Monthly Property Market & Economic Update

Transcription

1 Monthly Property Market & Economic Update New Zealand February 2018

2 Contents About CoreLogic 4 CoreLogic Data and Analytics... 4 Legal Disclaimer... 4 Macro Economic and Demographic Indicators 6 New Zealand Asset Classes... 7 New Zealand Population... 8 Migration... 9 Regional Building Consents Population Growth Compared to Building Consents Consumer Confidence Employment Interest Rates Housing Overview 14 Nationwide Values Sales Volumes Rent Market Activity Valuations Completed Listings Buyer Classification House Price Index Main Cities Housing Market Indicators 26 Auckland Market Activity Auckland Values Auckland Suburb Value Change Current Auckland Suburb Values Hamilton Market Activity Hamilton Values Tauranga Market Activity Tauranga Values Wellington Market Activity Wellington Values Christchurch Market Activity Christchurch Values Dunedin Market Activity Dunedin Values CoreLogic Monthly Property Market & Economic Update New Zealand February

3 About CoreLogic CoreLogic is a leading property information, analytics and services provider in the United States, Australia and New Zealand. CoreLogic helps clients identify and manage growth opportunities, improve performance and mitigate risk, by providing clients with innovative, technology-based services and access to rich data and analytics. Whilst all reasonable effort is made to ensure the information in this publication is current, CoreLogic does not warrant the accuracy, currency or completeness of the data and commentary contained in this publication and to the full extent not prohibited by law excludes all loss or damage arising in connection with the data and commentary contained in this publication. Contact Call us Wellington office Level 2, 275 Cuba Street PO Box 4072 Wellington 6140 Auckland office Level 5 41 Shortland Street Auckland reports@corelogic.co.nz CoreLogic Monthly Property Market & Economic Update New Zealand February

4 CoreLogic Data and Analytics CoreLogic Buyer Classification A unique and flagship product to CoreLogic, Buyer Classification determines the type of buyer for every purchase of property based on their current and previous ownership of NZ property. Created at a record level, this can be matched to other datasets or summarised at any geographic area. Our buyer classification is used by financial institutions and Government agencies at both record and summary level and overlaid with their own data to assist strategic, policy, compliance, risk management and marketing decisions. CoreLogic value measures CoreLogic has a suite of products to measure property prices. This ranges from simple market measurements such as median or average sales prices through to stratified medians, various house price indices, and valuing groups of properties using Automated Valuation Models such as E-valuer. The house price indices are available both quarterly for completeness and monthly for reactivity. Suburb scorecard Detailed housing market indicators at suburb level, with data either in time series or current snapshot, and segmented across houses, flats and apartments. The Suburb Scorecard data includes key housing market metrics such as median prices, median values, transaction volumes, rental statistics and market metrics such as median selling time. To view the latest report online and subscribe to receive it in your inbox on a monthly basis, visit; If you would like to know more or obtain tailored data, analytics and insights for your business, please us at reports@corelogic.co.nz. The Quarterly CoreLogic House Price Index has been specifically designed to track the value of a portfolio of properties over time and is relied upon by New Zealand regulators and industry as the most accurate measurement of housing market performance. These value measures are available for long time series and for either standard or custom geographic areas and property types. Legal Disclaimer Copyright This publication reproduces materials and content owned or licenced by RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and may include data, statistics, estimates, indices, photographs, maps, tools, calculators (including their outputs), commentary, reports and other information (CoreLogic Data). Copyright CoreLogic and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) the CoreLogic Data contained in this publication. Data & Research publications Whilst all reasonable effort is made to ensure the information in this publication is current, CoreLogic does not warrant the accuracy, currency or completeness of the Data and commentary contained in this publication and to the full extent not prohibited by law excludes all loss or damage arising in connection with the Data and commentary contained in this publication. You acknowledge and agree that CoreLogic does not provide any investment, legal, financial or taxation advice as to the suitability of any property and this publication should not be relied upon in lieu of appropriate professional advice. Published date: February 2018 CoreLogic Monthly Property Market & Economic Update New Zealand February

