Residential property prices in some of New Zealand’s largest cities fell in the last quarter, causing some economists to warn of a growing malaise in the market.
According to the latest Quotable Value figures, six of the 15 cities surveyed recorded a drop in residential property prices in the three months to July.
Auckland led the decline, with residential property prices down 2.6 per cent year-on-year and 0.8 per cent over the quarter. On the North Shore, average values were down by 4.1 per cent over the year.
Elsewhere, in the last quarter prices in Tauranga were 0.3 per cent, Hamilton down 0.1 per cent, Rotorua and Queenstown Lakes down 1.5 per cent, and Napier down 0.2 per cent.
In central Wellington, values were down 0.5 per cent but strong performance in the rest of the region helped to push prices up 0.9 per cent over the quarter overall.
Hastings and Palmerston North had the largest quarterly price increase, up 2.5 per cent and 2.4 per cent respectively.
“The regions that continue to see the strongest value growth, such as the Bay of Plenty, Hutt Valley and Porirua, are generally those offering more affordable property in areas where the local economy provides plenty of job prospects within a commutable distance,” QV general manager David Nagel said.
On a year-on-year basis, residential property prices across NZ rose by 2.2 per cent between July 2018 and July 2019, the figures show.
Article published 7th August 2019