Dunedin’s still operating at a very low base
Dunedin real estate agents say they see no end in sight for the ongoing residential property value boom in the city.
The latest monthly Quotable Value House Price Index released yesterday found the average residential property value in Dunedin for January was $359,055 up 15.5% from the same month last year.
There was also a 5.1% increase in prices since November.
Dunedin-Taieri had the strongest growth. Values were up 17.5% year-on-year.
Harcourts Dunedin manager Richard Stringer said Dunedin was a great sellers’ market and he expected growth in home values would continue over the next six to 12 months unless something “drastic” changed around the world.
Market activity was likely to experience a minor slowdown before the general election, due to uncertainty about the direction of future public policy, but activity would resume afterwards.
There was good demand in the price range between $250,000 and $500,000, which was by far the “busiest and the strongest”.
Houses were selling quickly.
The average listing time in December for Dunedin was 21 days, Mr Stringer said.
Nonetheless, Dunedin remained highly competitive with the rest of the country, Mr Stringer said.
“Dunedin’s still operating at a very low base.
“It’s had some good gain but it’s still a very low base compared to other main centres around New Zealand.”
There was an “imbalance” in the market compared with previous high values in 2007 because the same volume of supply was not coming on to the market, Mr Stringer said.
Cutlers property consultant Hamish McDonald said he saw nothing in the market to slow it down.
The biggest movement in prices was in the $200,000 to $500,000 price bracket, he said.
A house in Normanby, expected to go for $300,000, sold recently for $350,000.
Such situations were not uncommon, Mr McDonald said.
QV’s figures found the national average residential property value was $631,302, which meant Dunedin remained “incredibly affordable” compared with the rest of the country, Mr McDonald said.
Metro Realty partner Adam Gain said the Dunedin market was very buoyant and large numbers of people were attending open homes.
An open home last week attracted 30 groups and one group bought it, Mr Gain said.
Based on this strong interest, home value growth would continue because it would take several months for supply to meet demand.