5 CoreLogic Monthly Property Market & Economic Update New Zealand February

6 Macro Economic and Demographic Indicators CoreLogic Monthly Property Market & Economic Update New Zealand February

7 New Zealand Asset Classes Residential Real Estate $1.07 trillion ($247 billion in home loans) Commercial/Industrial Real Estate $201 billion NZ Listed Stocks $125 billion NZ Super and KiwiSaver $79 billion The value of residential property continues to grow beyond one trillion dollars, outperforming the value of other asset classes. Residential mortgages secured against 23% of this value. Over the last month stocks worldwide experienced somewhat of a market correction with the NZX dropping 3.6% from its early-january high but they have stabilised in mid-february. *Source: CoreLogic NZ, Reserve Bank of NZ, NZX, NZ Superfund, Financial Markets Authority CoreLogic Monthly Property Market & Economic Update New Zealand February

8 New Zealand Population Quarterly Change in National Population Population growth slowed further in Q4 2017, with the moving average continuing to trend down. Almost three-quarters of population growth is due to net migration, which was 70,000 for the year to the end of December This represents a further fall from the peak of 72,200 to the end of June Population Change Composition After hitting a 20 year low, natural population growth rebounded in Q4 2017, but the overall trend is flat. Annual Change in Population Source: Statistics New Zealand CoreLogic Monthly Property Market & Economic Update New Zealand February

9 Migration Long Term Migration The trend of net migration effectively plateaued for the last three months of 2017 as both arrivals and departures held firm. Immigration continues to be a hot topic for the Government and the declining trend in net migration is likely to continue. This may not be as dramatic as previously expected, due to the need of skilled labour in an already tight market. Monthly Net Migration Between New Zealand and Australia After a few months of net loss to Australia, the stats veered back into the positives in the final months of the year. The expected strength in the Australian economy is yet to have a significant impact on Kiwi migrants yet, and while proposed changes to remove the subsidised tertiary fees for New Zealanders have now been scrapped, there are still some concerns about the visa status of New Zealanders in Australia restricting them from access to certain Government schemes. In 2017, Dunedin saw a 23.7% increase in net migration (from 2016): the largest increase of all our main centres. Net migration to Christchurch continues to slowly decrease, after peaking in the year to the end of March Net Gain Last Year % Change TOTAL ALL AREAS 70, % Auckland Region 36, % Hamilton City 1, % Tauranga City 1, % Wellington 3, % Christchurch City 5, % Dunedin City 1, % Main Urban Area (Other) 5, % Rural Centres 4, % Not applicable/not stated 10, % Source: Statistics New Zealand CoreLogic Monthly Property Market & Economic Update New Zealand February

10 Regional Building Consents New Dwelling Consents Trend Building consents issued in Auckland continues a strong upwards trend but there are consistent reports of the construction industry being very close to capacity. A recent Government commissioned Stocktake report detailed three key barriers to housing supply: planning, infrastructure and the development sector. This foreshadows the Government s challenge in implementing KiwiBuild: the commitment to delivering 100,000 quality affordable homes in the next ten years, half of which will be in Auckland. Elsewhere in NZ consents are now trending sideways as similar constraints affect other centres as well. Population Growth Compared to Building Consents Quarterly Population Change and Building Consents Nationwide With population growth slowing and building consents continuing to increase, the gap between the two is reducing. The gap is calculated by assuming 80% of dwellings consented translate into an actual increase in the number of dwellings (which may be generous given our results of consent to stock change analysis), and that each of those dwellings will house the current average number of people (2.7 people per dwelling). For example, over the year to December 2017 there were 31,127 dwellings consented (able to house 67,234 people), and an increase in population of 97,000, leaving a difference of almost 30,000 too many people for dwellings. Source: Statistics New Zealand CoreLogic Monthly Property Market & Economic Update New Zealand February

11 Consumer Confidence ANZ-Roy Morgan Confidence Consumer Consumer confidence lifted in January with people remaining happy with their current financial situation. Consumer perception of the economic outlook also lifted, perhaps due to a solid start for the Labour-NZ First Government combining with a relatively stable housing market and a strong labour market. The gap in confidence between Australia and NZ was significantly reduced in December with the economic outlook in Australia improving. Source: ANZ NZ, Roy Morgan Trans-Tasman Consumer Confidence Index Source: Westpac NZ, McDermott Miller CoreLogic Monthly Property Market & Economic Update New Zealand February

12 Employment Annual Change in Employment, Full Time and Part Time The rate of part-time employment lifted however the rate of growth in full-time employment eased off for the fourth quarter in a row (albeit only marginally last quarter). The total number of people actually employed has continued to rise. The labour force participation rate eased slightly to 71.0% in Q after peaking in Q at 71.1% and the unemployment rate dropped further to 4.5% - the lowest since Labour Force Participation Rate For an employment lead significant correction in the housing market to occur, there would have to be a turnaround in employment with people unable to pay mortgages or rent. Unemployment Rate Source: Statistics New Zealand CoreLogic Monthly Property Market & Economic Update New Zealand February

