The property data company’s latest house price index (HPI) released yesterday showed 260 properties listed in Dunedin, up 21% on July 2019 when there were 215 listings. Other main centres remain at least 30% below 2019 levels.
The HPI also showed house prices across country grew by 1.8% last month.
That was the same rate of growth recorded in June, but they were down on both May (2.2%) and April (3.1%).
The country’s total increase for the July quarter was 5.9% to a average price of $922,421.
Dunedin was the slowest of the New Zealand’s six largest cities, with an increase of 4.5%, with the highest being Christchurch with a 8.4% increase.
Property values in Dunedin have more than doubled over the last six years, rising from $269,000 in July 2015 to $646,000.
The slow rate of growth in Dunedin for July would be down to seasonal activity, Harcourts Dunedin sales manager Richard Stringer said.
‘‘What we are seeing is a normal seasonal variant. The market came back in June but that has happened before in the middle of a strong market when you have a quiet period.
‘‘We had the lowest volume of sales in June for the last five years, a lack of selection of property and a normal winter slowdown has given us those slower growth results,’’ he said.
The high rate of properties listed in July could help activity in the Dunedin market this month , Mr Stringer said.
‘‘We have been experiencing good activity from buyers but it is just a shortage of available stock but if listing numbers are on the improve it should result in some growth,’’ he said.
There was continued interest from first-home buyers and people already established in the housing market who would be looking to lock a property in before interest rates went up, Mr Stringer said.
The Dunedin hospital build and other pending development in the city would further drive demand in the city’s market, he said.
Bayleys Metro’s sales manager Adam Gain believed Dunedin’s housing market was looking positive but stock was ‘‘definitely tight’’.
‘‘Some times that is a seasonal thing but we have listed quite a few houses in the last couple of weeks, especially following the school holidays.
‘‘We would like to think that would result in a good influx heading into the spring and the coming months,’’ he said.
Despite it being winter, there was a still a good number of people turning up to open homes and ‘‘strong numbers’’ of inquiries from potential buyers, Mr Gain said.
Government legislation change earlier this year had led to less interest from investors in the market. Most of them were looking at newer build properties now, he said.
There was a lot of private property development going on in Dunedin which would help the housing stock eventually, Mr Gain said.
‘‘The properties are being cut down to smaller blocks and people are building lots of new town houses which will definitely help the supply of good housing,’’ he said.
