New builds lid on house values

QV National Spokesperson Andrea Rush said the Auckland property market continued to dictate the nationwide rise. Photo / File

Property values continue to rise in Tauranga, but an influx of new housing is keeping an Auckland-level price spike at bay.

New figures from QV show a 5.8 per cent increase for houses in Tauranga last month compared to the same time last year, with an average selling price of $475,281.

Ross Stanway, chief executive of Eves and Bayleys Real Estate, said the increase was due to supply and demand.

"These figures continue a pattern we have seen over the last 12 to 18 months, which we would expect because we have seen an increase in buyers and a lower level of stock on the market."

"Buyers have to compete a bit more, which is pushing prices up."

He said it was not just locals looking to buy but many Aucklanders were interested in buying property in the area.

However, Mr Stanway said new subdivision projects should help contain price increases.

"There will be more new houses on the market, adding to the supply side."

Greg Purcell, franchise owner of Ray White Realty Focus in Mount Maunganui and Papamoa, said the increase in local values made it difficult for real estate agents to confidently tell clients a specific price they could expect a house to go for.

"There's certainly been some raised eyebrows at some of the prices houses have gone for. Especially at auction," he said.

"It's usually gone in excess of what the vendors have expected. You can't pre-empt this stuff."

Tauranga Harcourts managing director Simon Martin said the local market had been flat for a long time but it was nice to see it heading in the right direction now.

Mr Martin said there were a few surprises with the price some properties fetched at auction.

"We are achieving a premium result for the owners," he said.

Nationally, April property values increased 8.3 per cent over the past year and 2.6 per cent over the past three months.

This put values 22.4 per cent above the previous market peak of late 2007.

QV National Spokesperson Andrea Rush said the Auckland property market continued to dictate the nationwide rise.

"The steepening of the national index is indicative of the sharp rise in Auckland values over the past six months," she said.

"While Hamilton, Tauranga, Wellington and Christchurch have continued to show a steady, moderate rise in values, Auckland has continued its rapid rise, with many areas seeing double digit increases in values since November."

Loan-to-value ratio restrictions were also still having an effect on values, she said.

Auckland, where the average asking price rose by 3 per cent to a new high of $789,581, continued to be the main driver in the overall national increase.

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