Struggling to keep up with property prices? At the rate they've been rising, we can hardly blame you! According to the latest QV House Price Index, there was a 15 per cent jump in dwelling values across the country in the year to November. That means if someone bought a $500,000 property this time last year, they could have an extra $75,000 tacked on just through the property market.
Of course, the country's property market is full of ups and downs - Raglan isn't going to have the same growth as the Wellington CBD! So let's take a look at the report and figure out the movers and shakers of recent times. It might even help you decide where to buy your first home!
In the South Island, QV spokesperson Andrea Rush highlighted Christchurch, Dunedin and Invercargill as areas that have seen good spring growth. Invercargill is a bit of a surprise entry here, as its growth has been pretty slow over the last few years.
It's a particularly positive result when you consider that October building consents from Statistics NZ are actually down on last year in the Canterbury region. Even though stock growth has slowed, price growth hasn't!Christchurch's growth is expected, as construction there has been in full swing since the earthquakes. However, it did have a sluggish opening few weeks of spring, only to kick into action as summer grew closer. With an average dwelling value of $480,464 and 2.9 per cent growth over the year, things are looking good.
As you'd expect, though, the strongest capital growth was seen up here in Auckland. Over the last three months, dwelling values went up by 6.1 per cent, bringing the 12-month total increase to 22.8 per cent. While it's solid movement, Ms Rush did point out that the brakes are being pumped a bit in this area.
That being said, the New Zealand Institute of Economic Research has pointed out that migration flows are going to keep demand for NZ real estate nice and high next year, which probably means ongoing growth in prices."It appears new rules to curb investors along with restrictions on the capital flow out of China have led to an easing in the market," she noted in the December 1 release.
Whether that's an affordability barrier between you and your first home or music to your property investment ears, make sure you've got the right home loan advice before dipping your toes in the market!
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