PHOTO: CoreLogic December House Price Index
Summary:
– The last CoreLogic House Price Index (HPI) for 2020 revealed the NZ property market showed no signs of letting up through the final month of the year, with near-record growth registered across the country.
– Nationwide property values continued to accelerate over the month, increasing by 2.6%. This takes growth in the final quarter of the year to 6.1% – a rate not bettered since the three months ending February 2004 (6.6%).
– In Tauranga the quarterly rate of growth exceeded ten percent (10.2%), which is an extraordinary figure and something last witnessed in May 2004 (10.5%), when the average property value was just over $350,000. That average value has now increased to $876,122 – up from less than $800,000 at the end of September 2020.
– The quarterly rate of growth in Masterton is yet another step higher at 17.4%, while other provincial centres to exceed 10% quarterly growth include Whanganui (11.2%), Porirua (10.9%) and Gisborne (10.4%) with Palmerston North just shy at 9.6%.
– Looking back to the start of the year, property values in Gisborne have increased by more than thirty percent (30.4%), which has seen the average property increase in value by almost $120,000 to smash the half million dollar mark at the end of December ($514,212).
– The factors influencing such a rapid rate of capital gain include record low mortgage rates and tight inventory which has seen demand outweighing supply. Stronger than forecast economic conditions have buoyed consumer sentiment at a time of unprecedented global uncertainty.
Main Centres
| Change in property values | Average Value | ||||
| Month | Quarter | Annual | |||
| Auckland | 2.4% | 6.0% | 9.1% | $1,142,700 | |
| Hamilton | 2.3% | 4.1% | 11.7% | $674,562 | |
| Tauranga | 6.8% | 10.2% | 14.8% | $876,122 | |
| Wellington Area | 3.2% | 8.1% | 15.4% | $861,794 | |
| Christchurch | 1.6% | 3.4% | 6.2% | $539,561 | |
| Dunedin | 1.9% | 6.4% | 13.1% | $582,269 | |
Provincial Centres (ordered by descending quarterly growth rate)
| Change in property values | Average Value | |||
| TA | Month | Quarter | Annual | |
| Whanganui | 6.1% | 11.2% | 24.9% | $416,417 |
| Gisborne | 3.5% | 10.4% | 30.4% | $514,212 |
| Palmerston North | 3.4% | 9.6% | 20.3% | $581,944 |
| Rotorua | 4.3% | 8.8% | 19.2% | $595,638 |
| Kapiti Coast | 4.7% | 8.4% | 18.3% | $746,081 |
| Hastings | 2.0% | 7.3% | 13.5% | $640,232 |
| Whangarei | 2.7% | 6.4% | 14.4% | $627,357 |
| Napier | 3.7% | 6.4% | 14.0% | $659,947 |
| Queenstown | 1.3% | 5.7% | 0.3% | $1,206,301 |
| New Plymouth | 1.9% | 5.4% | 11.8% | $554,334 |
| Invercargill | 2.5% | 5.3% | 13.5% | $379,483 |
| Nelson | 2.3% | 4.8% | 9.2% | $697,658 |
READ THE FULL REPORTS HERE: December 2020 CoreLogic NZ House Price Index 5 Jan 2021
Corelogic NZ House Price Index – Residential Price Movement DEC 2020
