QV unveils house values - up 17pc in Auckland

Aucklanders are being forced to go elsewhere to buy due to steep price rises. Photo / Doug Sherring

• Auckland houses: values up 53.7% since 2007
• Up 17% annually, up 5.5% in 3 months
• Not enough for sale to meet buyer demand
• Aucklanders go south to snap up places
• 'Erosion' of discount applied to some Auckland titles
• Auckland property buyers 'flocking' south

Auckland house-hunters are being driven south as the city's red-hot market drives values up 53.7 per cent since 2007, 17 per cent annually and 5.5 per cent in the last three months alone.

QV has just released its latest data and national spokesperson Andrea Rush said people were being forced to go elsewhere to buy due to those steep rises.

"Large numbers of Aucklanders are flocking to buy property in Tauranga, Hamilton and the western Bay of Plenty resulting in rising values in these areas. There are reports that of those present at open homes in Tauranga, as many as 60 per cent are regularly from Auckland, while around 15 per cent of all buyers in the Hamilton market are now from Auckland," she said.

James Wilson, QV homevalue Auckland registered valuer, said not enough properties were for sale to satisfy buyers and people are disregarding some land tenure issues - like cross leased titles - and traditional discounts which usually applied to such properties and made them cheaper were being "eroded" in some parts of the city, he said.

The QV House Price Index average value for Auckland City (suburbs in the ex-Auckland City Council territory) now stands at $1,003,144.

Values are up 6.1 per cent in the last three months in Auckland City-South: Blockhouse Bay, One Tree Hill, Sandringham, Mt Albert, Wesley, Three Kings, Mt Roskill, Otahuhu, Onehunga and Mt Wellington. Values in those areas are up 21.4 per cent year on year.

Values rose 4.9 per cent in the last three months in Auckland City-East: St Johns, Meadowbank, Glen Innes, Point England, Orakei, Kohimarama, Mission Bay, Ellerslie, St Heliers and Greenlane.

Values rose 4.4 per cent 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.

Waitakere City values rose 7.1 per cent over the past three months and 19.4 per cent year on year. The average value in the Manukau City region is now $699,425, QV said.

Manukau-Central values rose 7 per cent and values in Manukau-North West and Manukau East were up 5.4 per cent.

The average home value in the North Shore City area is now $988,124.

North Shore-Onewa values increased 6.5 per cent over the past three months. That area takes in Glenfield, Marlborough, Hillcrest, Northcote, Chatswood, Birkdale, Birkenhead central and Beachhaven.

North Shore-Coastal values are up 5.2 per cent. That area takes in Westlake, Crown Hill, Milford, Takapuna, Forrest Hill, Torbay, Browns Bay, Rothesay Bay, Campbells Bay, Mairangi Bay, Murrays Bay, Devonport, Cheltenham, Belmont and Narrow Neck.

North Shore-North Harbour values rose 5.5 per cent over the same period. That area is Okura, Albany, Unsworth Heights, Meadowood and Greenhithe.

Papakura District values continued rose 6.3 per cent over the past three months.

Franklin District values rose by 4.8 per cent and Rodney District values were up 3.3 per cent.

Wilson said last month saw a continuation of the strengthening market conditions across the entire Auckland region.

"Although market activity levels remain buoyant, there is a severe shortage of properties listed for sale, increasing competition amongst buyers which is further adding to upward pressure on values. High levels of speculation are evident across all segments of the market as well as increasing evidence of the land-banking of properties which may offer the potential to sub-divide under the Proposed Auckland Unitary Plan."

"Developers are reporting high demand for new residential dwellings as part of 'house and land' packages within new developments. This is particularly evident for vacant sites within such developments which allow people to design and build without being tied to layouts provided by mass build companies. However, buyers of these sites do need to be aware of the restrictions imposed by covenants which are often placed on titles within such developments," Wilson said.

"Buyers also appear to be willing to disregard the land tenure of a property in order to secure a well presented dwelling in a desirable locality meaning the traditional discount applied to cross lease property has been nearly eroded in some areas," Wilson said.

Labour's housing spokesman Phil Twyford said the new figures were further evidence the city's housing crisis had spiralled out of control.

"In spite of constant announcements and photo opportunities from Housing Minister Nick Smith, all the indicators show Auckland's housing troubles are getting worse by the day," he said.

He highlighted the report's finding that increases in affordability in the regions could not outweigh the huge rise in unaffordability in Auckland - which the authors call the "Auckland effect".

Mr Twyford said Government's response to the problem was too piecemeal, and he said ministers needed to take further steps such as a crack-down on foreign speculators and a state-sponsored house building programme.

Read Massey University's Home Affordability report here: