Carterton values up, Masterton down

QuotableValue showed the February average value for a residential property in Masterton fell 0.6 per cent but rose 3.5 per cent in Carterton year on year.

Average property values have increased in Carterton but dropped in Masterton, fresh statistics show.

QuotableValue (QV) statistics for February show the average value for a residential property in Masterton is $237,430 while in Carterton it is $270,106 - a 0.6 per cent fall in Masterton but up 3.5 per cent in Carterton compared with February 2014.

Acting manager at Bayleys Masterton Tim Falloon said the statistics were a fair reflection of what was happening in both areas. "It has certainly been the case that values are up in Carterton and down in Masterton. Carterton is up in property value mostly because of the commuter distance to Wellington. A lot of people have relocated to Carterton and are commuting from there," he said.

"There is also quite a bit of available land for lifestyle blocks and residential blocks. The latest Census shows it is one of the fastest-growing towns in the country."

Mr Falloon said the trends had reversed in Wairarapa with Carterton property values now higher than in Masterton.

"Masterton seems to be starting to lift as well but the average house price certainly is higher in Carterton than in Masterton. It was the reverse until two or three years ago, the house prices in Masterton were higher.

"There is quite a bit of available land in the borough of Carterton which has been semi-farmed and now zoned residential, so it does make it quite easy to subdivide. However, there are also quite a few new developments happening in Masterton."

February was a particularly busy month in the property market, said Mr Falloon, with an increase in the number of inquiries. "In February in particular, there was quite a lift in prices and quite a bit of interest. Up until the election it was pretty quiet but post-election it seems to have sparked up. February seems to have been a pretty buoyant month," he said.

Nationwide residential property values for February 2015 rose 6.4 per cent over the past year and 3.1 per cent over the three months to February.

QV national spokeswoman Andrea Rush said more couples were choosing to build rather than buy because it was easier to borrow money for a new build.

"The new-build market across the country is in high demand, particularly amongst first home buyers, as the LVR requirement for a 20 per cent deposit does not apply to 'turn key' home and land packages, making it easier to secure finance to a buy a new build than an existing home," she said.

"The listings shortage appears to have eased a little as more homes have come on to the market during February. However, sales and mortgage approvals are also up since January."

Residential property values picked up in most provincial centres but declined in Southland, the West Coast and in a few parts of the North Island.

QV said areas close to Auckland had values rise faster than other provincial areas that was most likely due to the "Auckland effect" as buyers looked outside the city for more affordable property.