Hamilton's house prices jump

NARELLE HENSON
Last updated 08:15 15/01/2014

Relevant offers

Hamilton's property values jumped 5.8 per cent in 2013, the latest figures from QV show.

The property valuing company said that while most main centres had had an increase of between 2.5 per cent and 4 per cent (excluding data from Auckland and Christchurch), Hamilton's had managed to break through the 5 per cent mark.

The north-east helped get it there, with homes increasing in value by 7.4 per cent, bringing the average value to $452,912.

Central and north-western Hamilton followed with growth of 5.5 per cent in the last 12 months, meaning an average property value for the area of $337,936.

South-eastern Hamilton prices rose 4.8 per cent, to give properties an average value of $331,505, while the south brought up the rear with growth of 3.9 per cent, bringing the average property value to $318,298.

Waipa also featured, with growth of 4.1 per cent bringing property values to $330,556. South Waikato had the only listed decrease in values for the region, a 2.3 per cent fall.

Average property values there now sit at $132, 571. Nationwide, property values increased 10 per cent year-on-year, with Auckland and Christchurch driving the growth.

Between Auckland's North Shore and Manukau, property values jumped by 15 per cent to 18 per cent, while Christchurch experienced growth of 12 per cent.

QV research director Jonno Ingerson said the loan-to-value ratio (LVR) restrictions brought in by the Reserve Bank last year were likely to have an impact into the first half of this year.

"It is likely that LVR caps will have a downward impact on property turnover and values.

"Outside of Auckland and Canterbury there isn't the same imbalance between supply and demand. There generally aren't multiple purchasers vying for the same property, so the LVR speed limits are likely to significantly decrease demand and therefore prices."

He said the other possible impact on the market would be the increase in mortgage interest rates tipped for later this year.

"This will increase the cost of servicing mortgages which in turn will lead to people borrowing less and therefore offering less for properties."

However, he said, property values could be expected to continue their rise throughout 2014 because of generally good economic conditions.

"Counter to these potential downward forces are increasing levels of business and consumer confidence, particularly in the big cities."

Ad Feedback

- Waikato Times

Comments

Special offers
Opinion poll

Did the Key v Cunliffe debate change your vote?

Yes, to Labour

Yes, to National

Yes, away from the two big parties.

No, I'll stick with Nats.

No, I'll stick with Labour.

I did not watch.

Vote Result

Related story: Support slips for National and John Key

Featured Promotions

Sponsored Content