Property editor of the NZ Herald

Where do Auckland house values go from here?

This renovated Hobsonville bungalow sold for $1.6 million last June, but attracted no bids at auction this week.
This renovated Hobsonville bungalow sold for $1.6 million last June, but attracted no bids at auction this week.

Auckland house value data for last month could show the city is still in the "push-pause late-holiday" season mode.

At midday tomorrow, Quotable Value releases its house price index data for last month and the latest three-month period.

That could show a somewhat less frenetic pace of activity due to it capturing the tail end of the holiday period.

Yet it could also show renewed interest in the market and an increase in values, particularly at the extremely popular lower end of the market.

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Townhouses and apartments have been popular lately.

QV last released data on the sector on February 9, showing a somewhat patchy picture.

Andrea Rush, national spokesperson, said that for the first time in more than a year, January values had decreased in the past month in the former Auckland City Council suburbs, on the North Shore, in Manukau and Waitakere.

Yet home values continued to rise in outer fringe Auckland areas of Rodney, Papakura and Franklin, as well as in most other parts of the New Zealand.

QV Homevalue registered valuer, James Wilson said January saw a continuation of softening market conditions prevalent in the latter months of last year, characterised by decreased activity and an easing of some Auckland sub-markets, particularly investor housing stock.

The lower end of the market was still rocketing ahead.

"Demand for recently constructed dwellings or purchases off-the-plan is still extremely strong particularly for developments which offer smaller layouts such as attached townhouses or apartments as they offer more affordable options for buyers," Wilson said last month.

"The construction of minor dwellings on sections with an existing home is also on the rise and is a popular method for investors to improve rental returns across their portfolios.

Buyers must ensure any such additions are consented and be wary of making purchase decisions based on unsustainable or illegal sources of income, such as un-consented construction or flat conversions," Wilson said.

- NZ Herald

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