Tauranga house values rise to $443k

Tauranga property values were up 3.6 per cent across the year to March.

Tauranga property values have increased 3.6 per cent in the last year to more than $443,000.

QV figures show residential property values increased 0.3 per cent in the last three months and 3.6 per cent across the year to March to an average value of $443,723.

Property values in the Western Bay of Plenty shot up 4.2 per cent since the start of the year but only rose 1.2 per cent across the whole year.

The average price of a property remained cheaper in the Western Bay at an average of $409,493.

Residential property values nationwide had increased 8.8 per cent during the past year but just 0.1 per cent since the start of the year to an average of $466,665.

Tauranga Realty Services chief executive Ross Stanway said the latest figures were consistent with the single figure increases Tauranga had been experiencing for the last two years.

"The latest ones indicate that is the trend that is continuing."

The figures showed the LVR restrictions had failed to curb rising house prices.

"It hasn't worked in the two areas it was designed to work in, Auckland and Christchurch.

"They are both still showing double digit increases. In the regions, where there has not been rampant price increases we're still maintaining the sort of price increases we were before the LVR."

QV national spokesperson Andrea Rush said the LVR restrictions and further interest rates hikes signalled by the Reserve Bank contributed to a levelling off in the growth of property values, particularly in Auckland.

"Home loan approvals nationwide are also down about 10 per cent on the same time last year. Overall sales volumes are similarly down and the amount of activity from first home buyers around the country is also well down on what it was prior to the LVR speed limits being applied in October," she said.

"The New Zealand price index is showing a slight tick downwards, which doesn't represent a nationwide drop in values, but rather a reflection of the impact of a drop in the Christchurch price index.

"We suspect this is due to the rating revaluation of Christchurch released in March, in which there was an increase in the overall rating value of the city. This probably explains the sharp downward movement of the Christchurch index this month, and next month the real trend will be clear."