Property values still sliding in some provincial, rural areas

Photo / Hawkes Bay Today

Residential property values stabilised in January, but continued to slide in some provincial and rural areas, Quotable Value said.

Values on average are now 1.5 per cent below the same time last year and 5.8 per cent below the market peak of late 2007.

Qv.co.nz research director Jonno Ingerson said while nationwide values had been declining over the past few months, the rate of decline was slowing and nationwide values remained unchanged between December and January.

However there remained "considerable variability" between areas, he said.

"Values across the combined main centres have been stabilising, while across combined provincial and rural areas values have continued to slide," he said.

There was also some variation in values between the main cities, with Auckland values having been stable for several months. Values there are now only 0.6 percent below the same time last year, Ingerson said.

In Wellington values have been rising since October after declining steadily in the six months prior and are now 2.5 per cent below last year, he said.

Christchurch was the only main centre where values were above the same time last year at 0.3 per cent, as demand for houses in areas undamaged by the earthquakes lifted prices.

The remaining main centres "have generally declined over the past year" and values in Hamilton are now 3.4 percent down on last year.

In Tauranga values are down 2.2 percent, and Dunedin down 3.7 per cent.

Ingerson said it was still to early to tell whether the property market in 2001 would be any different to last year.

Values were below the same time last year in: Whangarei, down 4.4 per cent, Rotorua, down 3.3 per cent, Gisborne, down 5.2 per cent, Wanganui, down 2.6 per cent, Palmerston North, down 3.3 per cent, Queenstown Lakes, down 3.3 per cent, and Invercargill, down 3.8 per cent.

Values were slightly below last year in Hastings, down 1.6 per cent, New Plymouth, down 1.5 per cent, and similar to last year in Napier down, 0.1 per cent.

The only centre to remain above last year was Nelson where values were up 1.4 per cent.

- NZ HERALD ONLINE