Auckland house values dropped nearly 1 per cent in the latest quarter due to Government and Reserve Bank measures but are picked to shoot away again.
Figures from Quotable Value out at midday showed a 0.7 per cent decrease in Auckland values in the three months till the end of February, when the average value of a residential property stood at $925,656.
Andrea Rush, national spokesperson, attributed the turnaround to regulatory measures.
"The drop in values in the Auckland region is a continuation of the softening in the market seen late last year when measures to curb investors were introduced. However over the past couple of weeks, activity levels have started to pick up across the super city, so it's possible the drop in values may be short lived," she said.
James Wilson, QV Homevalue registered valuer, said many different factors were at play.
"Whilst activity levels remain low compared to the first nine months of 2015, the 'wait and see' approach that began late last year appears to be subsiding among investors and many now appear willing to re-enter the market," he said.
"Auction campaigns are still producing lower clearance rates than that of mid to late 2015, however post auction negotiations are proving successful in increasing numbers, attendance is also up and clearance rates are rising," Wilson said.
"The apartment market continues to strengthen, in particular modern, recently completed complexes or 'off plan' apartment purchases. Construction of new townhouses on brownfield sites is becoming increasingly popular as homeowners seek to stay in the same locality. This is achieved through either sub division of a parent site or the demolition of the existing dwelling on a site.
"Proximity to public transit networks is becoming an increasingly popular variable in a purchase decision," Wilson said.
Home values in main centres other than Auckland grew, and regions within commuting distance to Auckland are still benefiting from buyers looking for more affordable housing, Rush said in a statement.
Values in Kaipara, Waikato and Hauraki were up more than 5 per cent over the past three months.
Values in Hamilton rose 22 per cent in the year to February, a 2 percentage point increase on January, while Tauranga values were up 22.3 per cent year on year, pushing average value in the city to $565,547.
Wellington region values rose 6.1 per cent in the year, accelerating from a 5.9 per cent annual pace in January. QV's Wellington valuer Kerry Buckeridge said there was a noticeable lack of listings and rising prices in Wellington's home sales market, and a shortage of rental properties in the area, with about 25 per cent fewer listed in February than a year earlier.
"As a consequence, most landlords are putting rents up when renewing tenancies or re-letting properties," Buckeridge said.
Christchurch values were up an annual 2.5 per cent, and Dunedin values increased 6.5 per cent year on year.
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Auckland city central Average current value $952,291, down 0.1 per cent in the last three months.
Auckland city east Average current value $1.3 million, down 0.7 per cent in the last three months.
Auckland city south Average current value $986,470, down 0.8 per cent in the last three months.
North Shore coastal Average current value $1.2 million, down 1.8 per cent in the last three months.
Rodney Hibiscus Coast Average current value $809,752, up 2.5 per cent in the last three months.
Rodney north Average current value $842,525, up 3.4 per cent in the last three months.
Manukau east Average current value $1 million, down 0.6 per cent in the last three months.
Manukau central Average current value $613,843, down 0.2 per cent in the last three months.
Manukau north west Average current value $675,482, down 0.2 per cent in the last three months.
Waitakere Average current value $731,065, down 2.2 per cent in the last three months.
Hamilton Average current value $455,960, up 4.6 per cent in the last three months.
Tauranga City Average current value $565,547, up 7.4 per cent in the last three months.
Western Bay of Plenty Average current value $484,3400, up 6.9 per cent in the last three months.
Hastings Average current value $326,092, up 2.7 per cent in the last three months.
Napier Average current value $352,995, up 4.1 per cent in the last three months.
Wellington City Average current value $584,306, up 4.7 per cent in the last three months.
Wellington region Average current value $485,424, up 3.5 per cent in the last three months.
Nelson Average current value $439,741, up 3.7 per cent in the last three months.
Christchurch City Average current value $485,014, up 0.9 per cent in the last three months.
Dunedin Average current value $311,088, up 1.5 per cent in the last three months.
- with BusinessDesk