Nationwide value growth rallies as summer arrives for the housing
market
The latest monthly QV House Price Index shows nationwide residential property
values for November increased 6.4% over the past year which is a much faster
rate of increase than last month’s 3.9%. Values rose by 3.6% over the past three
months which is also much faster than last month when the market slowed to
0.9% and the nationwide average value is now $664,485 which is 60.4% above
the previous market peak of late 2007. When adjusted for inflation the
nationwide annual increase drops slightly to 4.4% and values are now 33.9%
above the 2007 peak.
Meanwhile, residential property value growth across the Auckland Region was
down 0.5% year on year which is the slowest annual rate since March 2011 but
increased over the past quarter by 0.4%. The average value for the Auckland
Region is slightly higher than last month at $1,045,741 and values are now on
average 91.4% higher than the previous peak of 2007. When adjusted for
inflation values dropped 2.4% over the past year and are 59.7% above the 2007
peak.

QV National Spokesperson Andrea Rush said, “It appears the spring/summer
upturn has finally arrived in the housing market.”
“Nationwide value growth has surged 3.6% over the past three months led by
stronger growth in Wellington, Dunedin and many other regional centres around
the country.”

 2

“Meanwhile, Auckland and Christchurch values also ticked up slightly over the
past three months bucking a downward trend seen over the past couple of
months.”
“However, values in Hamilton and Tauranga ticked down slightly and some areas
to the south and north of Auckland that have seen very strong growth in recent
years also saw values drop significantly including the Kaipara and Hauraki
Districts both down around 4.0% over the past quarter.”
“The easing in LVR restrictions in January and retail banks lending criteria is
likely to help improve activity and demand in housing the market as we move
through the summer months but it’s possible the usual slow-down over the
Christmas period may mean we don’t see the full impact of this until February
and March next year.”
Auckland
The Auckland market remains relatively flat with values holding or rising slightly
in some areas and dropping in others. The former Auckland City Council suburbs
also saw values rise up 1.6% year on year and 0.7% over the past three months.
Auckland City East rose well above average for the region, up 3.3% year on year
and 1.8% over the past three months, the average value there is now
$1,570,354. Values dropped 1.1% for North Shore City in the year to November
but rose 1.0% over the past three months; in a similar trend Waitakere values
were down 2.9% year on year but up 0.6% over the past quarter; Manukau was
down 1.6% year on year and 0.9% over the past three months; annual growth
was up in Franklin, Papakura and Rodney but Rodney saw values drop 1.1% over
the past three months.
QV Auckland Senior Consultant, James Steele said, “There’s been no significant
change to the market dynamic since the change of government, values are
holding in well located areas while they have dropped back in some areas
further out of the city centre.”
“An oversupply in some areas of Manukau is continuing to cause a decrease in
prices particularly in large new subdivisions which are above the median house
price while in parts of Waitakere values have also dropped back some suburbs.
However, other tightly held areas particularly in central Auckland are still doing
well and seeing values still rising.”
“A lack of pressure on property owners to sell, particularly given low interest
rates and solid rental levels, has meant that the large decrease in demand over
the past year instigated by LVR restrictions, has meant prices have remained
relatively flat.”
“Across the board we are still seeing a mixture of strong and weak sales where
buyers can be more selective under more ‘normal’ market conditions and where
a particular vendor has a strong desire to sell a buyer can usually be found, but
perhaps at a discount to the market peak.”

