31 October 2008

More people than ever are renting homes and they’re doing so for longer periods at different stages of their lives, says Jeff Montgomery of the Department of Building & Housing (DBH).
For this reason, there will always be a need in the private sector for private landlords, he says. “There will continue to be demand for rental properties. Demand has increased and no-one is suggesting it won’t continue.”

The biggest growth in rental properties has come, not from the public sector, but “from Ma and Pa investors, those who own one or two or three properties”.

Montgomery says these private investors play an important role in offering homes. And there’s a need to put effort into ensuring landlords, especially accidental landlords, brought about by the current economic circumstances, understand the obligations that tenancy brings.

However, Montgomery says the increase in demand for rentals is less about the economic environment than part of an international trend.

“For various reasons, there has been an increase over a number of years in the proportion of people renting. Around one in three live in a rented home.” This has been gradually increasing for the last 10 years due to:

• desire for more flexible arrangements for work
• the affordability issue – it takes longer to be able to afford to buy
• immigration – people come to New Zealand and move into a rental environment then later move into their own homes

Montgomery says people are renting for longer and more people are renting in their 30s, 40s and 50s. He says, when many people think of renters they have [student-like] flats in mind. “But the growth has been in ‘older’ people choosing to rent. They may own a home but they’re just not living in it. There’s a need for quality rental properties for these people.”

29 September 2008

Icon Group has recently launched a tenancy check service to help landlords vet prospective tenants for both residential and commercial properties.

Icon is one of New Zealands largest privately owned security companies providing a broad range of services including staff vetting & tenant checks.

Staff vetting manager Debbie Schwarz says that for a fee well below the average of one week’s rental on a residential property, Icon will conduct the following checks, and if required will provide a pre-approved application form for landlords to use.

Included in the service are; reference checks with previous landlords or character referees, credit history check, Tenancy Tribunal order checks and a check of the Tenancy Information New Zealand database.

“All checks are fully compliant with New Zealand legislative requirements and will certainly give landlords peace of mind that they are making the right choice with tenants.”

“Whilst property rental is relatively low risk, the consequences of a bad tenant who damages the property or defaults on their rental can be considerable,” she says.

There are professional ‘bad’ tenants who are very good at targeting private landlords. They specifically avoid renting property through real estate agents or property managers knowing that they have access to information that can severely limit their chances of ever renting again, she says.

Source: NZ Herald

24 August, 2008 

International buyers are snatching up New Zealand property as the dollar drops, banks lower interest rates and the market reaches realistic prices.

Alistair Helm of realestate.co.nz says the surge is encouraging for sellers and indicates an “interesting time” in the property market.

Last year 22 per cent of realestate.co.nz’s browsers were from outside New Zealand. This figure crept up to 25 per cent around April and May this year and is now up to 27 per cent, Helm says.

Most of the interested buyers are from Britain, Australia and the United States.

Auckland real estate agent Ross Brader says the properties he listed online started to attract record numbers of international browsers on August 10, when the Kiwi dollar dropped to the lowest level in 11 months.

A three-bedroom Pt Chevalier home going for $799,000 listed on the realestate.co.nz website last week attracted about 2000 views in eight days and half of these were from overseas, including 184 browsers from Britain, 172 from the US and 99 from Australia. “It’s been quite surprising,” Brader says.

His office covers the Western suburbs of Pt Chevalier, Westmere and Grey Lynn, and overseas buyers tell Brader they are attracted to the area’s coastal lifestyle, good amenities and proximity to the city.

Brader says buyers from Britain tell him they are moving to New Zealand for a “better quality of life”.

The weakening British housing market and the current exchange rate have also prompted the decision.

Boutique agent Michael Boulgaris says prices for top-end property in New Zealand are now at realistic levels and this has sparked the surge in international interest.

“Because the American economy is so tough at the moment a lot of people - buyers and investors - are focusing on New Zealand,” Boulgaris says. “The expats are definitely coming back. It is in their best interests to make a move now.”

Over the past month he has seen an offer just short of $5 million from an expat, another interested buyer from Dubai offering $1m for a property he had not yet visited and another $2m offer from a Singapore buyer who had still to see the site.

