House prices on the up again

They show a 9.3% growth in residential property values over the past year (calculated over the three months ending February 2007 in comparison to the same period last year). The growth rate increased from 8.8% reported in January 2007 and has returned back to a similar level at the end of 2006 (9.4% in November 2006 and 9.2% in December 2006). The average New Zealand sale price increased from $356,028 last month to $363,017 this month.

“The residential market remains a positive sector to invest in, with growth again strengthening. This is driven by confidence in the market, supported by higher migration figures than predicted, stable interest rates over the last year and strengthening rental returns in several areas” QV spokesperson Blue Hancock says.

Of the main urban centres, Auckland 4.8%, Hamilton 12.2%, Wellington 10.8% and Christchurch 9.8% all reported slight increases in annual growth compared to last month. Tauranga’s growth eased from 2.4% last month to 2%, while the increase in Dunedin’s property values was steady at 6.1%.

Among the provincial cities, increases in growth rates were recorded in Gisborne 27%, Masterton 15.2%, and New Plymouth 9.6%. Porirua and Queenstown growth was stable at 13.1% and 5.6% respectively. Easing growth rates were reported in Lower Hutt 17%, and Upper Hutt 15.7%.