Propertyscouts Dunedin

Property values stablise - 8th Feb 2011

Property values stablise The latest information from QV shows that residential property values for all New Zealand have stabilised according to the QV indices for January, but there remains considerable variability between areas.

While nationwide values have been gradually declining over the past few months, the rate of this decline has been slowing, and values remained unchanged between December and January. Although recent values have stabilised, this time last year values were still increasing and as a result the year on year comparison dropped slightly to 1.5 percent from the -0.9 percent reported last month. Values are now 5.8 percent below the market peak of late 2007.

QV’s Residential Price Index for January shows that property values in Dunedin have decreased by 3.7%. Values have continued to decline over the past couple of months.

Mr. Tim Gibson of QV Valuations said; “The start of 2011 has seen a cautious residential property market in Dunedin City. Falling values and sales volumes have been experienced across all suburbs, except for central and northern city where values have remained steady. QV’s statistics are also showing sales volumes are 10% less over the whole city than for the same recorded period in 2010”.

“We have seen some optimism in the residential market for January with open home enquires being strong. However, there has been a shortage of good quality homes listed in Dunedin city. This has seen values in the top-end of Dunedin’s residential market steady in comparison to lower price brackets. This is one of the reasons why values in central and northern Dunedin are performing better than elsewhere” Mr. Gibson said.

Mr. Gibson said “It appears that the market has become more weighted in favour of the purchaser. There are reports of numerous sale prices being renegotiated following problems identified in a LIM (Land Information Memorandum) or builder’s reports, where in a stronger market the vendor would be reluctant to renegotiate.”

“Overall, we will have to wait-and-see what value trends will be for 2011, as it is currently a bit too soon to be making any major prediction” Mr. Gibson said.

QV’s Residential Price Index is calculated using sales data from the 3 months leading up to the month being reported. It is not the same as the average sales price, which fluctuates in line with the mix of properties selling in upper or lower price brackets. The average sales price for Dunedin in January was $267,716.

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