 3

“Some developers are seeing a gap in the market where they are able to pick up
a property at a discount and ‘add value’ through resource consents, taking
advantage of the favourable development opportunities presented by the
unitary plan.”
“However finance can be an issue in completion of such developments and often
they can be offloaded as a ‘ready to go’ project to a developer with the financial
capacity to see it through.”
“Over the next year, if the availability of finance improves and market demand
dictates we would expect to see a number of small-scale, high density infill
developments come to the market as more consents are approved.”
Hamilton
Hamilton City home values dropped slightly by 0.1% over the past three months
but were 1.4% higher than in November 2016. Values in the city are now 50.5%
higher than the previous peak of 2007. The average value in Hamilton is now
$544,050.
QV Hamilton Registered Valuer, Andrew Jaques said, “The market we observed
over the past two years has now subsided and a regular market is now evident.”
“The expected spring rally has not yet eventuated with slower listing and selling
numbers it appears measures to slow investor activity are having the desired
effect in the market.”
“The Reserve Bank’s Loan to value restrictions of 40.0% for investors coupled
with the big four Australian banks’ stricter lending criteria has led to a drop in
the number of investment properties being purchased, the recent easing of this
to 35.0% is unlikely to make much difference.”
“This has had a downstream effect of limited the number of new rental
properties being available for rentals.”
“Properties listed for sale by auction have increased on the last couple of
months and competing offers have become more the norm.”
Tauranga
Tauranga home values increased 3.53year on year but decreased 1.0% over the
past three months. Values there are now 42.7% higher than the previous peak of
2007. The average value in the city is $687,310. The Western Bay of Plenty
market continues to rise and values increased 5.9% year on year and 2.1% over
the past three months and the market is now 39.0% higher than the previous
peak of 2007. The average value in the district is now $626,120
QV Tauranga Registered Valuer, David Hume said, “The trend of a more
stabilized market continues in the sub $700,000 bracket, with many in the
industry describing it as a more normalised market.

 4

First home buyers are still finding it difficult to enter the market with, many
saying the HomeStart grant introduced in July 2016 at $400,000 for existing
properties and $450,000 for new being too low for the Tauranga region, with an
average house price of $688,000.
“There is still very strong demand in the Mount Maunganui area, with a 716
square metre vacant site at 98 Muricata selling recently for $1.65 million. The
site previously sold in May 2015 for $1.15 million in what was already
considered a hot market at the time.”
“Investors will be welcoming the news of a decrease in the LVR restrictions to
35% effective from January 2018. Although still a long way from historic limits at
20% but better than expected, with many forecasting 40% for all of 2018.”
“The Western Bay of Plenty has seen more continued growth throughout 2018,
with now a similar percentage increase as Tauranga from the previous peak in
2007.”
“Soaring Kiwifruit Orchard prices continue, with some prime established Gold
orchards now achieving over $1,000,000 per hectare.”
Wellington
Values across the whole Wellington Region rose 9.7% in the year to November
and 3.4% over the past quarter and values are now 36.3% higher than the
previous peak of 2007.
Wellington City increased by 9.9% year on year and 3.7% over the past three
months and the average value there is now $749,870. Wellington – North up the
most, increasing by 5.3% over the past three months alone.
Meanwhile values also continue to rise strongly in Upper Hutt up 14.1% year on
year and 4.0% over the past three months; value growth in Lower Hutt is slightly
slower, rising 13.5% year on year and 1.6% over the past quarter; while Porirua
is also up 13.0% year on year and 2.6% over the past quarter as is Kapiti Coast
up 16.0% year on year and 3.9% over the past three months.
QV Wellington Senior Consultant, David Cornford said, “Listing numbers have
increased over the past month providing buyers with a bit more choice however
supply is still tight and a sellers’ market prevails”
“Strong prices are being achieved and we are still seeing value growth in the
market however this is much more moderate compared to 2016”
“Market activity has picked up over November however it remains subdued
when compared to the same time last year”
“A number of property investors we have spoken with are evaluating their
property portfolio after the government’s announcements around minimum
rental standards, negative gearing and improved tenants’ rights.”