13 Interest Rates Mortgage Interest Rates - % Retail banks are competing strongly for mortgages, with interest rates again taking a noticeable dip in January. The Official Cash Rate (OCR) remained on hold in February and is projected to remain below 2.00% until the end of 2019, which is good news for new borrowers and those coming off fixed rates. Projected Official Cash Rate - % The new loan-to-value ratio (LVR) restrictions are now in place. They are only a minor change from previous restrictions with the deposit requirement for investors dropping from 40% to 35% and the share of high LVR lending (above 80% LVR) to owner occupiers increasing from 10% to 15%. The expected impact on the market is minimal, although it will contribute to a small lift in demand from those who were previously unable to satisfy the LVR requirements. Average Two Year Fixed Rates - % Source: Reserve Bank of New Zealand CoreLogic Monthly Property Market & Economic Update New Zealand February

14 Housing Overview CoreLogic Monthly Property Market & Economic Update New Zealand February

15 Nationwide Values Average Value of Housing Stock - New Zealand Nationwide value growth moderated over the summer holiday after a relatively significant lift in November. Three month value growth hit 3.8% at the end of January. This was the fastest rate for over a year, perhaps due to post-election jitters calming and buyers returning to the market - taking advantage of still-low interest rates. Annual and Quarterly Change in Value CoreLogic Monthly Property Market & Economic Update New Zealand February

16 Sales Volumes Nationwide Sales Volumes Sales volumes in December were flat yearon-year, but January volumes were more subdued (6% down year-on-year). Once again sales volumes were very weak in Auckland. High prices and a rebalancing of demand/supply have reduced the fear of missing out, and as a result the days to sell measure has begun to lengthen. Christchurch experienced a late-spring and summer resurgence in sales volumes with November, December and January all up on the (admittedly weak) prior year. Nationwide Annual Change in Sales Volumes Regional Sales Volumes Year-on-Year CoreLogic Monthly Property Market & Economic Update New Zealand February

17 Rent Nationwide Annual Change in Value and Rent Annual rental growth stabilised at 4.9% in December and January, illustrating a similar trend to value growth after both bottomed out in October Gross rental yield continues to hover along just over 3.0% (as it has done for 18 months+). Christchurch rent continues to drop, although the rate of -2.8% is not as great as the drop witnessed through most of the second half of Meanwhile the growth in median rent in Dunedin is now trending downwards after peaking at greater than 10% growth in the middle of Gross Rental Yield - Nationwide Tauranga s annual rent increase of 12.1% is slightly misleading because it s being compared to an anomaly of a month last January. Actual annual change in Tauranga is realistically closer to 7%, which is still rather high similar to Wellington (7.6%), where we ve seen and heard plenty about the rental squeeze in the nation s capital. Median Weekly Rent Annual Change in Rent Gross Yield Auckland $ % 2.1% Hamilton $ % 3.5% Tauranga $ % 3.2% Wellington $ % 3.2% Christchurch $ % 3.6% Dunedin $ % 4.5% CoreLogic Monthly Property Market & Economic Update New Zealand February

18 Market Activity Market Activity Index We re still waiting for the market to properly swing back into action, after the prevalence of public holidays in January and early February impacted both demand and subsequent activity. Nonetheless, relative to the same time last year all major centres are experiencing reduced activity, with Auckland the farthest back. Latest 3 Weeks Year-on-Year Percentage change Auckland -29% Hamilton City -6% Tauranga City -5% Wellington Region -19% Christchurch City -19% Dunedin City -11% This market activity is based on the number of automated valuations run by bank staff using our systems each week. This number of valuations correlates very closely to the number of sales that will subsequently occur so this is an extremely timely measure of buyer demand, more than any measure of sales. We can also track across any geographic area. CoreLogic Monthly Property Market & Economic Update New Zealand February

19 Valuations completed Market Activity Year-on-Year This map shows activity in the latest three weeks compared to the same three weeks last year. New Plymouth has picked up where it finished last year with a sustained increase in market activity, 24% up on the same time last year. Elsewhere there are only a handful of smaller districts across the country experiencing a lift in activity. *Size of bubble represents the level of activity for the period 29 January 18 February 2018 CoreLogic Monthly Property Market & Economic Update New Zealand February

