City property market showing steady rise

Last updated 12:00 10/08/2012

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Steady as she goes is the saying which continues to sum up the Palmerston North property market, with more steady rises in values and small drops in time to sell.

Quotable Value puts the price of an average property in the city for the three months to July at $292,511.

Properties in the city are estimated to be worth 2.2 per cent more than they were a year ago.

Real Estate Institute of New Zealand figures put the time to sell last month at 30 days, a 10-day improvement on July 2011.

Values in most other provincial centres have failed to move far beyond the 2 per cent band, except for a 4.2 per cent drop in Gisborne.

Horowhenua values had a 4 per cent drop over the year to July.

QV research director Jonno Ingerson said Auckland and Christchurch were the main drivers of higher values nationally.

But low mortgage interest rates were seeing more people head into the market, helping push values up.

"This is starting to encourage property investors and small developers back into the market, although investors are now careful to ensure their purchases return a decent yield, rather than relying on capital gain.

Mr Ingerson said buyers having more confidence was helping to create a sellers' market.

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- Manawatu Standard

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