Latest QV Update

Christchurch property trends as at July 2010

Property values in Christchurch increased by 5.9% over the past year (calculated over the three months ending June 2010 in comparison to the same period last year), down slightly from the 6.2% annual growth reported in May. The average sale price for the city increased from $359,597 to $364,131.

Melanie Swallow of QV Valuations said; “The budget announcements have had little effect on residential market activity at this point. Whilst completing market valuations for our investor clients they have indicated the intention to hold their portfolios for the time being”.

“Year-on-year value growth has slowed since May. This is because the recent value slide is working against a rise in values at the same time last year. This is being further driven by a low sales volume which is typical at this time of year” Mrs. Swallow said.

“The lifestyle sector of the market is very flat with a very low sales volume. Purchasers are weighing up the additional living costs of a lifestyle property, including commuting costs against urban based property. The decrease in house prices makes urban living more affordable at present” Mrs. Swallow said.

“Anecdotal reports from agents have indicated that vendors are making small reductions in their asking prices, although there is still divergence between vendor and purchasers expectations. Vendors are slowly accepting that there is plenty of competition in the market when competing for buyer dollars. If a property has any negative characteristics, or is not sharply priced, they can expect their property to sit for some time. Purchasers are being extra cautious and picky. This could be driven in part by tighter lending policy from financial institutions” Mrs. Swallow said.

“Builders report a small lift in activity, with people wanting to build now to avoid an increase in pricing from the rise in GST as of 1 October 2010. An increase in GST from 12.5 per cent to 15 per cent would add $6250 to the price of a new $250,000 home. Apart from a small increase in activity in the market for new homes, activity generally remains subdued” Mrs. Swallow said.

“The average sale price showed a small lift of $4,534 up from $359,413 recorded in May to $364,131 in June. This result does not indicate a recovery. The average sale price is easily skewed by a lower sales volume and the sale of higher priced properties in this period” Mrs. Swallow said.


Property values continue to ease

Property Property values across New Zealand have continued to slide in recent months according to the QV residential property indices for June.

Values are still above the same time last year due to increases in the second half of 2009, but the recent declines are closing the gap. Values are now 5.2 percent above last year, down from the 5.6 percent reported last month.

HOME BUYERS CHOOSE BETTER SCHOOL ZONES

Kiwi homeowners are inclined to buy a house not just for the lifestyle, size and location, but also to move into the right school zone, according to a survey commissioned by Wizard Home Loans.

Thirty-four per cent of the 1,500 homeowners surveyed said that they would sell up and move house in order to be in the school zone they want their children to be in.

"School zones are an increasingly important factor in Kiwi families' property purchase decisions," says Wizard Home Loans' National Director, John Grant.

"Moving home is not a small task, so our survey shows just how important getting into the right school zone is for the parents of our next generation," Mr. Grant said.

The survey also showed that 13 per cent of homeowners in New Zealand had already made the move to a new school zone.

"The fact that more than one in seven families have sold up and moved to gt a better education for their children is truly remarkable," he said.

"Kiwis' homeownership decisions are increasingly complex. It's about lifestyle and location sure, but for families it's integrally linked to providing a safe and prosperous future for their children."