Wellington Property Values Sluggish

February 10, 2015

Tips & Ideas

wellingtonAccording the QV Wellington’s Property market is still very sluggish growing just 0.8 percent in the last 12 months. Compare this growth to that of Auckland which grew 12 percent and you’d be forgiven for thinking Auckland was the capital city of New Zealand.

Wellington Property buyers are being ‘cautious and conservative’ says QV. Why we may well ask? What’s in the water up north and can we have some of it in our capital city please!

Clearly there’s no major concerns in the minds of Auckland home buyers so why are the Wellingtonians being conservative? They are said to earn more per capita than the Aucklanders and interest rates are low so what’s holding them back?

Maybe it is a lack of confidence in the local economy. We know the opposite can be said for Auckland the economy is moving ahead nicely however if we believe what’s written on news sites, the rock star economy is not translating into pay rises or job security.

A news item on NZHerald in December 2014 said there was general lack of opportunism in the job market in New Zealand with static salaries and job insecurity expected to continue into 2015.

Westpac economist Satish Ranchhod said in a statement.

“This nervousness has seen households becoming more pessimistic about the availability of jobs over the coming year, and has prompted them to wind back their expectations for wage increases.”

Source

While you’d expect this to be a valid reason for Wellingtonians’ lack of enthusiasm, (verging on depression) it has not affected homebuyers willingness to pay the going rate for property in Auckland. So the jury is out on why there’s a huge disparity between the Auckland and Wellington property markets.

Maybe Wellingtonians need a reason to fall in love with their city again. Step up Sir Peter Jackson – if anyone can Sir Peter can. Another movie series filmed and produced here will put the spring back into Wellingontians’ boots.

In the meantime Welllington remains an investor’s market.

Download the new eBook showcasing property investor deals done in Wellington.

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