10 Oct 2012

Property value rise slows

7:22 am on 10 October 2012

Property valuer Quotable Value (QV) says property values are increasing nationwide but at a much lower rate than that experienced before the global economic meltdown.

Figures from QV show house prices have risen 1.8% in the past three months, and 5.3% over the past year.

QV research director Jonno Ingerson says while values have been increasing for over a year, that needs to be put into context.

"We're not saying that property values are booming, by any stretch," he says.

"The rate of increase that we're seeing is about 5% a year ... much more gradual than it was back in the peak of the market".

Most of this growth was from a strong market in Auckland and post-earthquake Canterbury; the rest of New Zealand is growing at a little over 1.5%.

Mr Ingerson says first home buyers and investors are definitely more active now than they have been in the past few years, and this is being spurred by low mortgage rates.