Real Estate Under The Spotlight

QV's December statistics report a 10.0% growth in national property values over the past year (calculated over the three months ending December 2007 in comparison to the same period last year). The growth rate eased from 11.4% reported in November with the average New Zealand sale price also easing to $388,253 this month (from $393,198 last month).

"Looking back across 2007, the growth in property values started the year at 8.8% per annum in January, rising steadily to a high of 13.3% in August. The cost of borrowing and slowing immigration has softened demand since, with our figures showing a drop in each of the last four months to end the year at an increase in property values of 10.0%. There is nothing in our statistics to suggest that this trend will not continue into 2008, with the Spring market having failed to provide the usual resurgence" said QV spokesperson Blue Hancock.

"Our valuers report steady levels of activity in many areas of the country but a definite slow down in others. Prospective purchasers are definitely being more cautious" said Mr Hancock.

In the main urban centres, Hamilton recorded the largest decrease in annual property value growth, slowing to 11.8% from 14.5% last month. Auckland City, Christchurch and Dunedin's growth rates all dipped by levels of between 1.5% and 1.7%, with growth easing to 9.1%, 8.2%, and 6.9% respectively. Growth eased slightly in Wellington from 11.6% to 11.4% and Tauranga decreased from 5.4% to 5.0%.

Most of the provincial centres also recorded easing growth rates with noticeable decreases in Invercargill 29.4% (last month 34.8%), Gisborne 7.7% (last month 14.4%), and Wanganui 8.2% (last month 13.5%). Growth in property values slowed to 12.7% in Queenstown and remained at 11.5% in Rotorua. Easing annual property value growth was also reported in Whangarei 10.7%, New Plymouth 3.4%, Palmerston North 8.4%, and Nelson 10.8%. Conversely, Napier's growth rate increased to 7.7% this month (from 7.1% last month).