House values in Wellington continue to rise, though increases for the year to June don’t match those in the Hutt Valley, Porirua and Kapiti Coast. Sales activity is highest in the northern suburbs.
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The latest monthly QV House Price Index shows that residential property values across the whole Wellington Region rose 4.8% in the year to June although they dropped 0.8% over the past quarter and the average value is now $639,112.
Wellington City values increased 4.3% year on year but dropped 1.3% over the past three months and the average value there is now $758,020.
Meanwhile, values in Upper Hutt rose 9.7% year on year and 1.9% over the past three months; Lower Hutt rose 5.0% year on year and 0.6% over the past quarter; Porirua rose 10.8% year on year and increased by 2.8% over the past quarter. Finally, the Kapiti Coast rose 9.6% year on year and 1.4% over the past three months.
Nationwide, residential property values for June increased 5.7% over the past year, while values dropped 0.3% over the past three months. The nationwide average value is now $675,680. When adjusted for inflation, the nationwide annual increase drops slightly to 4.6%.
QV Wellington Senior Consultant, Paul McCorry said, “Value growth continues to moderate as we enter the winter months. Sales activity is subdued, with low listing numbers particularly in established inner city suburbs. Northern areas continue to lead the way, with almost a quarter of all Wellington City properties for sale located in the suburbs of Churton Park, Tawa, Johnsonville and Newlands. These suburbs continue to appeal due to their relative affordability and proximity to the city.”
“Demand remains high from first home buyers, with many taking advantage of less competition at open homes and auctions through winter. This is particularly evident in more affordable areas such as Hutt City and Porirua.”
“In Wellington, sales and development activity is focused on one and two bedroom units in the central city, however we’re also seeing plenty of demand in the Hutt Valley. Petone, in particular, is proving popular due its access to strong transport links into the city.”
“Overall, despite a slowdown in the rate of value growth, market conditions remain strong with key indicators such as low interest rates, strong net migration and demand still far outweighing supply in terms of new development. With these factors prevailing, I would anticipate stable market conditions to remain over the quieter winter months.”