New Zealand has seen an exponential increase in homes valued over the $1 million mark, new figures from myvalocity reveal.
The data showed that in October, the number of New Zealand homes with an estimated value of over $1 million has increased four-fold since 2013.
The figures illustrate the extent of the property boom in the last three years with Auckland seeing one of the biggest increases in residential homes joining the ‘million-dollar club’ (186,933 homes).
myvalocity’s iVal estimates homes with a value of over $1 million now equates to 41% of all Auckland residential properties – up from 11% in 2013.
Others areas that have seen significant rise in this price bracket include Tauranga, Queenstown, Rotorua, New Plymouth and Hastings.
myvalocity CEO Carmen Vicelich says whilst there are clear signs over recent months from the company’s median property sales and volume data that the market is pulling back, the heat generated in the market in recent years has seen values across the country move to a new level.
“Whilst we are still seeing some growth in most parts of the country, it appears things are starting to level off. However, growth in the last couple of years has changed the valuation landscape quite significantly as many homes have moved up to new pricing brackets due to a supply issue that started in Auckland and moved out to the regions.
“In addition, a number of new ‘high-end’ homes have been built in recent years which has had an impact on overall valuations. Our analysis in Auckland alone has seen the median sales price of a newly built home increase from $450,000 in 2013 to $1,010,000 in 2016.”
According to myvalocity figures for October, sales of homes over $1 million in Auckland now represent over a quarter of all sales.
“The fact that there is still a lot of activity in the $million-plus price bracket is one of the reasons we are yet to see a significant decrease in Auckland’s median sales price,” says Mrs Vicelich. “We expect the next few months, which is traditionally a peak sales period, to further clarify where the market is headed.”