‘Halo’ effect as home buyers look beyond Auckland: REINZ

by Maya Breen12 Oct 2015
The regions of Northland and Waikato/Bay of Plenty have recorded very strong sales growth over 2015, reflected in record median prices, according to Real Estate Institute of New Zealand’s residential report for September.

REINZ Chief Executive Colleen Milne says, “There is continued evidence of Auckland investors and first home buyers spreading to other regions causing a ‘halo’ effect.

"The new IRD number requirements may have had some dampening effect on offshore buyers in Auckland, although this is not shown in the data. However, the forthcoming relaxation of the loan-to-value-ratio (LVR) restrictions for the regions will have a positive effect for first home buyers but may add to the consequential shortage of listings in their range. The lowering of interest rates has also had a positive impact on buyer sentiment in the regions, although the effect is hard to measure in the Auckland market.”

8,174 dwellings sold throughout New Zealand in September 2015, a 38.3% increase on September 2014 and up 5.3% on August 2015.
 
The national median price has hit a new record, rising $19,650 (+4.2%) to $484,650 from August to September to reach a new record high. In comparison with September 2014 the national median house price increased by $64,650 (+15.4%)

Auction sales have also broken records at 2,311, with sales by auction reaching more than 50% of total sales in Auckland for the first time.

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