Property price growth in New Zealand has slowed considerably in recent months and is now a third of what it was a year ago, new figures show.
According to the latest Quotable Value data, residential property values increased by 2.3 per cent nationwide in the year to May. However, in the same period a year earlier, annual price growth was 6.9 per cent.
A significant drop in values in the Auckland property market has been largely responsible for the slower market. Values in NZ’s biggest city fell by 2.1 per cent year-on-year. The North Shore area had the steepest decline in the city, with values dropping there by 3.9 per cent in the year to May.
Auckland was not the only one of New Zealand’s major centres to be experiencing a period of stagnation in its property price growth. According to Paul McCorry, a senior consultant at QV, prices were flat in most major centres, with Hamilton, Christchurch and Wellington recording prices increases of less than 1 per cent over the past quarter.
However, he said more affordable places such as Wanganui and Manawatu, and “lifestyle” regions such as Bay of Plenty and Hawke’s Bay, were still seeing strong price growth.
Indeed, Kawerau in the Bay of Plenty saw annual growth of 29.3 per cent and South Waikato 18 per cent.
Whanganui was up 9.1 per cent in the quarter, Waitomo 7.6 per cent and Manawatu 6.6 per cent.
Article published 7th June 2019