Residential property values across the region from Wellington city through to Porirua, Kapiti and the Hutt Valley rose 9.6 per cent overall in the year to September and increased 1.6 per cent over the past quarter. The average property value is now $664,418.
Paul McCorry, senior consultant with QV Wellington, says that the Wellington housing market appears to be settling into a holding pattern after a period of sustained growth, and remains a sellers’ market.
The latest QV House Price Index shows that Wellington City values increased 8.5 per cent year on year and by 1.9 per cent over the past three months. The average value property is now $795,098.
Values in Upper Hutt rose 8.8 per cent year on year and 1.8 per cent over the past three months, with Lower Hutt rising 3.4 per cent year on year and 0.1 per cent over the past quarter.
Porirua rose 7.8 per cent year on year and 0.3 per cent over the past quarter.
The Kapiti Coast rose 7.4 per cent year on year and 1.2 per cent over the past three months.
QV Wellington Senior Consultant Paul McCorry said, “Values have continued to level off over the last three months, predominantly in the higher-value eastern suburbs of Wellington City. The more affordable northern suburbs continue to show some modest value growth, highlighting the influence of first home buyers in these areas.
“Due to affordability constraints, demand remains buoyant for apartments in Wellington City which has seen some recent value growth. These new developments tend to sell well, with many still being purchased off plans.
“In the Hutt Valley and Porirua, overall values have either stayed the same or grown modestly over the past three months but these areas lead the way in terms of year on year value appreciation, said McCorry.
“The low interest rate environment and low listing numbers will continue to support values at their current levels for in the immediate future. This is further supported by the Reserve Bank’s recent announcement that the Official Cash Rate will remain at 1.75 per cent, as it has done since September 2016, which is likely to maintain favourable mortgage lending rates.
“While listing numbers remain close to historically low levels, the month of September has seen the typical spring surge of properties coming to market and we would expect this to continue with the approach of summer. In saying this, the increased supply is likely to keep a lid on value growth over the coming months.”