Property Prices Rise in More Than One in 10 NZ Suburbs
According to CoreLogic New Zealand, despite challenging market conditions throughout much of Aotearoa New Zealand, numerous suburbs have shown resilience by experiencing value growth over the past three months.
Keith Niederer, NZ Network Manager at Raine & Horne, said this positive trend suggests that the real estate market may be nearing the bottom and preparing for a potential upturn.
CoreLogic NZ’s interactive Mapping the Market tool reveals detailed insights into the three and 12-month change in values across 917 suburbs nationally.
The data shows that 128 suburbs increased in value in the past three months, and 71 recorded an increase in the median value of at least 0.5%.
In the Northland Region, the Kaipara District had two top-performing suburbs over the past quarter, with values in Maungaturoto and Kaiwaka up 4.7% and 3.5%, respectively.
CoreLogic NZ Chief Property Economist Kelvin Davidson said the quarterly measure of housing value movements was a timelier measurement of the country’s property market downturn.
“Over the past year, 57 suburbs saw values rise, with 33 of them increasing by at least 2%, with the majority located in the lower half of the South Island. However, when you zoom in to the past three months, that figure increases to 128 suburbs where values have risen, and more than half of those are up by at least half a percent,” Kelvin said.
“The trend shows house price falls have effectively levelled out and provides further albeit tentative evidence that the downturn may be winding up, for better or worse, depending on your perspective.
In Auckland, for example, while the data for 12 months is still trending down, CoreLogic reports that 14 suburbs recorded a rise of at least 0.5% in the past quarter.
Red Hill was the best-performing suburb in the three months to June, with values rising 2.5%. Further north and Hamilton recorded similar results. However, four suburbs recorded a subtle rise in value, including Baverstock, Hamilton East, Flagstaff and Harrowfield, over the last quarter.
In contrast, the Christchurch market, as noted by CoreLogic, has demonstrated resilience. Wainui, in particular, has seen a rise in median property values of 3% over the past year.
All other suburbs saw values fall over the past year, though areas such as Aranui, Beckenham, and Akaroa declined by less than 1%, and the weakest suburb, Spreydon, has seen a drop of 9.3%. Over the past three months, 11 suburbs saw values rise, with Templeton the strongest, up 1%.
Keith Niederer expressed his delight at the CoreLogic report, especially after a challenging period for the New Zealand real estate market. He emphasised the positive news as Raine & Horne continues to expand in the country.
Three new offices, Raine & Horne Kaitaia, Paihia, and Mangonui, were opened this month under the leadership of experienced real estate specialist Gerard Ponsonby.
“It’s great to see these green shoots of positive news, and the timing couldn’t be better as Raine & Horne continues its expansion in New Zealand with more offices set to join us in 2023,” Keith proudly declared.