20 Listings New Listings Similar to the demand measure of market activity, the supply measure of new listings takes a few weeks to get back to normal levels as holiday makers drift back to work. The one month change measure is effectively meaningless because it s comparing to Christmas-New Year period (when listings are scarce). The one year change however can be informative, with Wellington listings relatively weak and not doing much to alleviate already constrained supply. New Listings Average last 3 weeks 1 month change 1 year change New Zealand 2, % -2% Auckland % -6% Waikato % 4% Bay of Plenty % -11% Wellington % -12% Canterbury % 2% Otago % 16% CoreLogic Monthly Property Market & Economic Update New Zealand February

21 Total Listings Total listings have begun to trend upwards again in Auckland, with new listings starting to lift and days to sell lengthening. The same is true around the rest of the country but at a reduced rate. Wellington continues to experience a significant shortage, only 2% up on the prior year (which was already a low point for that time of the year). Total Listings Latest week 1 month change 1 year change New Zealand 29,147 4% 9% Auckland 9,125 5% 23% Waikato 3,063 4% 15% Bay Of Plenty 2,092 3% 14% Wellington 1,571 18% 2% Canterbury 4,723 7% 8% Otago 1,097 3% 9% CoreLogic Monthly Property Market & Economic Update New Zealand February

22 Buyer Classification Buyer Classification - New Zealand First home buyers finished 2017 strongly, accounting for 22.2% of sales in the final quarter of the year but haven t started off 2018 quite so well, with 21.7% of sales in January. Movers have bounced back from their Q slump, while multiple property owners remained consistent with 37.5% of sales. We have previously noted the reducing share of mortgaged multiple property owners among this group but they actually had a stronger month in January: accounting for almost twothirds (66%) of multiple property owners purchases (up from 62%), perhaps benefitting from lower interest rates enabling larger loans. CoreLogic Monthly Property Market & Economic Update New Zealand February

23 House Price Index Average Dwelling Value Values increased across most of the country in January, with 3.8% growth witnessed nationwide in the three months to the end of January. Auckland values continued a slight resurgence after spending most of 2017 in gradual decline. A similar trend is evident in Tauranga, however values in Hamilton have remained flat for almost six months. Wellington has seen consistent value growth over the same period after they stalled briefly in winter last year. The growth in values in Dunedin has been more modest but consistent, with 9.3% growth over the last 12 months. January 2018 Current Value 3 months 12 months Since 2007 peak New Zealand $671, % 6.4% 62% Auckland $1,054, % 0.7% 93% Hamilton $544, % 2.6% 51% Tauranga $698, % 3.9% 45% Wellington $634, % 9.0% 39% Christchurch $494, % -0.6% 30% Dunedin $392, % 9.3% 37% Source: CoreLogic NZ QV Monthly House Price Index CoreLogic Monthly Property Market & Economic Update New Zealand February

24 House Price Index Annual Value Change The greatest growth in values over the last year has been in the districts of Hawke s Bay, Horowhenua and Masterton. Much of Canterbury has seen little growth over the last 12 months, with Timaru and MacKenzie the exceptions. Further south, the Southland District (main towns Winton, Te Anau and Riverton) saw the greatest growth in the year to the end of January *Size of bubble represents the number of properties in the Territorial Authority CoreLogic Monthly Property Market & Economic Update New Zealand February

25 Three Month Value Change Three month value change by each of the Council areas is patchier and shows a few areas in the top half of the North Island where values have decreased (blue dots). These include Thames Coromandel, Hauraki and Western BOP. The greatest growth witnessed over this period in the North Island is in Central Hawke s Bay at 8.0%. Three month growth also remains very high in the MacKenzie District, however it s always best to treat these smaller areas (smaller dots) with caution due to fewer sales occurring in these areas. *Size of bubble represents the number of properties in the Territorial Authority CoreLogic Monthly Property Market & Economic Update New Zealand February

26 Main Cities Housing Market Indicators CoreLogic Monthly Property Market & Economic Update New Zealand February

27 CoreLogic Monthly Property Market & Economic Update New Zealand February

28 Auckland Market Activity Buyer Demand - Auckland Demand in Auckland has been very weak so far this year, in part due to the number of public holidays but this is not the sole reason. The weakness in demand may be a sign of further fatigue in the market. The latest week (up to 18 February) did see a lift but it s too early to know if this will be sustained. Multiple property owners appear to have found their new level in Auckland, consistently accounting for around 40% of sales. We must note that each quarter between 25% and 33% of these are making their purchase without a mortgage, unaffected by LVRs or serviceability criteria (and subsequently excluded from RBNZ reporting). First home buyers also remain consistently active at around 23% of the market - we ve previously noted this groups willingness to sacrifice location/property type to enter the property market and this remains true. Buyer Classification - Auckland CoreLogic Monthly Property Market & Economic Update New Zealand February

