New Zealand’s average home property values have jumped by 5% to $1021 million in the past three months. The slow, but steady growth rate accounts for an increment of $45,000 in the average housing property value; and, thus is a bearer of good tidings in a Christchurch housing market deprived by the lockdowns and new governmental LVR policies for banks.
How is the Christchurch housing market contributing to average NZ home value growth?
Marlborough exhibited the sharpest decline in the last couple of quarters (from 8.8% to 1.2%); growth in Southland also dropped from 4.2 to 3.6%. But, Otago, Canterbury, Nelson, Auckland, and Northland have all registered, at the very least, a percentage of growth between the last two quarters. At a time when growth has slowed in 11 out of 16 of NZ’s regions, Auckland is still going strong.
Christchurch’s October average house prices are at $1.451m, which is $74,000 more than the previous quarter. Christchurch’s growth has helped bolster the whole Wellington region’s average housing price around the $1 million mark. Things are also looking up for the Bay of Plenty, Tasman, and Waikato as they are on the brink of joining the ‘$1 million club’ with average housing prices at $987,000, $942,000, and $914,000, respectively.
But Christchurch housing market updates suggest that prices here have steadily climbed in the last two years. So much so, that some first-time buyers are finding it difficult to catch up to the momentum of the market. Even that challenge might be a thing of the past, as explained below.
The Christchurch housing market average property value is the lowest of all the seven centers. Its jump to 8.8% of growth takes its property value average to $718,000. Tauranga has seen s growth of 6.5% to $1.138m; Queenstown Lakes’ average house prices are up by 6.4% to $1.624m; and, Hamilton reports a 4.7% increase to $866,000. Wellington itself is up by 3.6% to $1.231m.
New zoning reforms to further boost Christchurch housing market housing crisis
Notably, this increment is still lesser than the 6.1% increase that was documented in the previous three-month period, according to statistical reports by leading realty market analytics agencies. However, given the slowdown in buyer activities in these months, Christchurch housing market predictions are indicative of positive factors for a post-pandemic lockdown market; such as multi-housing prospects on the same lot/unit are being discussed as a means to ease burdens. This should also greatly multiply the number of listings usually available in the market.
This would definitely cut the average housing price by a large margin by creating more home options in quality locations. The government is further striving to mitigate the single-family zoning policy in NZ’s five biggest metros. Cities such as Christchurch, Wellington, and Auckland are soon going to permit owners to build up to three housing units, to a maximum height of three stories. This should help curb the problems with affordable housing. The legislation has been enough to inspire housing advocates in British Columbia.