 5

“There is strong upwards pressure on rents throughout the region with demand
out stripping supply for rental properties.”
“Demand for new builds and vacant land remains strong, and first home buyers
continue to be active in the market”
Christchurch
Christchurch city values have decreased 1.5% year on year and but rose 0.2%
over the past three months. And values in the city are now 30.2% higher than
the previous peak of 2007. The average value is just shy of half a million dollars
and is sitting at $493,899. However values are continuing to rise in Waimakariri
up 2.3% year on year and 1.3% over the past three months. Selwyn values were
relatively flat rising 0.2% year on year and 0.1% over the past quarter.
QV Christchurch, Registered Valuer, Hamish Collins said, “First home buyers are
still active in the market but the usual spring/summer upturn hasn’t arrived at
usual levels this year.”
“The LVR restrictions and bank’s stricter lending criteria have definably created
a handbrake for investors and many are now selling poorly performing
properties in search of higher yielding ones in order to better meet banks
internal serviceability criteria.”
“It appears many who were waiting for new government to be confirmed before
entering the market are now waiting to see what new governments affect will be
on property market.”
“This appears to be causing some uncertainty in the market and some offers are
falling over during due diligence.”
“There are more auctions being passed in and being listed either by negotiation
or with asking prices and vendors are finding they have to adjust their price
expectations to what they may have asked six months or a year ago.”
“However, the high end market is still seeing good activity with record land sales
being achieved in Merivale and Fendalton and good quality homes in good areas
are always in demand.”
Dunedin
Dunedin residential property values are continuing to rise and have increased
13.0% in the year to November; 2.7% over the past three months and they are
now 34.9% higher than the previous peak of 2007. The average value in the city
is now $386,090.
QV Dunedin Property Consultant, Aidan Young said, “The first home buyers’
market remains competitive with multi-offer scenarios still common but there
are reports of some large variances in both offers and or conditions.”
“There is still strong demand for vacant land in Mosgiel as some of the larger
developments near completion.”

 6

“There is traditionally a flurry of activity before Christmas in the Dunedin market
as people look to get everything sorted before Christmas and this year is no
exception, the market is currently seeing plenty of activity.”
Nelson
Nelson residential property values continued on their steady upward trending
rising 13.0% year on year and 2.8% over the past three months and values are
now 44.4% higher than the previous peak of 2007. The average value in the city
is now $553,052. Meanwhile values in the Tasman District have also continued
to rise, up 13.6% year on year and 2.8% over the past three months. They are
37.8% higher than in the previous peak of 2007. The average value in the
Tasman district is now $553,187.
QV Nelson Registered Valuer Craig Russell said, “The residential market remains
strong in Nelson and Tasman for modern or well-maintained properties, and they
are selling quickly.”
“Properties that require tidying or updating tend to take longer to sell and
vendors need to be realistic about pricing.”
“Listings have continued to increase bringing more properties on the market.”
“There appears to be some trading happening in the market with the on-selling
of sections and newly built houses due to strong demand in those sectors.”
“We expect to see a busy first half of December as sales transactions are
finalised before the Christmas holiday close down period.”
Hawkes Bay
Values continue to rise across the Hawkes Bay region. Napier values rose 17.0%
year on year and 4.1% over the past three months. The average value in the
city is now $478,059 and values are now 40.5% above the previous peak of
2007. The Hastings market also continues rise up 17.6% year on year and 3.6%
over the past three months and the market is now 41.6% higher than 2007. The
average value there is now $441,307.
Provincial centres
In the North Island, some provincial areas that have seen very strong growth in
recent years to the South and North of Auckland have now seen values drop
back including the Kaipara District down 4.3% over the past three months; the
Hauraki District down 3.9% over the past three months; and Thames
Coromandel District down 2.9% over the same period. Meanwhile, values are
rising in many lower North Island areas that haven’t seen much growth since the
previous peak including Stratford, Rangitikei, Manuwatu and Palmerston North.
In the South Island regional centres, it’s also a mixed picture with some areas
still rising and others seeing values flat or dropping. The Mackenzie District
continues to see very strong growth with values in Tekapo now topping
$800,000; values have also jumped 7.8% over the past three months in
Southland and Invercargill is also up 4.6% over the same period. Meanwhile

 7

values are down over the past quarter in Ashburton, Kaikoura, Timaru, Clutha,
and on the West Coast Districts of Buller, Grey and Westland.
For further specific comment on local areas:
Auckland: James Steele 0211445952
Hamilton: Andrew Jaques 022 678
4159
Wellington: David Cornford 027 4206 396 Tauranga: David Hume 021 02416943
Christchurch: Hamish Collins 021 554421 Dunedin: Aidan Young 0274759097
Nelson: Craig Russell 0276 997780
Hawkes Bay: Rachael Walker
0276635777

