House Prices

Demand cools in Auckland

Property prices may still be hitting record highs around New Zealand but new Trade Me Property data suggests that demand in Auckland is cooling.

Monday, June 18th 2018

Auckland

Auckland’s average asking price fell by a small, but significant, $350 year-on-year to $918,650 in May, according to the latest Trade Me Property Price Index.

The data also shows that the average number of buyer views on Auckland properties for sale is down by almost 6% on May last year and by 20% as compared to May 2016.

Head of Trade Me Property Nigel Jeffries says these are signs the Auckland market is settling back to a more normal rhythm after years of frantic growth.

“Auckland’s growth has been dramatic and well-documented but that growth has finally died down and we’re seeing a more normal market with dips and fluctuations.

“The key ingredient in any market growing like Auckland has been is a mismatch between supply and demand. Demand is dipping which means the Auckland market is finally slowing.”

However, Jeffries says there are exceptions to this with some pockets of the market still seeing extremely strong demand.

“Demand for the sought-after suburb of Kingsland increased significantly in May with the average number of views on properties for sale increasing 111% on last year.

“Glendene and Orewa followed close behind Kingsland, with respective jumps of 67% and 54% in the average number of views since May 2017.”

It also seems that townhouses are currently the preferred property type in Auckland as the average asking price hit the $900,000 mark for the first time in May.

“They’re still a cheaper option than buying a house in the Super City and with less maintenance costs they’re an attractive option for buyers wanting to get into the market,” Jeffries says.

Meanwhile, average asking prices around the rest of New Zealand continue to rise strongly.

The data shows the average asking price nationwide rose by 0.8% year-on-year to reach a record high $645,900 in May. 

Six regions across the country also recorded record asking prices in May, with Hawke’s Bay being the standout performer – up 17.9% year-on-year to reach $534,850.

Marlborough climbed 13.3% year-on-year to $492,450, Taranaki was up 13.2% to $435,300 and Wellington jumped up 10% to $589,600.

Northland and the Bay of Plenty also hit new highs climbing 8.6% and 5.3% to $558,150 and $620,550 respectively.

Jefferies says that, anecdotally, they’re hearing of more and more people looking to the regions for a better work-life balance.

“So it’s not surprising that we’re seeing areas like Marlborough, Hawke’s Bay and Northland becoming very popular with Kiwis.”

 

Comments

No comments yet

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.