Property value growth sees lift

Property value growth in South Wairarapa lifted in 2012 and put the district at the head of the pack for the region, according to the latest QV figures.

QV research director Jonno Ingerson said the average current value in December of South Wairarapa residential properties was $284,751 and the district posted a change in property value growth of 2.2 per cent over the past year and 0.6 per cent in the past three months.

The average current value of residential properties in Masterton last month was $235,304 and the change in property value growth was -1.8 per cent in the past year and -1.2 per cent in the past three months, Mr Ingerson said.

In Carterton last month the average current value of residential properties was $245,105 and the change in property value growth was -0.4 per cent in the past year.

However, property value growth in the town rallied at the close of the year and was up 1.6 per cent in the past three months, he said. Figures for Masterton, Carterton and South Wairarapa showed the change in property value growth for the three districts since the market peak in 2007 was -18.7, -11.2 and -16.9 per cent respectively.

Mr Ingerson said property value growth in each of the three districts had dropped up to 20 per cent during 2008 and 2009, falling "further than the rest of New Zealand" over the same period.

The districts recovered to some extent in late 2009 and early 2010 before dropping again later that year "like the rest of the country".

Since early 2011 values have been more or less flat in Masterton, he said, and had fallen in the district in December despite some variability late last year.

Due to a lower number of sales over the past few years, the house price index in Carterton and South Wairarapa had showed "a little more volatility", he said.

"However, the general trend in Carterton has been one of very slow increase since mid 2011."

The general trend for Carterton was "flat to slightly increasing" despite the index volatility, he said, while South Wairarapa posted a mini recovery in values in the first half of last year.

Some gains were lost in the latter part of last year, he said, but values in South Wairarapa had still risen on the start of 2012.

"The housing market in Wairarapa like other similar areas around the country is affected by the strength of the local economy, and by the strength of the nearby large city, in this case Wellington, from where people may come to buy holiday homes or weekenders, or investment properties.

"The holiday home and investment markets have taken a hit since the global financial crisis and the Wellington economy is also subdued as the threat of public service restructuring still hangs over many people's heads," Mr Ingerson said

"While not everyone in Wellington works for the public service, it does have a dampening effect on the overall market.

"Generally, the housing markets in all three areas [in Wairarapa] is flat and likely to stay that way for the foreseeable future."

National residential property values had risen in December with values up 1.5 per cent over the past three months, 5.7 per cent in the past year, and 2 per cent up on the market peak of late 2007. Palmerston North increased the most at 3.6 per cent.