Ups and downs in property market

Figures in the Far North have slumped. Photo/Thinkstock

Property values in Whangarei and Kaipara continue to climb but the Far North has again slumped, new figures reveal.

Kaipara values led the way with a 7.4 per cent increase in the year to January to an average value of $325,117, followed by Whangarei which recorded a 2.7 per cent rise to $335,273 according to state valuer Quotable Value.

But the Far North again suffered a slump, with average values dropping 3.9 per cent to $300,444. Across the region, values remain well down on the 2007 market peak.

Nationwide, values increased 9.6 per cent over the past 12 months to $467,499, and are up 12.8 per cent on the 2007 market peak. QV Whangarei valuer Jeff Robinson said property values had been slowly increasing in Whangarei and the number of properties on the market had grown.

"With the summer months being the best time to sell coastal properties there have been more properties on the market in the seaside areas.

"Whilst we have seen a slight increase in values compared to last year, supply is still outstripping demand which is keeping the increases moderate."

In Mangawhai, demand had increased, in particular for improved properties, but there was still an oversupply of vacant sections, he said.

In the Far North, values were still in decline apart from Kerikeri which was seeing a slight increase in market activity and values.

QV research director Jonno Ingerson said growth had slowed in the first month of the year.

"The January index shows that nationwide values increased 0.3 per cent compared to December, while a month earlier the increase was 1.3 per cent. So while values are still increasing the rate of this increase has slowed considerably.

"This pattern of slowing value increases is evident across Auckland also. Most of the other main centres have also slowed considerably to the point where values were either flat or slightly decreased in the past month."

Although it was the first month values appeared to have slowed, the timing was aligned with the effects of the Reserve Bank mortgage lending restrictions, brought in last October.

"These 'speed limits' have reduced the number of first home buyers active in the market, but perhaps more importantly have led to increased caution amongst buyers. This caution is offsetting any potential upward pressure on prices due to a lack of listings in many areas."