The latest House Price Index statistics released by Quotable Value (QV) show Wellington’s home values are soaring almost twice as fast as Auckland’s.
Wellington’s house values have grown 21.1% since last year while Auckland’s have increased by a much smaller 13.8%.
QV National Spokesperson Andrea Rush says, “Home values continue to rise faster in the Wellington Region than the Auckland Region, and the housing market in the Capital appears largely unaffected by the new LVR restrictions, particularly at the more affordable end of the market in areas such as the Hutt Valley, Porirua and the Kapiti Coast”.
QV homevalue General Manager, David Nagel added, “at this stage the latest LVR restrictions do not appear to be affecting the market hugely, and there are plenty of local investors who are still active across the Wellington region.”
It is not surprising that local investors have been deterred from the Auckland market, with the average value of a house costing $1,045,207. Compare this with the Capital’s average house value of $558,886 and you can see why!
If you are not able to buy for the average Wellington City cost of $558,886 - think about the areas just outside the city and research into this more!
Best affordable areas to buy or invest:
Kapiti Coast - $458,013
Lower Hutt - $460,572
Porirua - $470,059
First home buyer advice:
You need to be open to all locations and compromise if you truly want to own your first home - that means considering a longer commute to get to work. Remember, your first home is not always going to be your forever home, look at this as your first step on the ladder. Lastly - be patient, it can take months, so keep saving in the meantime!
Property investor advice:
As above, look for outside the regions you usually look towards. Make sure you have advice on the risks and benefits that come with investing in property and you are fully aware of the legalities surrounding this.
In the short term, it doesn’t look like the market will slow down, so make sure you save yourself a lot of sleepless nights and talk to your Craig Pope mortgage adviser who can give you their unbiased expert advice!