 8

QV House Price Index
Time period: November 2017
Territorial authority

Auckland Region
Wellington Region
#

Main Urban Areas
Total New Zealand Nationwide
Far North

Average
current
value
1,04
5,741
6
21,289
7
79,380
6
64,698
420,783

12
month
change
%

3
month
change
%

Since 2007
market peak
change %

-0.5%

0.4%

91.4%

9.8%

2.6%

36.3%

3.8%

3.6%

69.7%

6.4%

3.6%

60.4%

14.7%

1.8%

5.7%

 9

Whangarei
Kaipara
Auckland - Rodney
Rodney - Hibiscus Coast
Rodney - North
#
A

#
A
#
A

#
A

#
A

#

#

Auckland - North Shore
North Shore - Coastal
North Shore - Onewa
North Shore - North Harbour
Auckland - Waitakere
Auckland - City
Auckland City
Auckland City
Auckland City
Auckland City

-

Central
East
South
Islands

Auckland - Manukau
Manukau - East
Manukau - Central
Manukau - North West
Auckland - Papakura
Auckland - Franklin
Thames Coromandel
Hauraki
Waikato
Matamata Piako
Hamilton
Hamilton - North East
Hamilton - Central & North West
Hamilton - South East
Hamilton - South West
Waipa
Otorohanga
South Waikato
Waitomo
Taupo
Western BOP
Tauranga
Rotorua
Whakatane

499,955
492,074
935,590
916,063
956,318

9.4%
13.0%
1.3%
2.4%
0.7%

0.5%
-4.3%
-1.1%
-1.6%
-0.6%

26.2%
24.0%
59.5%
56.0%
59.2%

1,212,617
1,380,575
974,440
1,190,355

-1.0%
-1.5%
-1.0%
0.2%

1.0%
0.5%
1.8%
0.9%

87.9%
83.2%
96.5%
95.9%

821,105

-2.9%

0.6%

93.7%

1,241,504
1,086,373
1,570,354
1,094,265
1,155,463

1.6%
3.0%
3.3%
-1.9%
12.2%

0.7%
0.2%
1.8%
-0.6%
3.5%

99.4%
90.8%
97.1%
103.3%
80.7%

891,394
1,144,569
687,444
770,341

-1.6%
-2.0%
-1.3%
-0.3%

-0.9%
-1.9%
0.7%
-0.3%

94.7%
92.0%
82.9%
108.5%

692,175
659,650
695,353
380,447
459,759
428,838
544,050
689,628
499,982
491,410
489,637
532,650
291,236
219,834
187,615
458,530
626,120
687,310
409,832
415,545

1.8%
1.8%
11.4%
7.9%
7.7%
11.4%
1.4%
0.7%
0.4%
0.5%
4.5%
13.1%
23.7%
21.5%
11.6%
12.9%
5.9%
3.3%
9.9%
13.7%

3.9%
0.5%
-2.9%
-3.9%
2.1%
-1.7%
-0.1%
0.4%
-0.8%
-0.7%
1.0%
2.6%
3.7%
3.3%
-4.8%
3.9%
2.1%
-1.0%
0.6%
3.0%

92.4%
66.8%
19.6%
36.4%
51.9%
47.0%
50.5%
53.4%
39.7%
40.6%
43.1%
61.8%
5.6%
34.7%
-11.6%
14.5%
39.0%
42.7%
39.6%
19.4%

 10

#

#

#
W
#
W
#
W
#
W

#

#

Kawerau
Opotiki
Gisborne
Wairoa
Hastings
Napier
Central Hawkes Bay
New Plymouth
Stratford
South Taranaki
Ruapehu
Whanganui
Rangitikei
Manawatu
Palmerston North
Tararua
Horowhenua
Kapiti Coast

192,821
21.6%
2.2%
276,447
11.8%
-4.5%
290,745
9.0%
-0.8%
N/A N/A
N/A
N/A
442,876
18.0%
4.0%
473,589
15.9%
3.1%
293,069
19.4%
2.1%
431,996
6.4%
1.3%
256,933
8.8%
5.3%
207,107
2.8%
0.6%
171,764
12.7%
1.5%
233,750
13.5%
1.6%
192,385
23.2%
4.1%
327,182
16.7%
6.3%
374,337
10.2%
3.2%
187,187
13.6%
6.6%
295,407
18.0%
3.4%
538,431
16.0%
3.9%

