Ag 06 august, 2015

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Thursday, Aug 6, 2015

Since Sept 27, 1879

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THE INDEPENDENT VOICE OF MID CANTERBURY

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Local house prices plateau – for now BY SUSAN SANDYS

SUSAN.S@THEGUARDIAN.CO.NZ

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House prices in Ashburton have plateaued, but record low interest rates and new incentives for migrants could push prices up leading into spring. The latest QV House Price Index shows Ashburton home values have decreased 0.5 per cent over the past three months, a plateauing in line with the Christchurch market, which has seen an increase of 0.5 per cent. The average house price in the district is $326,941, up just 1.7 per cent in the past 12 months. This figure compares to a median value for Christchurch of $475,322, up 3.1 per cent, and top South Island performer Queenstown Lakes $717,021, up 6 per cent, and Dunedin $298,928, up 2.8 per cent. The QV data shows nationwide residential property values for July

increased 10.1 per cent in the past year, the fastest annual rate since 2007. The Auckland market had seen a sharp upward trajectory and there was increased interest from Auckland investors in Wellington and Dunedin. QV national spokesperson Andrea Rush said net migration remained at record highs. New incentives for new migrants to move to areas outside of Auckland, coupled with the low interest rates, was likely to see continued upward pressure on home values leading into spring. However, Ashburton Property Brokers director Hamish Niles said new migrant levels in Mid Canterbury would depend on employment opportunities in the district, and he was not sure whether these would be affected by the dairy slump. And it would be hard to tell if record low interest rates would push prices up.

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The lower interest rates could however encourage more first home buyers, and those wanting to upsize the family home. “Mid Canterbury tends to have that steady-as-you-go type thing. I think slow and steady in terms of an increase is good rather than boom or bust. “I think it’s good to see just slow and steady increases, it makes it affordable for people to get into the property market,” Mr Niles said. The slight drop in the past three months could, in some part, be due to a traditional softening of sales during the winter months. He said it was more so a buyers’ market in the higher value home area, where there was a greater selection of homes for sale. There were fewer houses to meet demand in the up to $300,000 market.

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