National property values continue to show weakening signs, hitting a five-year low at less than 5% growth, but across much of Otago the price growth is double or even triple the national average.
Nationally, the average value of a house grew 4.8% in August, compared with a year ago, to $641,648, but Taieri, Central Otago and Queenstown Lakes all grew by more than 15% and most of the rest of Otago was in double-figure growth.
QV national spokeswoman Andrea Rush said around the South Island, values continued to rise in Clutha, Central Otago, Waitaki and the Queenstown Lakes District, and also Tasman, Nelson, Marlborough districts.
She said while Dunedin growth value year-on-year was 12.6%, hitting $375,814, during the past quarter, that growth had slowed to 0.5%.
Ms Rush said there had been a 30% drop in market activity and sales volumes compared to a year ago, prompted by the Reserve Bank’s loan to value ratio restrictions and the stricter lending criteria by retail banks.
"General elections also traditionally compound any annual winter slowdown in the housing market due to uncertainty caused by potential policy changes," Ms Rush said.
QV’s Dunedin registered valuer Aidan Young said the city’s residential property values continue to rise, but at a slower rate than earlier in the year, overall up by 12.6% in the year and now 31.3% above the previous peak of 2007.
"The Dunedin market continues to see value growth although a low number of listings across the market is constraining sales somewhat and providing slim pickings for buyers," Mr Young said.
Strong demand remained, multi-offer scenarios were still common and more buyers were getting valuations in order to present the most attractive offer, with fewer conditions attached.
Ms Rush said elsewhere around the South Island quarterly values had decreased recently, including Kaikoura down 5.5%, following the earthquakes and also down in Southland, Invercargill, the West Coast districts of Grey and Westland, Hurunui, Ashburton, many parts of Christchurch as well as on Otago Peninsula.
Ms Rush said new subdivisions in Auckland, previously popular with speculators including those from China, had also recently had lower demand and discounted sale prices.
"It’s now much harder for new migrants or foreign buyers from China to get their cash out to purchase property," she said.
It was likely the spring market upturn might be slower to arrive, given the pending election.
However, Ms Rush said, given the national lack of supply and high migration, particularly in Auckland, it was possible values might begin to rise again more steadily in the new year.
