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Surge in investor activity sees home values soar across NZ


05 July 2016

Home values continue to rise across all parts of the Super City region with the former Manukau City suburbs seeing the strongest growth, up 20.4% since June 2015 and 5.3% over the past three months. The average value there is now $842,142.

The former Auckland City Council suburbs have increased by 14.3% over the past year and 4.9% over the past three months. The average value there is now $1,146,639. Waitakere City values rose on average by 15.0% since June 2015 and 4.3% over the past three months. The average value there is $771,270.  Values in the former North Shore City suburbs also increased by 15.0% on average year on year and were up 5.4% over the past three months. The average value there is now $1,135,868.

Papakura District values have increased by 22.6% in the year to June 2016 and were up by 2.2% over the past three months. Rodney District values rose by 16.9% over the past year and 2.9% in the past three months. Franklin values rose 17.9% over the past on year and 3.7% over the past three months.

QV homevalue Registered Valuer, James Wilson said, “Throughout June we’ve seen a continuation of the buoyant market conditions in the Auckland housing market.”

“There’s still a shortage of listings and well-presented properties are moving increasingly quickly, in some cases offers are made and accepted without the property reaching the wider market and we continue to see high levels of speculation in the market.”

“Investors appear to be heeding the recent warning by the Reserve Bank that further policy measures may be introduced later this year to curb investor activity in the housing market.”

“This appears to have led to a surge in investor activity with many seeking to acquire as many properties as possible under the current rules before any further restrictions are introduced.”

“This is particularly evident within the more affordable areas of West and South Auckland.”

“Based on past market behaviour, we anticipate this surge in activity to continue until such time as any announcement or strengthening of LVR’s is released by the Reserve Bank.”

“With the Proposed Auckland Unitary Plan (PAUP) implementation date drawing ever closer, land with greater development potential under the proposed plan is commanding an increasingly higher premium on the market.”

“The apartment market is also growing in popularity and experiencing strong value growth, in particular new builds or those purchased off plans.”

“We strongly recommend completing adequate due diligence before signing a contract to purchase an apartment off the plans, not only into the value level of the property, but also into the background of the developer, paying particular attention to the quality of their past developments, financial stability and scale of the company.”

“Apartments complexes already under construction, with anticipated completion dates of within six to eight months are the most sought after.”