21.1%
-2.8%
-2.2%

Porirua

535,268

13.0%

2.6%

40.1%

Upper Hutt

470,235

14.1%

4.0%

33.8%

Hutt

524,285

13.5%

1.6%

33.6%

Wellington
Wellington - Central & South
Wellington - East
Wellington - North
Wellington - West
Masterton
Carterton
South Wairarapa
Tasman
Nelson
Marlborough
Kaikoura
Buller
Grey
Westland
Hurunui
Waimakariri
Christchurch
Christchurch - East

749,870
742,749
800,674
674,630
877,461
326,986
362,452
437,125
553,187
553,052
447,194
391,984
179,500
208,417
242,581
381,831
439,936
493,899
371,471

9.7%
8.5%
8.4%
11.9%
9.0%
21.5%
16.9%
25.0%
13.6%
13.0%
8.7%
-1.2%
-6.2%
0.3%
3.7%
2.5%
2.3%
-1.5%
-1.9%

3.4%
2.5%
0.7%
5.3%
4.8%
5.0%
3.7%
1.2%
2.8%
2.8%
1.6%
-0.6%
-3.6%
0.1%
-0.4%
2.7%
1.3%
0.2%
0.2%

40.8%
32.6%
38.9%
44.7%
44.5%
14.4%
30.1%
29.2%
37.8%
44.4%
14.7%
-9.2%
-12.6%
-14.7%
1.0%
22.2%
37.4%
30.2%
20.0%

42.1%
39.2%
10.6%
30.6%
17.5%
4.7%
-4.8%
4.3%
6.3%
28.7%
25.5%
6.1%
24.2%
40.6%

 11

Christchurch - Hills
660,947
-2.5%
-0.2%
19.5%
Christchurch - Central & North
585,656
-1.1%
1.0%
32.3%
Christchurch - Southwest
470,420
-0.9%
-0.6%
38.6%
Christchurch - Banks Peninsula
514,183
-0.7%
1.1%
7.0%
Selwyn
544,469
0.2%
0.1%
46.0%
Ashburton
345,615
-1.5%
-0.6%
23.5%
Timaru
350,033
5.3%
-1.0%
39.5%
MacKenzie
494,980
24.5%
7.3%
72.8%
Waimate
224,126
-0.5%
0.6%
18.8%
Waitaki
282,113
11.5%
-0.5%
23.5%
Central Otago
467,868
19.1%
2.1%
47.6%
Queenstown Lakes
1,105,213
10.5%
0.7%
60.7%
#
Dunedin
386,326
13.1%
2.8%
35.0%
Dunedin - Central & North
403,396
13.9%
2.9%
33.7%
Dunedin - Peninsular & Coastal
355,106
16.1%
9.4%
31.2%
Dunedin - South
368,133
13.2%
4.0%
28.9%
Dunedin - Taieri
397,863
11.3%
0.3%
35.4%
Clutha
200,210
7.7%
-0.6%
10.5%
Southland
270,290
19.9%
7.8%
17.4%
Gore
218,929
8.2%
2.4%
24.6%
#
Invercargill
251,884
8.0%
4.6%
14.2%
Notes on the above data:
1. The information included in the above table is based on the monthly property value index. This index is
calculated based on the sales data entered into CoreLogic's system in the previous 3 month period. For example,
information for the period ending June will be calculated based on sales entered between April 1 and June 30.
2. The average current value is the average (mean) value of all developed residential properties in the area based
on the latest index. It is not an average or median sales price, as both of those only measure what happens to
have sold in the period.
3. The percentage change over three months, twelve months and since the 2007 market peak are based on the
change in the property value index between that time and the current.
4. Any of the statistical data shown in italics are calculated based on a sample set of data that is less than the
recommended minimum. These results should be used with caution. Those showing N/A had too few sales to
generate an index