New Zealand house values fell in June in a slower market that Quotable Value says reflects restrictions placed on buyers by the central bank and government.
National residential property values fell 0.3 percent in the three months through June and the nationwide average now sits at $675,680, QV said. The annual increase was 5.7 percent or 4.6 percent adjusted for inflation, QV said. The Auckland region did marginally better in the quarter, with property values falling 0.2 percent to an average $1.05 million in the past quarter although they are only up 0.8 percent year-on-year, QV said.
"The data very much confirms what we’re seeing, with values continuing to moderate or drop after a sustained period of growth leading into winter," QV general manager David Nagel said in the embargoed statement. He said after a period of growth in property values sellers "can sometimes have an inflated, even unrealistic, view of the value of their property" and this was contributing to slower average time to sell.
"It’s a buyer’s market. The Reserve Bank's LVR restrictions, as well as new government regulations, have reduced investor demand," Nagel said. "This has had the effect of reducing competition, giving buyers more time to do their due diligence before purchasing. As a result, regions such as Auckland are seeing an increasing number of sales through negotiation as opposed to auction as vendors show more flexibility in order to sell their property in a less buoyant market."
He expects values to "remain fairly constant or steadily grow across most of New Zealand throughout winter."
Around the country, Hamilton city home values rose 0.2 percent over the past three months and were up 3.2 percent in the year to June, to sit at an average $556,426.
Tauranga values fell 0.9 percent in the past three months and rose 1.9 percent year on year to an average value of $700.305. Napier values rose 3 percent in the quarter and 15.7 percent on the year to an average value of $512,519, while Hastings values fell 0.3 percent in the past three months for a year-on-year gain of 8.5 percent to an average value of $455,678. Across the Wellington region, values fell 0.8 percent in the quarter and gained 4.8 percent in the year to an average value of $639,112.
In the South Island, Nelson residential property values fell 0.5 percent in the quarter but rose 5.9 percent in the year to an average of $563,287. Christchurch city values rose 0.1 percent in the latest three months but fell 0.3 percent year on year to $494,707 and in Dunedin, values rose 3 percent over the quarter and jumped 9.2 percent in the year to an average $409,898.