara & the Hauraki Gulf Islands, as usual, have low counts:
Total NZ: $688,760,
The Auckland region: $1,025,193, -0.5%, -2.3%, 88.2%
Rodney: $933,788, -2.7%, -1.6%, 59.2%
North: $955,475, -2.7%, -1.2%, 59.1%
Hibiscus Coast: $913,907, -2.5%, -2.1%, 55.6%
North Shore: $1,172,939, -0.6%, -3.4%, 81.8%
Coastal: $1,350,881, -0.1%, -2.8%, 79.3%
Onewa: $938,054, -0.6%, -3.4%, 89.1%
North Harbour: $1,128,774, -1.5%, -4.6%, 85.8%
Waitakere: $812,456, -0.1%, -1.1%, 91.6%
Auckland City: $1,211,804, 0.1%, -2.3%, 94.7%
Central: $1,059,304, 0.4%, -0.6%, 86.0%
East: $1,528,249, -0.5%, -2.9%, 91.8%
South: $1,077,104, 0.4%, -2.7%, 100.1%
Islands: $1,135,833, 2.3%, -4.1%, 77.7%
Manukau: $884,902, -0.9%, -1.5%, 93.3%
East: $1,126,295, -0.8%, -1.9%, 89.0%
Central: $684,212, -1.0%, -2.2%, 82.0%
North-west: $774,305, -0.9%, -0.4%, 109.6%
Papakura: $695,577, -1.7%, -1.1%, 93.3%
Franklin: $670,874, -0.4%, 0.3%, 69.6%
On the borders & down country:
Kaipara: $549,054, 0.4%, 2.4%, 38.4%
Hamilton: $588,196, 0.5%,5.2%, 62.7%
Tauranga: $743,202, 0.2%, 5.4%, 54.4%
Wellington region: $713,798, 1.0%, 8.3%, 56.7%
Christchurch: $496,306, -0.5%, 0.4%, 30.8%
Queenstown-Lakes: $1,181,975, 0.0%, 1.8%, 71.9%
Dunedin: $465,457, 2.0%, 11.9%, 62.6%
Attribution: QV release.