Auckland house values are up by 43.8 per cent on the last boom in 2007 - but a valuer is warning that off-the-plan buyers are not always recovering their money if they sell too soon.
Quotable Value yesterday released data showing all Auckland values rose 13 per cent in the last year to an average of $786,106.
It also highlighted that areas in the south of the city were seeing some of the most rapid value rises.
Manukau and Papakura values rose 4.6 per cent and 5.3 per cent respectively in the last three months (to averages of $652,233 and $474,949) which James Wilson, QV homevalue Auckland valuer, said was "possibly driven by the popularity of the new developments in the area".
Values in Manukau East (Bucklands Beach, Pakuranga, Highland Park, Botany Downs, Burswood, Whitford, Beachlands, Maraetai, Clevedon, Dannemora, Meadowlands and Howick) rose 4.7 per cent in the last three months, to an average of $855,612.
Values in Manukau northwest (Mangere Bridge, Mangere, Ascot Park, Peninsula Park and Papatoetoe) were up 4.9 per cent in those three months to an average of $548,107.
New housing areas Addison, Stonefields and Flat Bush were also seeing huge value rises, up to 10 per cent in just three months, Mr Wilson said. "In some of those more established new developments, two-tier markets are starting to appear where buyers are paying a premium for new homes off the plans. These buyers are then often unable to sell for the same value levels when they attempt to sell the properties within a short time frame."
Within a short period like six months, they might not get their money back.
"The second buyers might not pay the same amount as the first if there's a lot of new stock in that housing scheme as they can readily buy a brand new place, so why wouldn't they? It's a bit like the new car market," he said.
Loan to value restrictions were also influential because people needed less deposit for a new house than to buy second-hand, he said.
Andrea Rush, QV national spokeswoman, said Auckland had "seemingly insatiable demand" but values in Hamilton, Tauranga, Wellington, Christchurch and Dunedin were showing only moderate rises.
Harcourts released figures showing new listings fell 7.4 per cent last month compared with last February.
New dwelling consents were lagging behind population growth and chief executive Hayden Duncan called for more to be done to boost affordable housing in Auckland.
Couple confident of resilience in apartment market
The couple, who live in a four-bedroom family home in Ellerslie with their two young sons, have two central Auckland apartments.
They bought the first, a 23sqm unit at the Quadrant, a year ago, and their second, a 45sqm place in the Heritage Tower, in January.
They see benefits in having these holdings because of the city's rapid population growth and fast-rising prices.
"Auckland apartments are still very affordable," Mrs Gray said. They get "a massive response" when the apartments are advertised for rent.
"We get short-term tenants. Whenever they're vacant, we get 20 responses within a week."
She said she had strong criteria before buying, examining location, body corporate fees and the size of a unit. The latest QV data doesn't surprise her.
"It's just carrying on the trend we've seen previously. There doesn't seem to be any sign of the market slowing. Price rises make us feel more confident in investing in the market in Auckland."
Latest QV housing data
• Auckland values up 5% in past three months
• Auckland values up 13% on last year
• Auckland values up 43.8% since 2007
• New Zealand values up 6.4 per cent