The number of website browsers is increasing month on month but there has been a notable surge as the New Zealand exchange rate becomes more attractive to overseas buyers, Boulgaris says.

Helm says that overseas buyers are in a good negotiating position because there is a surplus of supply.

“If our dollar begins to drop as it is, then our property begins to look more attractive.”

Median prices may have dropped in Auckland but remain stable across most of the rest of New Zealand. Helm says it seems overseas buyers are motivated by what they want to buy into and for the lifestyle change, rather than what the market is doing.

“They’re not buying a stock or a share, they are buying it for what it is,” he says.

Bayleys real estate held an immigration expo in Johannesburg, South Africa, last month and has since received more than 70 direct inquiries about buying residential and commercial properties in New Zealand.

Managing director Mike Bayley says the interested buyers made comments about feeling comfortable with the New Zealand way of life and culture, particularly the rugby, barbecues and beach lifestyle, and were attracted to the safety of New Zealand’s cities compared to Johannesburg and Cape Town.

“We have also seen a resurgence in commercial property inquiries out of Southeast Asia - particularly Singapore and Hong Kong,” says Bayley.

In July and August, Bayleys held two New Zealand property exhibitions in Singapore to promote residential apartment investments.

Bayley says: “We have seen a resurgence in interest in commercial property out of Asia, which has for the most part been absent for the past six to eight years. Reasons for this include a weakening New Zealand currency, the fact New Zealand is seen as a relatively safe haven among global economic and political uncertainty, our attractive legal and business environment, and an absence of capital gains tax and stamp duty.”

The company is targeting two immigration expos in England in October.

Bayley says the company has a database of about 7000 people who have registered an interest in immigrating to New Zealand, mostly generated from previous immigration expos in Britain.

‘Ecstatic’ to come back

Mother-of-two Bronwyn Carr moved her family to New Zealand from America in June.

Her children are now 9 and 4 and Carr decided it was the right time to move them out of the US, where she had lived for seven years, to be closer to their cousins.

New Zealand’s sliding property market wasn’t a driving factor in the move but it did work in the family’s favour.

“We knew the New Zealand market had been very high and it was dropping like a stone.”

Carr and her Australian husband were looking for a family home to settle in for the next 25 years and they had a set budget.

But Carr says she initially struggled to find homes she liked as only vendors who had to sell had listed their properties, and speculative buyers had chosen to hold on to their properties through the slump.

In the end, Carr did find what she was looking for and put in an offer which was at the top of her range, but less than what the owners had paid two years ago.

Carr says after 13 years abroad she is “ecstatic” to be back and pleased to have bought into the market when she did.

Source: NZ Herald 

16 April 2008

Auckland’s skyline is set to be transformed as developers buck gloomy property forecasts with plans for at least five skyscrapers in the next three years.

The 232m Elliot Tower planned for the corner of Victoria and Albert streets will become the city’s second-tallest building, while the 144m Saffron Apartments at 51-53 Albert St will be the fifth.

They are scheduled to be completed before the 2011 Rugby World Cup, although both projects have run into opposition.

The other schemes aiming for the sky are the proposed 120m, 39-storey Antipodean Apartments on top of the St James Theatre, a 26-storey hotel - again in Albert St - and a 114m residential/retail tower in Shortland St.

The Elliot Tower proposal is the most advanced, having secured planning permission last October.

Its height would be surpassed only by the Sky Tower but SkyCity has delayed the project by appealing to the Environment Court.

SkyCity claims the building would interfere with communications equipment on the Sky Tower.

The Saffron Apartments project has also attracted criticism, with Auckland City Council receiving 15 submissions on the resource consent application - 14 against the plan.

Objectors include the nearby St Patrick’s Cathedral, the Bishop of Auckland and the Auckland Regional Council, mainly worried about the effects of the tower on the cathedral, St Patrick’s Square and nearby heritage buildings.

The construction boom comes at a time when almost all property pundits are predicting dire times ahead.

But the developers appear unfazed, partly because of the time it takes to plan and build the skyscrapers.

Elliot Tower project manager Sean Park said developers were not put off by swings in the market.

“Markets go up and down in five-year cycles,” he said. “We think it’s currently at the bottom. The rental market is picking up and there is quite a lot of demand for apartments.”

