Auckland values have increased 14.6 per cent year-on-year and are now 48.1 per cent above their 2007 peak. Photo Chris Loufte.
Auckland values have increased 14.6 per cent year-on-year and are now 48.1 per cent above their 2007 peak. Photo Chris Loufte.
QV's latest figures show the average property value for the Auckland region has now broken into the $800,000s, fuelled by value increases in the 'super 10' suburbs of Auckland City-South.
The Residential Price Movement Index for April showed values for the Auckland market increased 14.6 per cent year-on-year, 4.3 percent over the past three months and 48.1 per cent since the previous market peak of late 2007.
When adjusted for inflation, Auckland values are 14.5 per cent over the past year and are 27 per cent above the 2007 peak.
QV spokeswoman Andrea Rush said the steepening of the national index was indicative of the sharp rise in Auckland values have seen over the past six months.
Auckland City home values were led by the 'super ten' suburbs which comprise Auckland City-South; Blockhouse Bay, One Tree Hill, Sandringham, Mt Albert, Wesley, Three Kings, Mt Roskill, Otahuhu, Onehunga and Mt Wellington.
Overall, the super ten values are up 5.5 per cent over the past three months and 19.2 per cent year-on-year.
Values in the super ten rose 13.8 per cent since November alone, showing how much the market has moved just in the past six months, Rush said.
Looking at the rest of the city, Auckland City-East values were up 3.3 per cent since February and 15.5 per cent year-on-year. Auckland City-Central values were also up, by 5 per cent over the last three months and 11.2 per cent year-on-year.
The number of sales in Auckland in March reached levels not seen since 2007 and values have been rising quickly across the city, Rush said.
"With net migration at a record 54,000 and still rising and 50 per cent of migrants moving to Auckland home values in the Super City are likely to remain high and keep rising during 2015 as supply continues to outstrip demand," she said.
Waitakere City values also continued to grow and were now up 16.4 per cent since April 2014 and 51 per cent higher than during the peak of 2007.
In Manukau, Manukau-East values rose 5.3m per cent over the past three months, and 13.6 per cent year on year; Manukau-North West values also rose by 4.7 per cent over the past three months and were up 17.6 per cent year-on-year; while Manukau-Central values 4.9 per cent since February and 13.6 per cent year-on-year.
Buyers are wary of being priced out by further increases in prices so as a result seem to be willing to pay premiums to secure properties.
On the North Shore, values in North Shore-Onewa values rose 4.3 per cent over the past three months and the highest year-on-year increase over the bridge of 16.3 per cent; North Shore-Coastal values rose 4.3 per cent over the past three months and 13 per cent year on year; while North Shore-North Harbour values also rose 4 per cent since January and 12.1 per cent year-on-year.
QV homevalue Auckland spokesman James Wilson said buyers were wary of being priced out by further increases and were paying premiums to secure properties now.
Investors were still active in the market, capitalising on low interest rates, high equity across their portfolios and rapidly rising prices, he said.
"Demand for new builds is still very high and is being fuelled by the LVR exemption for new construction."
Looking at the rest of the country, Hamilton, Tauranga, Wellington and Christchurch continued to show a steady, moderate rise in values, Rush said.
"Dunedin is the only main centre where values decreased slightly since February and the housing market there along with many other provincial towns around the country is showing flat or decreasing home values as the LVR restrictions continue to make it difficult for first home buyers to enter the market."
