QV House Price Index sees Hawke's Bay values increase

James Cooper of Harcourts Hawke's Bay says the QV figures reflect what his agents are experiencing in the market. Photo / File

The latest monthly QV House Price Index has seen house values continue to rise around the Hawke's Bay region.

Napier values rose 16.5 per cent year on year and 3.1 per cent over the past three months.

The average value in the city is now $488,236.

The Hastings market also continues to rise, up 13.8 per cent year on year and 2 per cent over the past three months, with the average value now $451,686.

Central Hawke's Bay has also seen values jump 22.1 per cent year on year and 8.1 per cent over the past three months.

QV national spokeswoman Andrea Rush said Hawke's Bay continued to see some of the strongest value growth in the North Island.

"Values continue to rise faster in Wellington, Dunedin and many regional centres than in Auckland."

She said low interest rates and the easing in the loan to value ratio (LVR) restrictions has seen many more first-home buyers active in areas where they can still afford to enter the market, while some investors also appear to be becoming more active now they need a slightly lower deposit.

Harcourts general manager James Cooper said "the latest QV House Price index confirms what our team is experiencing in the market".

He said demand for property is high with competition amongst buyers driving strong value growth.

"The buoyancy in the market is driven by a number of factors. Some of the key drivers are 'pull factors' which make Hawke's Bay an attractive place to purchase property. These include a strong local economy with low unemployment."

He noted that another pull factor is the lifestyle the region offers, making it an attractive place for people either looking to return home to raise a family, or buyers looking to re-locate from Auckland in their retirement.

QV Napier senior consultant Philippa Pearse said: "The Hawke's Bay market remains buoyant with strong value growth continuing.

"Investors are still active and include baby boomers looking for rental properties, or buying for family who can't afford to get in on their own, or ahead of family moving back into the area from other areas or overseas.

"There is also strong activity from first-home buyers and investors in the lower-valued areas of Napier and Hastings such as Akina, Mahora, Maraenui and Flaxmere, where you can still purchase homes under $400,000 - particularly from those looking to take advantage of the government grant and KiwiSaver.

"Central Hawke's Bay has seen value growth of more than 20 per cent over the past year mainly due to increased demand from lower-income families priced out of Napier and Hastings who now have to look further afield to more affordable homes."