Park said the market could have recovered by the time the tower was built.

Asked if he thought all the skyscraper projects could succeed, he said it depended on how innovative the buildings were.

“Their chances are unlikely if they just offer the same kinds of apartment buildings,” said Park. “If you can attract worldwide clients then you have a better chance.”

Paul Doole, the developer behind the Antipodean Apartments, said the project had been on the drawing board for five years. “You’re often planning a project in the middle of a downturn.

“The market has taken a hit lately, but in two years’ time I think it would be completely different.”

Doole said the planning and resource consent process had become more complex and time-consuming, but it did not appear to put people off dreaming about skyscrapers.

“It’s a question of supply and demand. We have been in a bit of an oversupply situation, but I can see that coming to an end.”

Doole laughed off any suggestion that ego or competitiveness was involved in erecting new skyscrapers.

“It’s just building the damn things,” he said.

Mayor of Auckland John Banks said high-rise proposals now had to “jump higher hurdles and go through tighter hoops” than before to get council approval.

“For these developments to proceed, they need to be of an international standard and quality, otherwise they’re not going to go ahead.”

Banks singled out the Metropolis Apartments and the Vero Centre as examples of good architecture, but described much of the development in the CBD, particularly around Hobson St, as “post-Beirut reconstruction”.

“Auckland has witnessed some of the most shocking post-war urban development of any city in the OECD,” he said. “Most of the buildings in Queen St which have been destroyed have been replaced with buildings which are a disgrace.”

Banks said he believed the latest high-rise plans had probably been made before the latest downturn.

“Will they proceed?” he asked. “Not sure. Priorities are being re-ordered. I wouldn’t be at all surprised if they were delayed.”

Source: NZ Herald 

08 March 2008

There have been relatively stable vacancies recorded in the Auckland CBD in the past few years.

During the past six months, there has been increased interest and absorption of B-grade space in the Auckland CBD, says Bayleys Research in its newly released overview of the office market.

Although some tenants have chosen to lease B-grade space due to the lower cost, many tenants have had little choice but to continue leasing existing B-grade premises due to a lack of better quality options and time constraints, says Bayleys Research manager Gerald Rundle.

The latest survey shows that Auckland’s CBD office market experienced positive net absorption of around 17,000sq m during 2007.

This was a strong performance compared with 2006, when a net absorption deficit of 24,000sq m was recorded.

Net absorption was notably slow in the second half of 2007, although the preference for quality space - that was noted in previous reports - continues unabated.

Rundle says the lower net absorption over the second half of 2007 is a result of increased vacancies occurring in lower grade office space, especially C and D-grade space in tandem with the lack of suitable space in higher grade buildings.

Rundle says the Auckland CBD office market continues to consolidate on the strength and growth of the economy, reflected in the relatively stable vacancies recorded in the past few years.

Since January 2002, the bi-annual survey undertaken by Bayleys Research has recorded vacancy rates ranging between a tight band of just 2.4 percentage points from the record low of 9.5 per cent recorded in July 2007 to the 11.9 per cent recorded in January 2004. The current rate sits at 9.6 per cent. During this time, there have been a number of big developments including the Lumley Centre, Vodafone building, Microsoft building and the KPMG building.

While a large proportion of these developments have been design-built for one major tenant, the strength of the market can be demonstrated by the absorption of the space left behind as these large corporate tenants have upgraded, says Rundle.

The appetite for business growth with the preference for quality space has enabled many owners of Auckland CBD office space to increase their rental rates.

Generally, the largest increases in rents have been by owners of higher quality space.

However, rises have also filtered through to the lower quality buildings, which have also seen a general increase in recent years.

There are a number of key future office developments taking place or in the pipeline, with a majority of these premises tenanted or expected to be upon final completion.

This will lead to the further expansion of the Auckland CBD office market’s net lettable area by around 85,000sq m.

In the short term, Bayleys Research anticipates that the Auckland CBD office market will continue to perform strongly and consolidate on the strong foundation that has led to its current healthy state.

The latest market dynamics and forecasts of office development and refurbishment indicate that the overall vacancy rate should continue to plateau around 10 per cent, says Rundle, although any new additional construction plans that may arise will challenge that.

