Hawke's Bay property values dip

Hastings' property values decreased 2.8 per cent and Napier's 0.5 per cent compared with the same time last year, property valuer Quotable Value's (QV) Residential Price Index for February shows.

QV's Hawke's Bay manager, Bevan Pickett, said the Bay residential market remained relatively subdued with values in Napier and Hastings stagnant throughout much of 2010.

"Sales activity continues to be at low levels as a cautionary tone remains," he said.

"While interest rates are low and banks are loosening their lending conditions, buyers are tentative, making careful and calculated decisions. The number of properties on the market appears to have increased recently but this is yet to flow through to sales activity."

The average February sales price was $322,987 for Hastings and $341,221 for Napier.

QV.co.nz research director Jonno Ingerson said regional declines were experienced throughout the country, but had been offset by gains in the main centres.

"Values for all New Zealand have levelled off in recent months, but this is mostly due to a rebound in values in the main centres," he said. "In contrast, values in the rural and provincial areas have generally continued to decline.

"Overall, the property market remains subdued with lower than normal numbers of listings and sales being the main signs of buyer and seller caution. However, there are pockets of the market that remain active, particularly in the main centres.

"There is variability in how values have changed over recent months, even within the main centres. Values across the Auckland area increased in the last month, particularly in central Auckland, with the rest of Auckland remaining more or less steady."

Values in wider Wellington had been steady, but increased in Hutt and Upper Hutt, were flat in Wellington City, and decreased in Porirua. In contrast, values in Hamilton and Tauranga continued to steadily decline.

"In Christchurch, the market took a while to start moving again after the September quake, but once it did there were some positive signs. Increased demand for undamaged houses saw prices lift by a few per cent in the subsequent months and in February values were 0.3 per cent above the same time last year."

The more widespread damage caused by the February quake would again hit sales.

QV's Residential Price Index is calculated using sales data from the three months leading up to the month being reported. It is not the same as the average sales price, which fluctuates in line with the mix of properties selling in upper or lower price brackets.