29 Auckland Values Average Value of Housing Stock - Auckland Values in Auckland are now up 1.6% over the last three months, the fastest rate since December 2016, but with a back drop of continually reducing volumes, this growth is unlikely to be sustained. Papakura continues to experience a strong recovery in values (up 5.1%) since August 2017 after seeing a 3.9% drop after peaking in April The rest of the city appears to making a slightly more restrained recovery after values plateaued or dropped throughout 2017, with Waitakere the only area to still be behind values from a year ago. Annual and Quarterly Value Change - Auckland January 2018 Current Value 3 months 12 months Since 2007 peak Rodney $947, % 1.5% 62% North Shore $1,228, % 1.2% 90% Waitakere $822, % -1.6% 94% Auckland City $1,245, % 1.7% 100% Manukau $904, % 0.3% 98% Papakura $700, % 2.4% 95% Franklin $673, % 2.0% 70% CoreLogic Monthly Property Market & Economic Update New Zealand February

30 Auckland Suburb Value Change Annual Value Change CoreLogic Monthly Property Market & Economic Update New Zealand February

31 The 12 month map of value change in Auckland details variance across the city. Parts of Central Auckland and in the Eastern Suburbs are seeing up to 10% growth, while out West and South of the city there are a greater number of suburbs where values have decreased in the last year. Parts of the North Shore are now showing a bit more sustained growth than previously witnessed. *Size of bubble represents the number of properties in the suburb. Based on CoreLogic Median E-valuer CoreLogic Monthly Property Market & Economic Update New Zealand February

32 Current Auckland Suburb Values Median Value of Housing Stock 20 km 10 km Slight drops in value have not changed a picture of widespread unaffordability in Auckland. There are currently still 106 suburbs where the average value of the housing stock is over one million dollars. *Based on CoreLogic Median E-valuer CoreLogic Monthly Property Market & Economic Update New Zealand February

33 CoreLogic Monthly Property Market & Economic Update New Zealand February

34 Hamilton Market Activity Buyer Demand - Hamilton Buyer demand in Hamilton started strong but hasn t been sustained and while other main centres saw a significant lift in the week ending 18 February, Hamilton did not. Multiple Property Owner activity, including those from Auckland, bottomed out in Hamilton in the middle of last year but they are working their way back, with 43% of sales going to multiple property owners in January. Over three quarters of these secured finance for the purchase. This is interesting considering the tighter Loan to Value Ratio limits for investors, and while these have now been slightly loosened by the Reserve Bank, it s too soon for the change to have had any real effect on sales. Meanwhile first home buyers had a quieter month in January Buyer Classification - Hamilton CoreLogic Monthly Property Market & Economic Update New Zealand February

35 Hamilton Values Average Value of Housing Stock - Hamilton Hamilton values have flattened out since August 2017 after gradually growing for most of Due to the dip in values a year ago, values are only 2.6% up over the last year though. Hamilton South West has continued to grow recently, however Central & North West has experienced 4 months of falling values. Out East both the Northern and Southern areas have seemingly plateaued with less than 0.5% three month growth in each. Annual and Quarterly Value Change - Hamilton January 2018 Current Value 3 months 12 months Since 2007 peak Hamilton Central & North West $494, % 1% 38% Hamilton North East $692, % 2% 54% Hamilton South East $494, % 3% 41% Hamilton South West $492, % 6% 44% CoreLogic Monthly Property Market & Economic Update New Zealand February

36 Tauranga Market Activity Buyer Demand - Tauranga A strong start to the year for market activity in Tauranga has since been followed up with the strongest single week of activity since March 2017, for the week ending 18 February, suggesting sales for February could be relatively strong. Multiple Property owners from Auckland remain a weakening presence in the Tauranga market, however other multiple property owners are holding firm, including those requiring mortgages. Buyer Classification - Tauranga CoreLogic Monthly Property Market & Economic Update New Zealand February

37 Tauranga Values Average Value of Housing Stock - Tauranga Values have once again started to grow in Tauranga (1.7% over the last three months), although the annual rate of 3.9% remains near the low point from the last four years. January saw the average value reach $698,875, the highest on record. Annual and Quarterly Value Change - Tauranga CoreLogic Monthly Property Market & Economic Update New Zealand February