While there have been steady increases in rents in recent times, this is expected to level out in the short to medium term, with currently under-rented premises increasing to market levels.

Anecdotal evidence suggests that owners of office space in the Auckland CBD are investigating further the protection of the underlying value of the building, says Rundle.

This could result in increased levels of inducement outside of the standard tenancy agreement in exchange for higher face rental levels.

Source: NZ Herald

08 March 2008 

Vacancy levels in Auckland’s city fringe office sector are at a 10-year low, according to Bayleys Research’s latest survey overview of the market.

Continued development activity has increased the net lettable office space in the precinct which encompasses Parnell, Grafton, Newmarket, College Hill and Newton by about 9500sq m over the past 12 months to just under 510,000sq m the survey reveals.

However, leasing uptake has outstripped the new supply of space and pushed the vacancy rate to an historic low of 8 per cent.

“As is characteristic of other office markets in Auckland and around New Zealand, the development of quality office space over the last year has attracted several quality tenants to the area,” says Gerald Rundle, manager of Bayleys Research.

Just under 60 per cent of the total 11,000sq m of space absorbed in the city fringe since the last survey at the beginning of last year has been A-grade offices.

Rundle says the city fringe precinct is popular with employers as adjacent residential suburbs provide a large pool of employees and the areas are close to facilities and amenities for a quality working environment.

The advantages of operating a business in the city fringe include: generally lower total occupancy costs relative to the CBD, car parking at lower rates, quick and ready access to main arterial routes and motorways.

The lower overall vacancy rate is a result of strong leasing activity across all grades of property, with the exception of D-grade space, says Rundle.

“Analysis of market dynamics in the city fringe show that A-grade space is tightly held, with only small pockets available. It is expected that the strong levels of absorption experienced in recent years will continue.”

Chris Urry, Bayleys corporate leasing manager, says an aspect of the leasing market which is becoming more noticeable is the limited amount of available space in higher quality buildings which is forcing tenants to accept lower quality office accommodation.

“This is good for owners of B-grade and C-grade office accommodation, with some who have not been able to lease their space for considerable time, now being able to find tenants,” he says. B-grade and C-grade vacancies have both decreased over the last 12 months in the city fringe, with a 1.6 per cent and 1.1 per cent point drop in vacancy rates respectively.

“While owners of this lower quality space are finding tenants, the preference for quality space is having an important impact,” says Urry.

“Owners of lower quality space are realising that they need to either refurbish to maximise the potential of the building and attract higher rents or offer refurbishment as an incentive to retain existing tenants.”

The College Hill precinct provides just under 140,000sq m of net lettable area making it the largest precinct monitored in the city fringe by Bayleys Research.

The vacancy rate has been relatively fluid, with large increases and decreases in occupancy over the last few years. The latest vacancy rate is down 2.4 percentage points to 6.5 per cent as a result of around 6000sq m of net absorption.

While a majority of this absorption was of B-grade space, this resulted from no A-grade space in the precinct being available despite this top category of office space representing just under 40 per cent of the total net lettable area.

Newmarket is a similar sized precinct to College Hill and continues to attract high profile tenants because of its closeness to the city, but without Auckland CBD’s higher rents, and easy access to main arterial motorways,

The fashionable and exclusive feel of the area, offering quality shopping and a variety of good cafes and restaurants, makes it a popular working environment.

Newmarket’s vacancy rate has increased from 6 per cent to 6.9 per cent since the beginning of last year, largely because of the result of the recent completion of 435 Khyber Pass Rd adding about 3000sq m of A-grade space.

However, most floors of this building are already tenanted, with only the vacant first floor contributing to the overall increase in the vacancy rate.

Bayleys Research says lower grade buildings in Newmarket will also continue to be upgraded as the demand for A-grade space remains high.

Neighbouring Parnell has experienced a decrease in its vacancy rate in the last 12 months from 12.5 per cent to 10.3 per cent.

The Parnell precinct has benefited significantly from upgrades to infrastructure and office accommodation exemplified by the refurbishment of the Kodak Building and the historic Heards Building, which is offering apartments as well as office space of just over 2000sq m. Infrastructure also continues to be upgraded with the redevelopment of Heard Park and surrounding footpaths next to the Heards building in Parnell Rd.

