PHOTO: New Zealand property market.FILE
The latest data from the CoreLogic House Price Index (HPI) shows nationwide values increased by a further 1.8% over July. This was the same rate of growth recorded in June, but down on both May (2.2%) and April (3.1%), and shows while we’re likely to be past the peak growth rate, a market this size can take some time to slow.
Analysing the CoreLogic HPI quarterly change in values, the slowdown becomes very apparent, with the nationwide growth figure dropping from 7.2% at the end of June to 5.9% at the end of July. This trend of deceleration is also clear across almost all main urban areas.
KEY POINTS:
- The slowest rate of growth among our largest six cities was Dunedin with an increase of 4.5% in the three months to the end of July. Property values have more than doubled there in the last six years, rising from $296,000 in July 2015 to $646,000 today. However sales turnover in Dunedin is slowing, with 30% fewer sales in June 2021 than in June 2020.
- Low listings can have a suppressive effect on sales volumes, however in Dunedin in July there were 21% more properties listed for sale than the same time in 2019, while all other main centres still remain at least 30% below levels seen in 2019.
- Centres seeing a significant reduction in quarterly growth include Gisborne (2.1%, down from 10.2% at the end of June) , Kapiti Coast District (3.3%, down from 10.6%), Rotorua (1.9%, down from 6.9%) and Napier (2.8%, down from 7.1%)
- The only city to experience a lift in quarterly growth was Nelson, with 5.0% growth to the end of July, up from 4.8% for the three months to the end of June.
Highlights from the CoreLogic HPI data for July (national, main centres and provincial centre drops in quarterly value):
| Change in property values | Average Value | |||
| Month | Quarter | Annual | ||
| New Zealand | 1.8% | 5.9% | 24.8% | $922,421 |
| Auckland | 2.1% | 5.0% | 21.6% | $1,310,305 |
| Hamilton | 0.4% | 6.1% | 26.8% | $805,503 |
| Tauranga | 1.7% | 7.9% | 25.3% | $994,708 |
| Wellington | 1.5% | 7.1% | 31.9% | $1,040,290 |
| Christchurch | 2.1% | 8.4% | 24.2% | $644,628 |
| Dunedin | 1.5% | 4.5% | 20.6% | $664,560 |
| Gisborne | 1.0% | 2.1% | 35.5% | $591,320 |
| Rotorua | -3.3% | 1.9% | 21.1% | $650,546 |
| Napier | 2.6% | 2.8% | 31.8% | $815,597 |
| Kapiti Coast | -0.2% | 3.3% | 35.0% | $910,925 |
READ THE FULL REPORT: CoreLogic July 2021 House Price Index Press Release