House values hit $600k across NZ - Auckland nears $1m

Average property values across New Zealand are now more than $600,000, with Auckland nearing $1m. Photo / Michael Craig

New Zealand house values have just exceeded $600,000 for the first time while Auckland values climbed towards $1 million.

Yet Hamilton values are rising the fastest of all, up more than a third in the past year.

Quotable Value data just out shows the average national property value standing at $602,434, while Auckland average values are $992,207.

Andrea Rush, QV national spokesperson, noted the significance of the numbers.

"The latest QV House Price index shows values continue to rise rapidly in many parts of New Zealand buoyed by low interest rates, strong investor activity and high net migration with the average value nationwide now topping $600,000," she said.

"Hamilton, Queenstown Lakes and Tauranga have seen some of the highest growth with Hamilton values rising 31.5 per cent since July 2015, nearly twice as fast as Auckland which rose 16 per cent over the same period. The Auckland market however has continued to accelerate up more than 5 per cent over the past three months and it now has an average value just shy of $1 million dollars," she noted.

New Quotable Value data out at noon today:
• National NZ average home value now $602,434
• Auckland average home value $992,207
• Hamilton values up fastest: 31.5% since last July
• Christchurch values only up 3.5% annually

Hamilton value growth had been "massive" and Stephen Hare, QV homevalue Hamilton valuer, said supply of places for sale had not kept pace with demand.

"We are continuing to see strong demand for properties in the lower value price bracket $400,000 to $600,000 and increasingly strong demand in the high value bracket suburbs such as Flagstaff, Rototuna and Huntington.

"It's becoming a growing occurrence in this strong market for properties to go to auction compared to other means - asking price - with vendors seeking higher values through this approach.

"Hamilton home buyers and investors continue to purchase in nearby towns within commuting distance to the city, which is driving values up in places such as Te Awamutu, Morrinsville and Ngaruawahia which are becoming more appealing to first home buyers seeking affordability and close proximity to Hamilton.

Tauranga values rose 25.7 per cent year on year and 6.6 per cent in the past three months, QV data showed.

But in Christchurch, values only rose 3.5 per cent year on year. Damian Kennedy of QV in Christchurch said rents and prices were affected by supply.

"There are still a lot of new homes being built and these appear to still be selling. However we are seeing some asking price reductions. Market rents have been on the decline for some time now across the city now that demand for rentals has slowed with fewer workers here for the rebuild and fewer people having to rent while their damaged homes are repaired," he said.