PHOTO: RAWPIXEL/FILE
According to the most recent Quotable Value (QV) House Price Report, the average home value in New Zealand has experienced a modest increase during the initial three months of 2024. The March report indicates a national average home value rise of 2.2% to $924,734, marking a 1.9% increase from the same period last year and standing 13.1% below the market’s peak in late 2021.
James Wilson, the operations manager at QV, characterized the current state of New Zealand’s residential property market as “flat,” noting limited movement nationwide, predominantly upward but with some downward shifts. He attributed this to the housing market’s ongoing adjustment amidst significant economic challenges.
In this latest QV House Price Index, three primary urban areas – New Plymouth (2.1%), Palmerston North (0.6%), and Invercargill (0.7%) – recorded more growth compared to the previous index.
Wilson highlighted the abundance of properties on the market, providing prospective buyers with ample choices and exerting downward pressure on prices. However, he also noted that interest rates and credit constraints continue to pose significant challenges for all parties involved.
The recent surge in new property listings seems to have moderated the market, particularly in major centers like Auckland, where home values have remained stagnant in recent months.
Among the urban areas monitored, Queenstown saw the most significant growth this quarter at 2.7%, followed closely by Wellington and Christchurch at 2% and 1.5%, respectively. The report noted that the average home value in Queenstown has surged by 9.9% compared to the previous year and by 46.3% since the onset of the Covid-19 pandemic in New Zealand Aotearoa four years ago.
Blake Ngarimu, a senior consultant at QV, observed that Wellington’s market is largely influenced by first-home buyers, and values across the Wellington region are comparatively more affordable.