Downhill from here? Signs Auckland's property market has reached peak point

New data shows Auckland house values have risen 20.4 per cent in the past year. Photo / Getty Images

Behaviour by Auckland's housing speculators indicates the property market could be about to reach peak point.

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland.

Jan O'Donoghue, QV home value northern operations manager, said speculator trading patterns showed signs that they thought the market could soon turn.

"QV stats show more than 2000 homes have been bought and sold more than once over the past 12 months.

"Often, nothing has been done to improve these properties at all and speculators are just on-selling it and taking the capital gain.

"Rapid on-selling can be a sign that some speculators may believe we are close to reaching the top of the market and decide they have made enough profit," she said.

QV has just released its national monthly data which showed Auckland house values have risen 20.4 per cent in the past year to reach a new average current value of $874,851 - up 60.1 per cent since the last peak in 2007 and up 5.6 per cent in the last three months alone.

"There continues to be a shortage of listings on the market and while we are already seeing more homes coming onto the market with the coming of spring, these are selling quickly.

"There is continued evidence of high levels of speculation in the Auckland market and we are seeing more examples of price taking where the same properties are selling two or three times in a one year period," Jan O'Donoghue said.

The Super City region has continues to show rapid values increases, well above this time last year, QV said. Activity is particularly high at the lower end of the market for properties under $1 million.

QV National Spokesperson Andrea Rush said supply and migration were the main market drivers.

"Values in Auckland continue to rise rapidly at the fastest rate since mid-2004 with the market there continuing to be driven by high net migration and lack of supply.

"The upward trend in values seen in upper north island centres near Auckland is also continuing with the Hamilton market now accelerating and values in Tauranga, Whangarei, Hastings, and the Hauraki District continuing to rise."

See how much your area has gone up

North Shore coastal (Westlake, Crown Hill, Milford, Takapuna, Forrest Hill, Torbay, Browns Bay, Rothesay Bay, Campbells Bay, Mairangi Bay, Murrays Bay, Devonport, Cheltenham, Belmont and Narrow Neck) values average $1,174,413, up 18.4 per cent in the last year.

North Shore Onewa (Glenfield, Marlborough, Hillcrest, northcote, Chatswood, Birkdale, Birkenhead central and Beachhaven) values average $845,538 up 24.6 per cent in the last year.

North Shore North Harbour (Okura, Albany, Unsworth Heights, Meadowood, Greenhithe) values averaged $845,538, up 24.6 per cent in the last year.

Values in Auckland city central (Point Chevalier, Grey Lynn, Epsom, Remuera, Parnell, the central business district with its many apartments, Arch Hill, Ponsonby, Herne Bay, Newmarket and Mt Eden) average $889,787, up 17.3 per cent annually.

Auckland city east (Stonefields, St Johns, Meadowbank, Glen Innes, Point England, Orakei, Kohimaramara, Mission Bay, Ellerslie, St Heliers and Greenlane) values now average $1.282,105, up 19.9 per cent annually.

Auckland city south (Blockhouse Bay, One Tree Hill, Sandringham, Mt Albert, Wesley, Three Kings, Mt Roskill, Otahuhu, Onehunga, Mt Wellington) averaged $945,957, up 23.5 per cent annually.

Auckland city islands (Waiheke, Rakino, Great Barrier and the outlying islands) values $873,774, up 12.1 per cent annually.

Manukau East (Bucklands Beach, Pakuranga, Highland Park, Botany Downs, Meadowlands, Burswood, Whitford, Clevedon, Beachlands, Maraetai, Howick, Dannemora, Summerville) values average $956,068, up 18.7 per cent annually.

Values in Manukau central (Redoubt Road precinct, Manurewa, Hill Park, The Gardens, Weymouth, Wattle Downs, Otara, East Tamaki, Wiri) average $575,372, up 24.6 per cent annually.

Manukau north west (Mangere Bridge, Mangere, Mangere east and Papatoetoe) values average $620,426, up 24.9 per cent annually.

Rodney Hibiscus Coast (Waiwera, Hatfields Beach, Orewa, Red Beach, Stanmore Bay, Stillwater, Manly, Tindalls Bay, Army Bay, Gulf Harbour, Silverdale, Albany Heights, Whangaparoa shops precinct) values average $742,137, up 8.4 per cent annually.

Rodney north (Wellsford, Warkworth, Mathesons Bay, Leigh, Snells Beach, Omaha, Mahurangi east and west, Kawau Island, Helensville rural, Kumeu rural, Dairy Flat, Pakiri, Riverhead, Huapai) values average $763,926, up 10.8 per cent annually.

Values in the entire West Auckland, labelled Waitakere, now stand at an average $703,242, up 23.9 per cent in the last 12 months. That is the figure QV supplies for a large region which includes Glen Eden, Glendene, Green Bay, Henderson, Hobsonville, Kelston, Laingholm, Massey, New Lynn, Piha, Ranui, Sunnyvale, Swanson, Te Atatu Peninsula, Te Atatu south, Titirangi, West Harbour, Bethells Beach, Herald Island, Lincoln, Oratia, Westgate, Whenuapai and the Waima/Woodlands Park areas.