June values rise

Tina Morrison of The National Business Review writes:

“New Zealand property values rose at a 7.6 percent annual pace last month as demand continued to outstrip supply in Auckland and Christchurch”, state valuer Quotable Value says.

“Property values stepped up the pace from last month when they increased at a 7.1 percent annual rate, also driven by demand in Auckland and Christchurch. Values increased 2.8 percent in the three months ended June 30, up from a 1.7 percent quarterly pace in May”, the agency said.

“The strong increase in values is largely constrained to Auckland and Canterbury, with values across the rest of the country still largely subdued,” QV operations manager Kerry Stewart says.

One doesn’t need to be a rocket scientist to work out what is underpinning the heated property market in both Auckland and Christchurch – the bottom line in my opinion is supply. The aftermath of the earthquakes saw more than 6,000 homes taken out of the Canterbury market – it really is no surprise that we’re now beginning to see upward pressure on property values.  When demand outstrips our housing supply, it results in premiums being paid for both rentals and property purchases. It’s not a lot different to my farming days really, when there was an oversupply of beef the prices came down and vice versa – the laws of supply and demand will always prevail!

Obviously in Christchurch, post-quake we literally have fewer homes in circulation, combine this with high demand for rentals and it is not hard to appreciate that this literal lack of housing becomes the predominant driver for this current unprecedented intensity and growth.

One thing this clearly points to is capital gains – one of those bonuses that comes with owning property, and no better place to find such gains than Christchurch at the moment!

Why not take the first step? You won’t look back!

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About Peter Griffioen

Peter Griffioen - or simply Griff to those who know him - has an established reputation as a high-producing Harcourts Canterbury salesperson. With a focused approach to customer service you can rest assured that you are in good hands, whether it be a relaxed chat about the state of the market or an in-depth discussion regarding your next property transaction. The key advantage of engaging Team Griff’s services is their local knowledge and experience. Currently in this post-seismic era, it is vital to have true professionals working on your behalf, ensuring that you are guided through the process professionally and with a caring approach. The advent of the ‘as is, where is’ market means specialised expertise are required and Team Griff has taken it on themselves to both understand and explain the pros and cons of this now accepted sale/purchase option. For over 26 years the Griff brand has become synonymous with achieving results. Griff now prides himself with his five member team and takes much satisfaction from empowering them to both achieve and reach their own goals. A team with a proven track record placed with the highest ranking Harcourts Million Dollar Club members, exceeding the $275m level. Such accomplishments highlight the team’s exceptional marketing and negotiating skills. Team Griff are recognised as industry leaders for their online presence and regular blog posts of current and relevant real estate information. E-marketing and readily available property specific detailed info means Team Griff’s clients have the edge when it comes to selling their homes, not forgetting purchasers who benefit first hand. A simple Google search says it all – the Griff brand ranking with the most frequent. Griff’s life focus extends beyond business, with quality time and fun being high priorities, while mountain biking, boating and fishing provide that vital time out. His Christian faith is his anchor for daily living, and his community is important to him. For a team approach to optimize the result for your next property transaction, be sure to talk to this award winning team - synonymous with hard work and results! Griff and his trusted team welcome your enquiry today.

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