As winter takes its toll on sales volumes across New Zealand, the tale of two markets continues, with prices remaining stable in Auckland and Canterbury but rising in most other parts of the country.
Volumes down but prices still on the rise
Published: July 2018
In most parts of the country, the lack of property supply continued to put upward pressure on house prices. In June, the New Zealand median house price rose $30,000 to $560,000, up 5.7% on June 2017.
Waikato, Wellington and Marlborough all saw double-digit growth in the period and hit record median prices of $525,000, $595,000 and $440,000 respectively. And while not setting median price records, both Gisborne (+26.9%) and the Hawkes Bay (+15.3%) recorded strong annual increases.
Bucking the national trend, the Auckland median price dropped 0.7% down to $850,000, and similarly the Canterbury median price dropped 0.1% to $434,000.
“Again, we’re seeing this two-tier market across the country where prices are remaining stable in Auckland and Canterbury but rising in most other parts of the country,” said Bindi Norwell, REINZ CEO.
Commenting on the Auckland market, Norwell highlighted that the number of one and two-bedroom houses sold has increased while sales of three-bedroom houses has decreased; an indication that people are looking at downsizing or options to get into the Auckland property market.
“From a volume perspective, we’ve seen the usual winter slowdown impact the market,” said Norwell.
The number of properties sold across New Zealand fell to 6,034, down 1.6% on June 2017. This was largely due to a 9.9% decrease in new property listings year-on-year, and a significant decrease in sales in eight of the 16 regions.
“Sales volumes fell significantly year-on-year on the West Coast (-25.7%), which was the lowest sales count for 14 months, Waikato (-14.0%) also the lowest sales count for 14 months, Wellington (-10.6%) the lowest number of properties sold for five months and Otago (-8.3%) the lowest sales count for 11 months,” said Norwell.
“Despite this, there were some regions that saw a strong increase in sales including Hawke’s Bay (+23.0%), Tasman (+22.8%) and Manawatu/Wanganui (+14.1%).”
Click here for REINZ Key Data Summary – Monthly Property Report for June 2018
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