- NZ's three biggest cities register first three-month rise in house price growth in more than a year.
- Figures from OneRoof-Valocity House Value Index indicate downturn has run its course.
- Low listings volumes driving market activity and putting pressure on buyers.
- OneRoof identifies the Hot 100 suburbs in NZ's major metros.
- List dominated by affordable suburbs but the biggest growth has been in NZ's wealthiest and most prized suburbs.
New Zealand's property market is witnessing a significant shift, with fresh figures from OneRoof.co.nz in collaboration with data partner Valocity signalling the end of a prolonged slump in the country's three largest cities.
The latest OneRoof-Valocity House Value Index figures point to a noteworthy rise in average property values across Auckland, Christchurch, and Wellington, effectively halting a decline that persisted for more than a year, leading to property values dropping by up to 26%.
Furthermore, the figures suggest an overall end to the downturn for New Zealand, with the nationwide average property value recording a minor 0.1% decrease over the past three months. However, it has displayed consistent week-on-week growth since the start of July.
OneRoof chief Greg Hornblow says the figures will be warmly received by the real estate industry as it heads into what could be a busy spring period.
“This turnaround in the market brings optimism and opportunities for agents, vendors, and eager home buyers alike. At OneRoof we are looking forward to playing a pivotal role in the market recovery, arming individuals with the information they need to navigate the challenges ahead. Whether it’s through our property listings, latest house sale information, news content relevant to the sector, or opinions and insights, OneRoof is New Zealand’s complete property destination,” he says.
Auckland’s average property value was up 0.3% to $1.294 million in the three months to 21 August. The increase, while small, puts the city’s housing market on a more optimistic footing heading into spring.
Christchurch exhibited even more robust growth, with the city's average property value surging by 2% over the last three months, totalling $758,000. For the wider Canterbury region, growth registered at 0.9%.
In contrast, Wellington saw more moderate growth, with a 0.1% increase over the last three months, pushing the average property value to $981,000, however, the figures indicate it won’t be long before the region turns the corner.
OneRoof editor Owen Vaughan says the figures backed up the pick-up in sales activity in Auckland, Christchurch, and Wellington.
“The figures are a stunning turnaround for the housing market. Just three months ago, property values in Auckland were declining at a rate of 3%. Since the start of June, we’ve noticed more buyers at open homes in all three metro areas, and auction rooms springing back to life – an unimaginable turn of events back in April and May.”
“Driving the lift has been a shortage of fresh stock, with new listings over the last three months down 13% year-on-year and total listings down 1.4% over the same period.
“The drop-off appears to be easing in Auckland, with new listings in the city in the last three months down only 7% on the previous three-month period. The decline in new listings in Christchurch and Wellington, though, is higher, and is likely to be putting real pressure on buyers.”
The figures also show which locations are primed to lead the house price revival. The analysis identified the "Hot 100" major metro suburbs where house prices are set to recover quickest.
Vaughan says: “The biggest value increases were in some of the country’s cheapest and far-flung suburbs, but volatility in the value figures in these locations – driven by low or patchy sales activity – suggest the market revival will be strongest and firmest in the country’s major metros.
“Analysis by OneRoof and Valocity identified 100 major metros suburbs where property values were up in the three months to 21 August – up from just 40 at the end of July.
“High-end neighbourhoods in Christchurch were enjoying boom-like lifts in their average property value, with Merivale up 6.5% and Sumner up 6.1%, while in Auckland value growth was strongest in Great Barrier Island, Blockhouse Bay and Ostend.”
You can access more information on the OneRoof-Valocity House Value Index report here at OneRoof.co.nz.