Region's property values grow while Auckland and Wellington dip - QV

The AM Show 03/04/2019

Rotorua and Hawke's Bay are seeing significant property value growth, while Auckland and Wellington are slowing, the latest QV house price index shows.

General manager David Nagel says value growth in Rotorua is up seven percent in the last three months.

The average value there [is], $472,000 so perhaps benefiting from that ripple effect of the very high values that we're seeing in Tauranga and Hamilton cities.

There's been a lot of growth in Dunedin too, but prices there still pale in comparison to the cost of property in Auckland.

"The average value in the city is $451,000, that's still pretty affordable when you're comparing say Auckland which has got an average value in excess of a million dollars."

Wellington saw values rise by 1.9 percent, while Bay saw growth of 5.7 percent.

Nagel said low interest rates and steady migration are still a factor in the market. He expects the growth to slow.

"As we see the regions travel down their growth cycle I think we'll see that monthly growth, quarterly growth we've been seeing over the last six months actually peter out to very little growth at all."

Nationwide property values increased by 0.5 percent in the three months to March, while Auckland's growth decreased by 0.8 percent.

The AM Show / Newshub Reporters Katie Fitzgerald & Miriam Harris