Values across the whole Wellington Region rose 7.4% in the year to July and increased 1.5% over the past quarter and the average value is now $651,725.
Wellington City values increased 7.1% year on year and 1.9% over the past three months and the average value there is now $775,711. Meanwhile, values in Upper Hutt rose 8.9% year on year and 0.4% over the past three months; Lower Hutt rose 5.5% year on year and 0.6% over the past quarter; Porirua rose 9.9% year on year and increased by 3.0% over the past quarter. Finally, the Kapiti Coast rose 9.4% year on year and 0.9% over the past three months.
QV Wellington Senior Consultant David Cornford says: “Overall, Wellington is currently seeing relatively stable values and it’s now a much more balanced market after several years of strong growth.
“Mid-winter has seen market activity fall away, which is a regular occurrence during the Wellington winter. However, given the low number of current listings, we’re expecting greater buoyancy in spring.
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“The lower-to-mid section of the market - those properties valued under $750,000 - have experienced the greatest value growth over the last 12 months. This is a result of strong activity from first home buyers, who are snapping up relatively affordable properties in Wellington’s outer areas such as Lower Hutt, Upper Hutt and Porirua. Porirua, in particular, has performed well with around 3% growth over the last 3 months.
“There has been a noticeable drop in value growth at the upper end of the market– those priced above $1,000,000 – as affordability challenges effectively put the brakes on.
“Much like Auckland, we’re seeing some higher value properties failing to sell at auction or tender and then selling several weeks later through negotiation. Multiple offer scenarios are now less commonplace, which is giving buyers the time to be more considered with their offer price and terms. Evidently, we’re seeing many buyers ask for building and LIM reports prior to purchasing. In these tighter market conditions, it’s the well-maintained and cleverly marketed properties that continue to sell well.
“Market conditions appear stable, with low levels of listings and steady demand resulting in relatively modest growth in values. However, we’re also seeing record low interest rates, relatively strong inward migration and a buoyant local economy, so we’d expect these key market drivers to support value growth across some suburbs and segments of the market throughout spring.
“Over the medium-to-long term, the government’s KiwiBuild initiative – if successful – is likely to ease demand from first home buyers and free up rental stock although its impact won’t be felt for several years."
