Ray White Now New Zealand - October Edition - Page 15

House prices continue to grow in Dunedin − albeit at a reduced rate compared to previous highs .
Residential property price rises have been kept to an average of just 2.7 per cent over the past three months in the southern city , with the average price of a home increasing by just 0.6 per cent in September to $ 689,582 . Annually , house prices are up 20.8 per cent on the same time last year .
QV area manager Tim Gibson said Dunedin ’ s residential property market had returned to normal quickly post lockdown . “ Value levels are still showing positive growth but at a lower rate of increase , especially compared to the first four months of the year when prices were increasing roughly four times faster than they are now ,” he said .
“ Well presented and well-located properties are selling particularly well right now , with homes at the top of the property ladder currently outpacing the entry-level in terms of value growth by about 2 per cent or more . Given the shortage of supply and high demand , we ’ re also seeing many more opting to upgrade their existing home , rather than purchasing an upgraded one .”
House prices continue to zig-zag in Queenstown , rebounding from a 0.7 per cent drop last month and a rolling threemonth average growth rate of 2.9 per cent to 6.4 per cent and 9.4 per cent respectively in September .
This is part of a larger trend that also saw house prices all-but level out in June , only to experience a sharp 3.5 per cent rise one month later . Then they dropped slightly in August , before climbing even more sharply in September .
In stark contrast to the volatility seen in Queenstown , residential property prices in Invercargill have remained remarkably consistent for five months in a row now .
Invercargill ’ s average house value increased by 3.7 per cent this quarter to $ 460,389 . Prices went up 1 per cent in September , following in the footsteps of similar rises within the range of 0.8-1.4 per cent in May , June , July , and August . Before that , prices increased by 4 per cent and 3 per cent in the months of February and April alone .
Local QV property consultant Andrew Ronald commented : “ Favourable borrowing rates are still encouraging purchasers to the market , stimulating market activity . There is limited stock available , which is helping to fuel price increases .
“ We continue to see strong demand for most property types . Investor activity has dropped off over recent months , although there is still strong demand from first-home buyers competing for homes within the $ 350,000 to $ 500,000 . There is also strong demand for building sites throughout the wider Invercargill locality with price levels strengthening considerably over recent months .”