14th February 2005

Annual house prices fall in Auckland

QV's new monthly property statistics confirm a cooling in some previous hot spots.

Other areas of New Zealand are still experiencing strong growth in prices.

New Zealand residential properties are estimated to have increased in value by 13.5 % over the year to January 2005. For the first time since the current boom began, QV is reporting a decline in two areas.

Nelson City (-3.1%) and Central Auckland City (-1.8%) are both showing annual price falls. Two other one-time hot spots, Tasman (0.8%), and Queenstown Lakes (1.5%) are showing little growth.

The decline in property values in Auckland is for the central city area only. Modest growth was reported in the Eastern (6.3%) and Southern (4.7%) suburbs.

"The trend of the past year is continuing with those areas that peaked first slowing significantly, to the extent that we're even seeing some decline in property value in two areas," says Blue Hancock of QV Valuations. "However, many regions in New Zealand that were late to experience the boom times are still seeing good growth in property values," said Mr Hancock.

"If this trend continues, we expect the areas which were initially slow to follow the cycle upward will begin to also slow down," Mr Hancock said.