A-grade space in Parnell continues to be tightly held with no vacancies. The majority of net rents for good quality space (A-grade) now range between $250 to $300 per sq/m with reports of some space achieving $330 per sq/m. Average quality space (B and C-grade) is now around $180 to $210 per sq/m.

Development in the area continues with the four-storey B28-30 building in Balfour Rd set to provide a further 4000sq m of A-grade space while the Carlaw Park redevelopment will provide extra office space of approximately 10,000sq m.

The vacancy rate in Grafton has been relatively stable at around 13 per cent for the last two years.

Just under 90 per cent of the 98,000sq m total of net lettable area in the precinct is B and C-grade space. Refurbishment is the major focus of current owners who are looking to attract and retain tenants as well as get higher rents for an area generally associated with lower grade buildings.

Newtown continues to provide the lowest vacancy rate at 4 per cent, of all five city fringe precincts monitored by Bayleys Research.

While this indicates a slight increase in vacancy rate since the 3 per cent recorded in last year’s survey, the vacant space has only increased by about 750sq m and it seems much of this space will be tenanted shortly.

INNOVATIVE DESIGN PROVIDES LIFESTYLE BENEFITS

Typical of some of the high-quality, innovative new buildings appearing on the city fringe is this three-level mixed-used office and apartment building in Park Rd, Grafton.

Designed by Bailey Architects, the five-year-old building won a NZIA Resene Auckland branch award in 2006. The 343sq m premises are split between a west wing office building and an east wing apartment. The east side also has a roof deck and enclosed outdoor area.

Mark Habel, who is marketing the property with Bayleys’ colleague Clint Barber, says its flexible design allows for different work/life configurations.

The building is on a 255sq m site and is for sale by private treaty in Bayleys latest Total Property portfolio.

7 February 2008

Property price growth continues in most of New Zealand’s regions where up to an amazing 29% per annum has been recorded. At a similar pace, rental yields have undergone continuous rises creating profitable prospects for landlords and property investors alike.

A report carried out by the Massey University Real Estate Analysis Unit registered rises in median residential rent levels across the country by NZ$10 a week over the last quarter of 2007 to NZ$290. The report, based on data from the private rental sector and supplied by the Dept. of Building and Housing Bond Centre, explains that median rental levels stayed well ahead of inflation, increasing by 3.5% from August 2007.

According to Professor of Property Studies, Bob Hargreaves “Increases in rents over the last quarter are likely to be partly the result of demand pressure from net migration and potential first home buyers who are remaining in the rental market for longer than expected.”

Informetrics’ managing director, Gareth Kiernan, comments on how “rental inflation edged higher over the final quarter of last year as tenant demand for rental accommodation appears to be solid across all dwelling sizes.” And figures correlate his statement as the company recorded gross rental yields creeping up to 4.39%.

In January this year, the Real Estate Institute of New Zealand published latest home valuation figures, which recorded an increase in property sales of 6% compared to 2006. Some areas such as Ellerslie-Panmure saw 29% value increase and one of the country’s star regions, Gisborne, continued its good run with values rising 13% last year, closing a 4 year increase of 111%.

As with all global economies, New Zealand’s Reserve Bank Governor Allan Bollard has stressed his concern: “There has been ongoing turbulence in international financial markets. Despite this, the New Zealand economy is projected to keep growing reasonably well.”

New Zealand property is expected to continue attracting lucrative returns, whether through capital appreciation or rental yields. The country boasts political stability and a sound infrastructure already in place. Investment property purchasers are safe in the knowledge that the country does not rely solely on tourism, with the domestic rental market currently generating higher yields and returns alone.

Source: NZNewsUK

22 November 2007

New Zealanders not only spend most of their money on property, but looking after it has now outstripped manufacturing as the country’s biggest employer.

Statistics New Zealand’s Linked Employer-Employee Data (LEED) series showed 238,200 people were employed in property and business services during the September 2006 year, up 3 per cent from 2005.

The manufacturing industry fell to second with a 1.9 per cent fall in the number of jobs to 237,000. The textiles, clothing, footwear and leather manufacturing sub-industry was the key driver of the decline in manufacturing jobs.

