Central’s home values are growing by 0.9 percent this quarter, above the growth in Dunedin, Waitaki and Clutha according to the latest Quotable Value (QV) house price index released this week.

Tall Poppy business owner Peter Hishon said for Central and the Lakes District, the value figures tell the story.

“Locally we’re seeing a mixed market. There is still a lot of buyer confidence . . . people are getting on with life and getting into the market. The new activity in the city centres, Dunedin included, feed [the market] in Central.”

Peter said with the Government changes and any proposed changes around investor rules, tenancy rules and foreign investments still to be sorted, it was a bit early to get “too excited”.

“These benefits will [come] into next year. 

“First home buyers are still very strong across . . . Central. [Our region] is picking up on affordability versus Wānaka and Queenstown as young couples can buy into Central Otago.” 

Peter Hishon. PHOTO: Supplied

The lifestyle block area in and around Clyde and Alexandra has been strong, he said.

“There is a strong push for people wanting to move to the country . . . It’s not uncommon to be in the two million range and the area is attracting high end and nice builds too.”

The index shows residential property values increased in Dunedin by an average of 0.7 percent, Clutha 0.6 percent and Waitaki was 0.5 per cent, throughout the three months to the end of October.

QV house price index for October 2023, showing main urban areas’ average value and change for this quarter. PHOTO: Supplied 

Queenstown’s residential property values continue to build and the average home value increased by 1 percent to $1,731,858 in the October quarter.

The latest QV house price index shows the national average home increased in value by 2.1 per cent over the past three months.

It is an improvement on the 0.9 percent quarterly home value increase reported at the end of September, with the national average now $907,387.

QV operations manager James Wilson said the housing market was increasingly showing signs of recovery, in the context of a low level of sales activity and challenging economic conditions.

“Interest rates and credit constraints continue to act as a handbrake for the most part, but we are seeing increasing signs of life across much of the country.”