10 Jan 2012

Property values rising, but mixed year forecast

10:17 pm on 10 January 2012

Residential property values have increased gradually over the past year, but analysts say the recovery may be faltering.

Quotable Value says values nationwide have risen 2.4% over the past 12 months.

The property valuer says national values began to increase from April on as most of the main centres - apart from the capital Wellington - began to stabilise.

By September, values were increasing in all the main centres, as well as in many of the provincial and rural towns.

But values flattened in Hamilton, Tauranga and several provincial towns between November and December.

Quotable Value research director Jono Ingerson says the outlook for this year will be mixed - with Auckland values expected to increase, given the growing population and weak building activity.

Mr Ingerson says values in earthquake-hit Christchurch will depend on the timing of the city's rebuild, while values in Hamilton and Tauranga are likely to stay stable.

There are also concerns about the financial situation in Europe and how that might affect New Zealand, he says.