Property prices in the more affordable main centres of New Zealand continue to rise. In particular, the wider Wellington region and Dunedin has seen strong property price growth over the past year.
According to the latest QV House Price Index, the wider Wellington region, with strong quarterly growth of 4.0 per cent, continues to see values steadily increase as buyers are attracted to the more affordable outer city areas such as Porirua and the Hutt Valley.
Though the overall property market in New Zealand seems to be cooling, there has still been property price growth nationwide of 3.5 per cent over the past year and 1.3 per cent over the last three months to November, reaching a national average of $681,545.
The Wellington region however seems to be outpacing the rest, with annual price growth of 8.1 per cent and a quarterly rise of 4.0 per cent meaning that the average price has now overtaken the national average at $685,387.
Wellington City values increased 7.4 per cent year on year and by 3.5 per cent over the past three months and the average value there is now $805,442.
Values in Upper Hutt rose 8.8 per cent year on year and 2.4 per cent over the past three months; Lower Hutt rose 9.2 per cent year on year and 5.8 per cent over the past quarter; Porirua rose 9.3 per cent year on year 4.6 per cent over the past quarter. The Kapiti Coast rose 6.5 per cent year on year and 2.2 per cent over the past three months.
Senior Consultant at QV Wellington, David Cornford commented: ‘Record low interest rates and low levels of inventory are underpinning moderate value growth, particularly at the low-to-mid priced section of the market.’
He continued: ‘There is plenty of residential development going on throughout the region ranging from single dwelling developments through to large-scale subdivisions and apartment buildings. These developments continue to provide additional supply, however this is being offset by population growth which continues to fuel demand.’
Overseas property investors will particularly be interested in the upward trend of rents in the Wellington region.
Mr Cornford said: ‘Rents have significantly increased in the Wellington region over the last 12 months, particularly in the Hutt Valley and Porirua, and we’re likely to see a continuation of this upwards trend into 2019 until supply constraints are properly addressed.
‘Investors continue to be active in the market, attracted by high rents which are trending upwards.’