Auckland has seen "frantic" growth over the past few years, though new figures suggest the market is slowly stabilising
House prices in Auckland fell year-on-year by a “small but significant” $350 according to the latest Trade Me Property Price Index – a sign that the market is settling down to a steadier rhythm after several years of significant growth.
Prices and buyer views dropped in May, with the number of views on Auckland properties down almost six percent on last year. According to Trade Me Property head Nigel Jeffries, the Auckland market has ground to a halt after several years of solid 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,” said Jeffries. “The key ingredient in any market growing like Auckland is a mismatch between supply and demand. Demand is dipping, which means the Auckland market is finally slowing.”
“There are exceptions, and some pockets of the market are still extremely strong,” he continued. “Demand for the sought-after suburb of Kingsland increased significantly in May with the average number of properties for sale increasing 111% on last year.”
The asking price for properties across New Zealand reached a record high for the first time since April of last year, with Hawkes Bay being the “standout performer” and climbing 17.9% to reach $534,850. Marlborough, Taranaki and Wellington also saw significant price hikes, with an average 12.2% rise between the three areas.
“Anecdotally, we’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, Hawkes Bay and Northland becoming very popular with Kiwis,” said Jeffries.
When it comes to house type, medium and large houses reached a new high across the board with 3-4 bedroom homes rising 1.4% on last year. Large 5+ bedroom houses were up just under 1% in May, but saw a jump of 11% in areas excluding Auckland. Townhouses also appeared to be a “hot favourite” in Auckland, cracking the $900,000 mark for the first time in May.
“[Townhouses] are 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,” says Jeffries.