38 Wellington Market Activity Buyer Demand - Wellington Market activity in Wellington is following the typical seasonal pattern - starting slowly but finally kicking into action from late January. The upward trend witnessed since early spring appears to be continuing. First home buyers continue to go from strength to strength in the capital, accounting for 34% of sales in January In Lower Hutt they were responsible for 42% of sales. Access to KiwiSaver funds and grants are assisting these buyers, while low interest rates are helping to keep mortgage repayments manageable. Meanwhile movers and to a lesser degree multiple property owners have kept their activity in check. Buyer Classification - Wellington CoreLogic Monthly Property Market & Economic Update New Zealand February

39 Wellington Values Average Value of Housing Stock Wellington Values in Wellington have continued an upward trajectory that began in September last year, increasing 4.0% over the last three months. The annual rate of growth however remains below 10% as the muted period over winter holds it back. Upper Hutt s recent exceptional growth has hit a speed bump, with only 1.1% growth over the last three months while Porirua (4.0%) and Wellington (3.5%) show no signs of slowing down. Annual and Quarterly Change in Value - Wellington January 2018 Current Value 3 months 12 months Since 2007 peak Porirua $548, % 13% 44% Upper Hutt $470, % 9% 34% Lower Hutt $523, % 8% 33% Wellington City $764, % 9% 44% CoreLogic Monthly Property Market & Economic Update New Zealand February

40 Christchurch Market Activity Buyer Demand - Christchurch Market activity in Christchurch has remained muted following a similar end to 2017, although the latest week of activity (ending 18 February) shows signs of a lift. Not much changed in terms of the types of buyers active between Q and January 2018, with movers remaining less active participants and first home buyers remaining near their all-time share levels. While there appeared to be a lift in multiple property owner activity late last year in the Garden City, this is almost wholly attributable to those buyers not requiring a mortgage. They re unaffected by lending criteria and interest rates and have maintained their activity while all other buyers have dropped away. Buyer Classification - Christchurch CoreLogic Monthly Property Market & Economic Update New Zealand February

41 Christchurch Values Average Value of Housing Stock - Christchurch Values remain very subdued in Christchurch, as growth of only 0.8% over the last three months means values are still 0.6% below the same time last year. This is evident across the City; however values in the Hills have finally begun to make some ground back after the average value dropped to below $650k in October Over the longer term, Christchurch Southwest has seen the greatest growth since the previous peak at the end of 2007 (39%). Annual and Quarterly Value Change - Christchurch January 2018 Current Value 3 months 12 months Since 2007 peak Banks Peninsula $510, % -1% 6% Christchurch Central & North $584, % -1% 32% Christchurch East $372, % 0% 20% Christchurch Hills $667, % 0% 21% Christchurch Southwest $471, % -1% 39% CoreLogic Monthly Property Market & Economic Update New Zealand February

42 Dunedin Market Activity Buyer Demand - Dunedin 2018 market activity has started off relatively positively for Dunedin, with gradually increasing volumes leading to a strong week ending 18 February There has been a lift in mortgaged multiple property owners in Dunedin, including those from Auckland. This is a surprise considering the generally accepted lower level of rental stock in the student city and the fact that the policy spotlight is currently on the need to improve rental quality. Many were expecting that areas like Dunedin would become a less attractive investment option. It may be too early to draw this connection yet, but it s certainly one to keep an eye on. Buyer Classification - Dunedin CoreLogic Monthly Property Market & Economic Update New Zealand February

43 Dunedin Values Average value of stock Dunedin The growth in values in Dunedin has been modest but consistent, with 2.8% growth in the last three months and 9.3% growth over the last 12 months. Values across the Peninsula and Coastal areas have been volatile with values dropping dramatically over winter and quickly regaining those losses in spring and now showing signs of stalling again (although retaining 3.2% growth in the last three months due to prior growth). In Taieri, values have again started to rise, albeit at a slower rate than other parts of the City. Annual and quarterly change in value - Dunedin January 2018 Current Value 3 months 12 months Since 2007 peak Dunedin Central & North $410, % 10% 36% Dunedin South $373, % 9% 31% Peninsula and Coastal $360, % 13% 33% Taieri $402, % 7% 37% CoreLogic Monthly Property Market & Economic Update New Zealand February

44 For more information contact us corelogic.co.nz Copyright CoreLogic and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) the CoreLogic Data contained in this publication.