Residential property prices still on the rise

JACQUIE WEBBY
Last updated 05:00 13/03/2014

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The values of residential properties in South Canterbury and Waitaki are on an upward trend, according to the latest figures released by Quotable Value New Zealand.

The figures relate to February 2014 and compare 2014 with the same period in 2013.

In Timaru, the average value of a residential property has seen a steady increase of 5.5 per cent, up from $260,850 in February 2013 to $275,215 last month.

Also on the rise is the Mackenzie District, from $297,795 to $298,414 (up 0.7 per cent); Waimate, from $178,571 to $198,837 (up 11.3 per cent); and the Waitaki District, from $211,946 to $217,896 (up 2.8 per cent).

The Real Estate Institute of New Zealand (REINZ) property market report says in February 2014, 49 Timaru residential properties sold for a local area median price of $288,000 and took 44 days to sell.

In North Otago, the local area median sale price for the same period was $223,500, with 39 properties sold, taking an average of 41 days.

Property Brokers South Canterbury manager Hamish Niles said the property market in South Canterbury and Waitaki was very positive.

"In general, South Canterbury is tracking well and there is also a strong demand for rentals, which is a reflection of the development at Clandeboye and PrimePort, Timaru.

"We are seeing a slight easing of the market with the new loan-to-value (LVR) regulations, but there are still some banks that are able to offer lower deposit mortgage finance. There are also fewer first-home buyers with pre-approved loans."

Mr Niles said listings in parts of South Canterbury, including Waimate and Geraldine, are in short supply.

"It is a similar story in Timaru. In Waitaki, there is a confidence in the market with the increased dairy payout and this will have a positive effect as it flows through in places like Oamaru."

Nationwide, the latest property value index shows that residential values for February have increased 9.3 per cent over the past year and 1.8 per cent over the past three months.

This means they are now 13.1 per cent above the previous market peak of late 2007.

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- The Timaru Herald

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