8 September 2009
New Zealand property prices are quickly returning to 2008’s levels, latest figures from valuation company QV show.
QV said that four consecutive months of residential price increases had helped recover the falls in value recorded throughout last year.
Countrywide the average price of a property in New Zealand is now 1.9% higher than in April, and just 2.8% below this time last year. However, prices still remain 7.9% below the late-2007 peak.
The average New Zealand property sale price increased to $385,426 (£162,200) in August from $382,758 (£161,050) in July.
QV Valuation manager Glenda Whitehead said: “The housing market is strongly driven by confidence, and that appears to be returning to the wider market. In most areas there are now many buyers actively searching for properties.”
Whitehead said a general shortage of New Zealand property listings, coupled with an increase in demand, was driving prices upwards. But she stressed that this is not the start of another boom.
“We believe that the recent increases in property values are a temporary surge caused by the imbalance between motivated buyers and a shortage of quality properties available for them to buy.
“If more properties come onto the market in spring, as expected, then this imbalance could be corrected and values should stabilise.”
See Also: Marc Da-Silva (269), New Zealand (44), Overseas property investment news (34)
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