QV: Property recovery shortlived

Photo / Martin Sykes

The first signs of a recovery in national property values appear to have been shortlived, as values fell back in Auckland and Wellington during March, Quotable Value said.

The average New Zealand sales price fell $11,000 to $400,656 in the three months to March, when compared with last month, while values nationally are now 2 per cent below the same time last year.

Glenda Whitehead of QV Valuation said the underlying statistics suggested the Auckland market remained stable, but a prediction of limited short-term value growth meant the market lacked urgency.

"Many only act if a property meets the majority of their criteria," she said.

QV.co.nz research director Jonno Ingerson said the levelling of property values in the last few months was largely driven by a slight recovery in values in both Auckland and Wellington.

"These first signs of a possible recovery in values were shortlived as both Auckland (down one per cent) and Wellington (down 2.9 per cent) slid back again in March.

"With the uncertainty created by the Christchurch earthquake, and the low level of sales activity in previous months, it is reasonable to expect that there may be some volatility in the market for a few months," said Ingerson.

While there had been a significant slowdown in the number of sales in the Christchurch market since late February, there had been strong interest for property in areas not affected bt the earthquake, such as the North Western suburbs.

"The fact that the market has some traction is very encouraging, but there is still a long way to go. The demand is generally coming from families wanting to "get on with it," QV's Christchurch spokeswoman Melanie Swallow said.

None of the provincial centres recorded property values above the same time last year, with values falling between 6.2 per cent (Whangarei) and Queenstown Lakes (1.7 per cent).

- NZ HERALD ONLINE