QV statistics reflect property downturn

Statistics released today by QV Valuations - a division of Quotable Value New Zealand - confirm an overall picture of a stagnant residential property market with falling volumes of sales and limited changes in values.

New Zealand wide, house prices fell an average of 0.4 per cent for the quarter ended March 2000 with the number of houses sold during the period also falling by 17 per cent, compared to the same quarter in 1999.

QV spokesman Nigel Jeffries said that there were considerable regional variations in the sales trends with the Wellington region performing strongly against national price averages.

“While the volume of sales in the Wellington urban area has fallen in line with national trends, residential property values have continued their recent positive movements,” Mr Jeffries said.

“This is in contrast with the Auckland and Christchurch markets where both the volume and value of sales fell compared with the same period last year.”

Mr Jeffries said there were a number of factors currently influencing the market including the upward movement of mortgage interest rates, a decline in the expectation of future property values and an uneven distribution of economic growth around the regions.

“The performance of the Wellington market can be attributed in part to the above average economic growth exhibited by the region over the past three years with the reverse being the case in South Island areas.

“While the rural sector has been experiencing an upturn due to improved commodity prices and the value of the dollar, these effects will take some time to impact on house prices in provincial centres.”

Mr Jeffries said that while there remained an overall lack of confidence in the future direction of the property market, the trends displayed by the latest figures were likely to continue.

“According to QV’s analysis, the short term outlook for the market is for overall low turnover of residential properties and limited changes in values.”

ENDS

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