House values show slow rise

Press, 19 February 1983, Page 6

House values show slow rise

House prices rose slowly in the second half of last year, a reflection of the sluggish market, according to the Valuation Department.

The department reported that house sales throughout New Zealand in the six months ended December. 1982, were lower than they had been since, at least, the first half of 1980.

In Christchurch only 2303 houses were sold compared with 2822 in the six months ended June, 1982; a drop of 519 on an already low figure. Nationally a buyers' market depressed prices and slowed their growth substantially, the department said.

The average price for hquses sold in the second half of Hie vear was $52,370 com-

pared with $49,785 in the first half. Christchurch recorded an even slower growth, the average price rising by little more than $l5OO, from $45,000 to $46,585

The president of the Canterbury branch of the Real Estate Institute, Mr Peter Cook, said that the figures had been distorted by a high volume of sales at the lower end of the price range. The total number of sales was down on 1981, but that had been a particularly good year and average prices had to be approached with care because they could be misleading. The experience throughout the province repeated the Christchurch pattern, according to the department. The number of house sales in Ashburton during the

second half of the year was 150 compared with 184 in the first half, and the average price rose from $36,218 to $37,550. In Rangiora. the number of sales dropped almost 50 per cent, from 81 to 41. The average price rose from $47,073 in the first half of the year to $49,134 in the second. Greymouth was one of the few urban areas to record a drop in the average house price. It fell from $34,467 to only $28,915 and the volume of sales dropped from 46 in the first half of the year to 41 in the second. In Timaru, 276 sales were recorded compared with 420 in the first half of the year and the average price rose from $38,239 to $40,196. In Blenheim, the average house price rose less than

$4OO. from $46,316 to $46,647 and sales dropped exactly half, from 230 to 115. Nelson recorded 392 sales in the first half of the year and only 247 in the second, the average price rising from $55,273 to $60,877. Section sales in the different areas followed the same pattern. Christchurch, for example, recorded 305 section sales in the second half of the year, compared with 557 in the first. The average price rose little more than $BOO, from $14,441 to $16,739.

Disturbing the figures were the very high prices fetched for some sections, among them three in Park Terrace, w’hich sold for a total of $174,500 at auction.

The department did not release a breakdown of figures for owiiership flats.

but said that throughout New Zealand the volume of sales dropped from 5944 in the first half of the year to 5023 in the second. The average sale price over the same period rose from $46,776 to $50,734.

The pattern w’as repeated in the rural property market where the number of small holdings sold dropped more than 14 per cent and the price rose 12.6 per cent. The number of farm sales dropped 17.2 per cent and the average price rose only 10.2 per cent.

An analysis of farm buyers throughout New Zealand showed that 51.3 per cent were established farmers 2612 per cent were new farmers, and 19.9 per cent were businessmen.

The balance the depart ment described as "others."