Total filled jobs across all industries increased 1.7 per cent to 1,751,450 in the September 2006 year from a year earlier. Over five years, the number of jobs had increased 17.4 per cent.

The mining, construction, electricity, gas and water supply industry grouping had the highest filled job growth rate of 7.3 per cent in the year to September 2006 and 51.8 percent in the five years to September 2006.

The construction industry was the key contributor to the increase in filled jobs within this industry grouping.

Agriculture, forestry and fishing together with manufacturing were the only two industries to report a decline in filled jobs (2.0 per cent and 1.9 per cent, respectively) in the year.

The average mean quarterly earnings for all industries was $10,530 during the September 2006 year — up 4.5 per cent from the September 2005 year and 21.7 per cent increase from the September 2001 year.

Health and community services had the highest average mean earnings growth of 6.9 percent and 29.3 percent during the two reference periods.

The finance and insurance industry continued to be the highest paid industry with average mean quarterly earnings of $16,450 while the lowest paid were in agriculture, forestry and fishing at $8030.

Source: NZ Herald

November 11, 2007

One of the last classic Kiwi baches on Waiheke Island - owned by the same family for 45 years - has been put on the market for the first time.

The fibrolite bach, built in the early 60s on The Strand at Onetangi, is one of the last survivors from an era before multi-million dollar beach homes became a common sight on the island.

Now, the cute, white two-bedroom bach on an 835sq m section facing out to sea is up for sale at $2.2 million.

The bach was built by the father of the present owner, who asked not to be identified.

“It’s been loved all right,” he said. “I can remember holding up the fibrolite sheets for my dad when he was building it. I have grown up there.”

The owner said his father bought two sections on Waiheke for about £1200. At the time, he joked, you could win a section on Waiheke as second prize in a pub raffle.

“It’s changed a bit. It used to be a step up from a camping ground.

“There are still no traffic lights and no McDonald’s. But now there are very, very rich people in baches.

“There used to be a row of families we used to knock around with.

“We had happy family days there, fishing, canoeing and sailing… It’s one of the richest memories as a kid you can ever get.”

He said he would be sad to part with the bach which had been a holiday home for three generations of his family. But he had reluctantly decided to sell to “help my kids out”.

He did not expect the bach to be preserved by the new owner. “But we’re buying another place. We’ll never leave the island. It’s in my blood.”

Daniel Burrill from Matthew Smith Real Estate said the bach was one of the last of its kind on Waiheke.

“It’s one of the best properties on the island. So many have been developed now. The whole island has changed a lot in the past five years,” Burrill said. “The old Waiheke is still there, but it’s a real mix.”

Monday 10 September 2007

August property statistics released by QV today report a 13.3% growth in national property values over the past year. Over this period, the average sale price for New Zealand properties was $394,397. Find out what is happening in the main urban areas here.

Wellington
Property values in the Wellington region increased by 16.5% over the past year, similar to the level reported last month. The average sale price for the region was $448,267.

“Increases in property values have been steady in the Wellington Region, with Upper Hutt and Lower Hutt continuing to lead the market with 21.5% and 20% respectively,” says Max Meyers of QV Valuations. “The western part of Wellington City is the highest priced area with an average price of over $570,000”.

“Feedback from the market is reporting consistently low levels of sale activity across the region. Expectations are that the very buoyant figures reported for the Wellington region will soon ease in coming months. With this in mind more caution should be exercised in pricing property, as ambitious pricing is highly unlikely to be covered in the current market conditions.”

“Across the country, year on year growth in property values remains strong” said QV spokesperson Blue Hancock. “Reduced winter listings have been matched by less buyer activity, creating a balance in the market and resulting in prices still holding up in most areas”.

House prices across the main urban centres are at levels similar to the past few months. Auckland City’s property values have increased by 12% over the past year. Hamilton, Wellington and Christchurch all recorded growth rates above 14%.

Of the provincial cities, Gisborne 25.3% and Invercargill 34% showed further increases in annual growth and maintained their top positions in the country. Other provincial cities remained steady with Tauranga, Palmerston North and Queenstown growing at 7%, 14.7% and 11.6% respectively.

