Auckland house prices ease but rents rising

Wednesday 1 August 2007

June residential sales figures for Auckland fell back slightly after their strong upward trend in the first part of the year, latest Crockers market research reveals.

“No doubt softening under the pressure of rising interest rates, the market recorded a 10% year-on-year increase in the median sales price (down from 17% in April),” the Crockers report says.

The median price now sits at $445,000.

Sales numbers were also down, with an 8% year-on-year decline, in contrast to increasing sales in previous months.

Sales figures for the whole country show a similar pattern: a small drop in the median price in June (down to $347,500, which is still up 12% year-on-year), and an 11% decline in the number of sales compared to June 2006.

There were signs in May that average rents might finally be starting to climb. June figures suggest that May was no flash in the pan – at least as far as newly let properties are concerned.

For three-bedroom properties let during June, the average rent per week was $419; up from $408 in April, and a 5% year-on-year increase. In the two-bedroom market, the year-on-year increase was even larger: 8%, with an average rent of $320 per week across Auckland.

Nationwide rents in June recovered from their dip in May, showing significantly higher increases than Auckland.

Across the country:
• Two-bedroom rental levels have risen 17% year-on-year, but only 8% in Auckland
• Three-bedroom rental levels have risen 19% year-on-year, but only 5% in Auckland.
This continues the trend of Auckland rental properties delivering relatively poor returns compared to their counterparts in other parts of the country, the report says. “This can be put down, quite simply, to high property prices in Auckland.”

Commenting is closed

Property News

Super City affordability slides further

Auckland has been ranked the fourth least affordable city of the 92 major housing markets included in an international housing affordability survey.

Commercial

Sealing the deal

Buying a commercial property requires a multi-faceted approach and loads of research, but many investors don’t appreciate the finer points involved.

Mortgages

No more lending restrictions needed

The slower housing market means the latest LVRs are working and no more restrictions are needed, according to one real estate head.

Site by PHP Developer