House values across the Wellington region rose 7.8% in the year to December and increased 3.2% over the past quarter and the average value is now $688,074.
Wellington City values increased 7.4% year on year and by 2.3% over the past three months and the average value there is now $813,052. Meanwhile, values in Upper Hutt rose 12.1% year on year and 5.7% over the past three months; Lower Hutt rose 6.7% year on year and 4.2% over the past quarter; Porirua rose 9.4% year on year 5.3% over the past quarter. Finally, the Kapiti Coast rose 5.7% year on year and 2.2% over the past three months.
QV Wellington Senior Consultant David Cornford said: “The holiday season is now behind us and market activity will start to pick up, however it’s not until after Wellington anniversary weekend that the market really kicks into gear.”
“The first three months of the year is generally a busy period in the market with buyers coming to the Capital City to enhance their employment and educational opportunities. We’re also seeing families join the pool of buyers, including those who’ve made plans over Christmas to upgrade or whose New Year’s resolutions include re-housing plans.”
“Stock levels remain low, however we should see a wave of fresh listings come to the market over the next three months providing buyers with a bit more choice.”
“Tight supply, low interest rates, as well as a slight relaxing of the Loan to Value Ratios (LVR’s) is likely to combine to form a relatively buoyant property market at the start of 2019. Despite this, value growth is expected to continue to moderate over 2019 as affordability issues put a damper on the market.”
“First home buyers have had a strong presence in the market over the last two years and we expect this to continue into 2019, particularly given a slight relaxing of LVRs.”
“Late 2018 saw a relatively settled market with modest value growth and buyers are continuing to take a measured approach with more sales being conditional on getting bank finance and other conditions such as builders reports”
“Rents are increasing in the Wellington region as a shortage of rental accommodation continues with the cost of renting in Wellington now similar to Auckland.”