Housing value growth rates around 10 per cent across Queenstown, Dunedin, and Central Otago remains about double the national annual average, as much of the rest of the country is in single-digit growth.
Dunedin is bucking a national trend, as investors seek residential properties to buy, as rentals for families.
South of Waitaki, nearly all of the southern housing areas are well above the national average of 5.1 per cent growth, compared with Quotable Value data from July last year. Only Gore’s 2.6 per cent growth is below the national average.
Low to mid-value houses across the country, including Dunedin, were selling at a faster rate, due to continued demand from first-home buyers, QV general manager David Nagel said.
“Our analysis shows most property transactions are taking place at the low-to-medium price bracket, a section of the market where value growth remains comparatively strong, despite relatively static average house values across the country,” he said.
QV’s Dunedin-based property consultant Tim Gibson said the rate of value growth had dropped and quarterly growth rates were well below the annual growth rates.
“We believe this is mostly to do with the usual winter slowdown and a period of consolidation after a sustained period of growth,” he said.
However, Gibson said low-to-mid value properties continued to attract plenty of demand.
Mountain Scene – 1st August 2018