Auckland rises despite house market cooling

Housing values are still rising but they are growing at a slightly slower rate, according to Quotable Value NZ.

However, Auckland City bucked the trend.

Property values for the three months to July rose 11.1 per cent as against the same period last year - down from 11.5 per cent growth in the three months to June.

The average New Zealand sale price was $336,272 for the period.

QV said the gradual slowdown in property price growth had been evident for six months.

Glenda Whitehead, of QV Valuations, said annual percentage increases continued to fall, as they had done all year, and the average sale prices remained just above the levels achieved last month.

"In general it is felt [that] the market is on a plateau at the moment, or at least showing no significant movement one way or other."

In many suburbs a limited amount of property was on the market which could either reflect the usual winter slowdown or prevailing economic conditions, she said.

But two of the areas that led the market in the early part of the property boom - Auckland City and Tasman - are again enjoying rising growth rates.

Auckland City values have increased by 7.5 per cent (6.8 per cent in June) and Tasman 8.7 per cent (7.8 per cent). A year ago, they were growing at 5.4 per cent and 2.7 per cent respectively.

Activity continues to soften in the cities and in districts of wider Auckland.

Gisborne property values rose 21.5 per cent, Whangarei by 20.9 per cent, Invercargill by 12.2 per cent and New Plymouth by 8.3 per cent.

Demand remains relatively strong in areas considered to have long-term growth potential, and where purchasers are not looking for an immediate capital gain, QV said.

Average sales prices in Hamilton were $315,564, Wellington City $428,049, Christchurch $325,801 and Dunedin $254,986.

- NZPA