Investors cashing up as market flattens?

Crockers speculates this may reflect concern among property owners at rapidly rising mortgage rates, or alternatively, it may be buyers simply “cashing up”.

“In May last year, we noted that the median had reached $400,000 for the first time. Some investors may feel that the wave has now peaked. Time will tell if that judgment is correct or not,” the research report says.

While Auckland prices remain highest, property sales prices in Christchurch and Wellington have easily kept pace in growth terms since around 2002.

“A close look at the past five years’ data reveals an average median price rise of 14% per annum for Auckland, compared to 18% in Wellington and 17% nationwide,” the report says.

South Island investors have, on average, fared even better. Christchurch enjoyed a 22% rise per year and Dunedin 30%.