House values fall nearly 10pc

Photo / NZ Herald

House prices are continuing their downward slide in New Zealand with Auckland driving the slump.

Statistics from Quotable Value show a 9.3 per cent decline in national property values in the year to March - worse than the 8.9 per cent decline for the year to February.

That was in part due to an accelerated fall in the Auckland area, from 9.4 per cent in the year to February to 10.1 per cent in the year to March.

Valuations spokesman Blue Hancock said the Auckland region, particularly the central city and Manukau, was driving the national decline.

"Many other areas of the country are beginning to see property values flattening, particularly in provincial cities and across parts of the Wellington area," he said.

He added that while there were increased sales in the traditionally active months of February and March, there was also widespread uncertainty over what coming months would bring. Factors such as the effect of interest rates and declining job security on the property market remained unclear.

BNZ chief economist Tony Alexander said there was potential for the crisis to edge house prices even lower in the next few months.

He agreed there were positive signs with buyers wanting to take advantage of low fixed interest rates and owners expecting more realistic prices for their homes. But he said an increase in activity levels over the next few months would be a surprise.

"[Activity] is characterised by a lot of pent-up buyers meeting pent-up sellers - you get what could be a temporary boost in turnover in the real estate market as things clear.

"With the unemployment level rising it's going to keep things relatively suppressed."

Provincial centres have also felt the slide with Gisborne hardest hit, recording a drop in property values of 14.8 per cent compared with the same time last year.

In the Wellington area the decline was 8.7 per cent in the 12 months to March, an improvement from a 9.3 per cent decline in the February year. Christchurch worsened to a 9.7 per cent annual decline from a 9.1 per cent fall, while Dunedin improved to an 8.8 per cent fall from 9.4 per cent.

The only area showing positive growth was Southland at 2.4 per cent - although this trend was also heading downwards from 3.7 per cent last month.

The average New Zealand sale price for March fell slightly to $378,399 and has now declined 2.7 per cent in the past 12 months. The average sale price for Auckland fell from $502,193 to $495,892.


SIZE OF THE SLUMP

Movement in residential property values for the year to March.

DOWN
* Gisborne: 14.8 per cent
* Whangarei: 12.1 per cent
* Auckland: 10.1 per cent
* Hamilton: 9.3 per cent
* Tauranga: 8.7 per cent
* Wellington: 8.7 per cent
* Christchurch: 9.7 per cent
* Dunedin: 8.8 per cent

UP
* Southland: 2.4 per cent
(figures: Quotable Value New Zealand)