11 Feb 2014

House buyers avoid expensive suburbs

9:39 am on 11 February 2014

Quotable Value figures show house prices are rising in cheaper suburbs in Auckland and Wellington, as people seek value for money in the face of rocketing prices in more expensive areas.

Prices for homes in Upper Hutt rose fastest in the Wellington region.

Prices for homes in Upper Hutt rose fastest in the Wellington region. Photo: PHOTO NZ

In Auckland, prices for homes in Papakura, Franklin and Manukau Central have risen the most over the past three months. In Wellington, prices in Upper Hutt have risen the fastest.

QV research director Jonno Ingerson told Radio New Zealand's Morning Report programme the trend is clear, particularly in Auckland, where demand in prime areas such as the central city is not as strong as it has been.

"Over the last few months what you've started to see is the value's been growing the highest around the fringes of Auckland as people have moved away from the expensive parts and moved a bit further out."

Mr Ingerson said buyers are deserting more expensive areas for housing that is more affordable.