Auckland property market shows signs of life

REINZ chief executive Bindi Norwell says there are signs of some renewed confidence returning to the Auckland market. Photo / Getty Images

National property values rose 1.7 per cent in the year to June and would have been up 6.5 per cent had Auckland been stripped out, the Real Estate Institute of New Zealand's latest House Price Index shows.

The index rose to 2,753 last month, up 0.3 per cent from May. Excluding Auckland, the monthly rise was 0.4 per cent.

The annual increase of 1.7 per cent contrasts with the 3.8 per cent annual growth reported this time last year, REINZ noted.

Looking around the country, 11 out of 12 regions saw an annual increase in the index level. The only region not to experience an increase was Auckland, which posted an annual decrease of 3.5 per cent to 2,784.

REINZ chief executive Bindi Norwell said that while Auckland fell on an annual basis, the region's index did lift 0.3 per cent from April to May and 0.1 per cent from May to June.

"While it's too early to call this a trend, it is certainly the first signs of some renewed confidence returning to the market," she said.

Buyers may also be more confident now the government has taken a capital gains tax off the table and given interest rates are at record lows, she said.

REINZ opted to publish the HPI measure, which looks at total housing market activity as opposed to a median or average price, separately. Its remaining monthly data, including the median price, sales volumes and days to sell, will be published on Friday.

REINZ says the index draws on a series of metrics to adjust sale prices for house attributes - such as land area, floor area, and the number of bedrooms - which can influence them. It is intended to provide a single, more accurate measure as a median or average sale prices can be skewed by more activity at the high- or low-end of the market.

Southland reported the strongest property value growth, with a 20.2 per cent annual increase to a record high of 3,049. This was followed by Manawatu-Wanganui with an annual growth rate of 18.3 per cent to 3,089 and Gisborne/Hawke's Bay with a 9.1 per cent annual increase to 2,738. The capital city of Wellington posted a 6.5 per cent lift to 2,707.