Several areas experienced easing growth rates for the period ending August. Of the main centres, the growth rate in Dunedin declined from 10.8% last month to 9.6% this month. Several provincial cities including Wanganui 13.8%, Hastings 8.6%, and New Plymouth 9.4% also experienced easing growth in property values. “With the effect of the winter market we are likely to see annual growth easing in more areas in coming months” said Hancock.

Main Urban Areas Commentary
Auckland
Property values in the Auckland region grew by 13.1% over the past year . The average sale price for the region was $504,860.

This month’s statistics continue to present a rosy picture of the residential property market for the Auckland region. The year-on-year growth rate is up on levels reported last month across the Auckland region with the exception of Franklin, which remains fairly static. Average sale prices in different cities and regions are all rising.

“Sales volumes in all areas are down, but prices seem to be holding. This scenario fits with the reports of reduced levels of listings over the winter period” said Glenda Whitehead of QV Valuations.

“Our valuers working in Waitakere city report a slowing of activity over the past 4-6 weeks. Agents are saying that there is still a reasonable number of buyers looking for property. However, the shortage of good stock along with high vendor expectations is making the sales hard work” said Whitehead. “There is evidence of properties staying on the market for 6-8 weeks. Properties at the lower end of the market and the more highly priced ones are slower to move, in comparison to the medium priced suburbs. Activity levels still appear healthy in Te Atatu, New Lynn and parts of Henderson”.

“Within Waitakere city properties that have been recently renovated seem to be selling quicker than those that are dated or “tired”, with the latter sitting very long on the market, usually because the asking price is unrealistic,” Whitehead says.

“Activity in the Manukau area is down in recent months, with limited stock on the market at present. Generally it is felt that sale prices appear steady. Many people involved in the wider residential market feel that activity levels will increase as we get into the spring months,” Whitehead says.

Hamilton
Hamilton’s property values increased by 14.1% over the past year.

“The property market in Hamilton still shows its resilience with the value growth for the city higher than last month. North East 14.3% and South East Hamilton 13.1% reported slight increases in annual growth rates. However, there are signs that the market is beginning to ease with South West Hamilton dropping to 12.2% and North West Hamilton static at 12%,” Richard Allen of QV Valuations says.

“The Hamilton market’s durability is also reflected in an increase in the average sale price from $356,849 to $358,944 this month. Expectations are that sales activity will decline, however sale prices are likely to remain static rather than decrease,” Allen says.

Tauranga
Tauranga property values grew by 7% over the past year. “The Tauranga property market has been stable with growth rates recorded at similar levels over the past four months,” QV’s Christopher Boyd says.

“The average sale price in the city increased from $425,865 last month to $433,748 this month. This increase is a reflection of where the market activity is occurring” said Mr Boyd. “It appears that investor interest in the lower end has cooled with some investors deciding it is time to cash up”.

“Recent anecdotal evidence suggests that sales volumes and inquiry continue to slow and lending institutions are experiencing the lowest levels of activity for a number of years,” Boyd says.

Christchurch
Property values in Christchurch increased by 14.1% over the past year, up from 13.1% reported last month. The average sale price for the city was $359,809.

“The lower end of the market dominated by first home buyers and investors is very active, which fuels the growth in the city,” says Mark Dow of QV Valuations. “Nearly 75% of Christchurch sales are in the under $400,000 bracket. Less competition and interest is seen in the upper end of the market.”

“The market in the provincial centres seems to be on a plateau with minimal difference in growth rates compared to last month. Selwyn is the only area that recorded a fall in property values from 24.5% to 21.6% this month. The general feeling is that the market will continue to flatten and growth rates will soon be easing in more areas”.

Dunedin
Dunedin’s residential property values increased by 9.6% over the past year, down from 10.8% last month. Over this period, the average sale price in Dunedin was $271,703

“The continued easing of the annual growth in the city is a reflection of the usual slow down over the winter period, rather than an indication of any significant market correction. There still appears to be a good balance between supply and demand,” David Paterson of QV Valuations says. “Expectations are that property values will continue the trend of easing as seen over the past two months.”

“Different patterns of the property growth are seen across the city. The northern city 7.3% and southern city 9.1% are growing at slower rates than last month while Taieri 12% and the coastal/peninsular location 16% report further increases in annual growth.”