Values continue to rise for Hawke's Bay homes

Properties on Napier Hill are in demand as the Bay continues to enjoy good residential value growth. Photo/File

Despite the residential values in the main centres falling, Hawke's Bay continued to perform well.

According to the latest QV property report Napier values rose 18.4 per cent year on year and 5.2 per cent in the last three months while Hastings rose 17.6 per cent year on year and 2.8 per cent during the last three months.

The average value in Napier was now $465,943 and values were now 36.9 per cent above the previous peak of 2007. The average value for Hastings was now $431,805 and the market was now 38.5 per cent higher than 2007.

Values in Central Hawkes Bay have also risen 1.7 per cent over the past three months and 23.9 per cent in the year since September 2016, as buyers looked further out of the main centres for more affordable property.

QV Hawkes Bay Property Consultant Rachael Walker said although values had increased from last year and in the last three months the market appeared to have had some heat lifted.

"Although values are remaining strong across most markets, we understand purchasers may be cautious over the coming weeks until the election result becomes clearer.

"Although both Napier and Hastings are experiencing reduced sales volumes, this is the norm over the colder months, and we expect to see the typical spring influx in listings."

Property Brokers regional director for Hawkes Bay Paul Whitaker said he felt the market would in time ease and drop off, however that could be in a few months or many months.

"I think there is still a bit left and what we do know is that properties that are well marketed and don't have a lot of competition are achieving uplifting results that are still exceptional."

Mr Whitaker said the success in the market came down to the competition for the property and where the demand lay.

"For example if you have one good character house on the hill it will be a cracker, but if there are eight it will be a fizzer."

With regards to the election Mr Whitaker felt the market was "teetering" and he said the market would have more confidence one way than the other.

Meanwhile nationwide residential property values for September increased 4.3 per cent over the past year and values rose 1.1 per cent over the past three months. The nationwide average value was now $646,378 which was 56.0 per cent above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 2.5 per cent and values are now 30.2 per cent above the 2007 peak.