Auckland prices up 51.6 per cent

Auckland property values have risen by 51.6 per cent since 2007. Photo/Michael Craig.

Auckland property values have risen a massive 51.6 per cent since 2007, according to state-owned property valuation firm QV.co.nz.

It says property values in the region rose 16.1 per cent from May last year to May this year, the highest annual rise in 11 years, and 5.4 per cent over the past three months.

Adjusted for inflation, values are up 16 per cent over the past year and 30 per cent above the 2007 peak.

QV national spokesperson Andrea Rush says high net migration, relatively low interest rates and a constrained housing supply continued to fuel demand in the Auckland market.

"This demand is also now spreading to provincial centres nearer to Auckland with values up in Tauranga, Hamilton, Cambridge, Pokeno and towns in the Hauraki District," she said.

In the Super City, South Auckland posted the highest annual increase of 20.2 per cent with a 6.2 per cent rise over the past three months.

During the same period, East Auckland values were up by 5.5 per cent, Central Auckland rose 5.5 per cent, Waitakere values jumped 6.4 per cent and Manukau-North West values rose 5.2 per cent (and a whopping 19.2 per cent year on year).

Values in North Shore-Onewa were up 5.6 per cent over the past three months and 17.5 per cent year on year.

Rodney district home values increased at a slower rate than other areas of the region. Home values in Rodney-Hibiscus Coast have risen 2.2 per cent since March.

North Rodney home values were up 3.6 per cent over the past three months and 8.4 per cent year on year.

Registered valuer James Wilson said: "We have yet to experience the traditional winter slowdown of sales prices or volumes and activity in the Auckland market remains strong.

"There's still a shortage of listings and the number of days properties are taking to sell remains low. Auctions are continuing to produce good results, with high percentages of the properties exceeding expectations in terms of sales prices.

"New builds remain extremely popular with strong demand to secure sections within new developments.

"The relative shortage of new sections coming on to the market within such developments has increased the popularity of existing housing resulting in strong capital growth.

"Examples of the above are evident within the more established developments such as Stonefields where we have evidence of properties experiencing over 85 per cent capital growth over a five- to six-year timeframe."

He also says demand for property with development potential is strong, with large dwellings that have not traditionally been considered to offer viable subdivision potential now being snapped up.