Eastern Suburbs Lead The pack

Published 11 January 2012
Home values in Auckland’s eastern suburbs kept charging upward in December and continued to rise at a more sedate pace nationally, according to Quotable Value Ltd’s latest index report, out yesterday.

The big rises in the Auckland region were again in the old Auckland City and also in the Onewa area of the North Shore.

In the old Auckland City’s eastern suburbs, the average sale price over the past 3 months was up $40,000 on the 3 months to November and the value growth for the latest period was a rise of 6.1%. The central area was also up 6.1% and southern suburbs up 6.2%. For the whole of the old Auckland City, the rise in values in the latest period was 5.8%. In the Onewa area, values gained 4.1% in the 3 months to November and 5.6% in the period one month on.

QV’s national residential index rose 2.4% from a year ago (on the rolling 3-month basis) to be 3.5% below the late 2007 peak.

In Auckland, however, values over the whole region increased by 4.3% during 2011 and ended the year 1.4% above the 2007 peak. QV research director Jonno Ingerson assessed the rise this way: “The Auckland market in 2011 was generally characterised by a lack of new listings & quality stock. This led to increased demand for the good quality properties that did come to the market. The central suburbs performed particularly well and, consequently, the old Auckland City area increased 5.8% during the year and values are now 3.3% above the previous market peak.”

On the national scene, he said: “For the first few months of 2011 values across New Zealand were stable, with rising values in Auckland & Christchurch being balanced by falling values in many other areas. From April onwards, national values began to increase as most of the main centres, apart from Wellington, began to stabilise. By September, values were increasing in all the main centres, including Wellington, as well as in many of the provincial & rural towns, suggesting a nationwide improvement in the property market.

“The year ended with the first signs that this apparently nationwide recovery may be faltering. National values increased from November to December, as they continued to do in Auckland, Wellington, Christchurch & Dunedin. However, values flattened in Hamilton & Tauranga and dropped in several provincial towns that previously had been recovering, notably Gisborne & Rotorua.

“Despite national values moving upwards during the year, the property market continued to be characterised by lower than normal sales volumes. Sales numbers in 2011 were more than 20% below the long-term average and, while up a few percent on the sales volumes of 2008 & 2010, both of those years were the lowest since the early 1980s, so outside of those 2 years 2011 is the lowest for 20 years.”

Around the Auckland region (still using old council boundaries), growth in the 3 months to December compared to the same period last year, the annual change to November in brackets, and average sale price in the 3 months to December (and to November in brackets):

Rodney, 1.7% (0.6%), $508,107 ($486,238)
Rodney North, 3.9% (2.4%), $524,749 ($488,703)
Hibiscus Coast, 0.5% (-0.8%), $494,026 ($484,271)
North Shore, 3.8% (3.3%), $583,684 ($589,601)
Coastal, 3.0% (3.0%), $644,469 ($665,224)
Onewa, 5.6% (4.1%), $467,908 ($466,434)
North Harbour, 3.5% (3.5%), $647,208 ($640,074)
Waitakere, 3.2% (2.4%), $403,206 ($406,183)
Auckland, 5.8% (4.7%), $597,023 ($577,774)
Central, 6.1% (4.8%), $531,502 ($502,480)
East, 6.1% (4.6%), $745,691 ($705,354)
South, 6.2% (5.3%), $536,569 ($532,520)
Islands (low volume), -6.4% (-1.5%), $521,500 ($565,446)
Manukau, 2.5% (2.1%), $456,553 ($451,827)
East, 4.4% (4.2%), $557,979 ($556,189)
Central, 1.8% (1.0%), $354,472 ($353,303)
North-west, 0.5% (0.1%), $411,608 ($405,316)
Papakura, 2.1% (0.0%), $359,394 ($351,092)
Franklin, 2.1% (1.8%), $381,229 ($384,270).

Bob Dey Report

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