By Max Meyers, Registered Valuer
Modest, steady value increases across the region, an average number of listings and sales for this time of year.
Noticeable variations include a big increase in the average asking price and very low numbers of properties available for sale. Selling times are noticeably quicker and median prices are increasing, although this is not reflected in the QV data that shows modest value growth of 1.7% for the year to September. It does appear that pressure is on prices and this is typical for this time of year as buyers come into the market before sellers decide to list. We expect more significant price movement for the rest of the year, particularly with easing of LVR restrictions in the Wellington area taking effect from 1st November 2015.
The top growth area from the same data is the Western Suburbs at 3.6%. However, there are noticeable pockets within the Region that are showing more significant price movement. New housing in central areas is in high demand and new buildings scarce. One new release of homes has seen a 15% increase from pre-build valuations to sale prices. Some types of housing is popular, particularly homes in need of renovation where prices are not factoring in the cost of upgrading.
The significant increase in asking prices in the past year has not been matched with value increases this year. However, conditions have changed with a shortage of properties for sale, faster selling times and more sales taking place, which suggests that this may now be getting some traction with more significant value increases on the horizon.