It considers Auckland as the big winner of the quarter
Colliers International’s latest survey has revealed positive surge in house price expectations in the coming year, with Auckland coming up on top.
The real estate company’s latest quarterly Residential Property Market Outlook Survey found a jump in price growth expectations, with a positive 41% of respondents expecting the median residential property price to increase in the next 12 months – a jump from net positive 18% in the previous quarter and the highest national score since a March 2017 quarter.
Queenstown is still on top with a positive score of 63%, followed by Tauranga/Mount Maunganui with a net positive 55%.
However, Chris Dibble, research and communications director at Colliers International, said Auckland has been the biggest winner in this survey.
“After a relatively sombre year, respondents are now feeling much more upbeat for Auckland’s future, pushing it to third place. The median price outlook for the Auckland region is a net positive 49 per cent, up significantly from the last quarter, which recorded a net positive 6 per cent,” Dibble said. “In addition to the surge in Auckland, median price expectations in Rotorua, New Plymouth, Palmerston North, Christchurch and Dunedin have almost doubled since the last survey.
Read more: Economists expect more house price growth next year
Dibble said the last quarter of 2019 is turning out to be crucial for Auckland’s residential sector.
“The Auckland region appears to be showing signs of life again after flatlining for around three years. While annual price rises in Auckland are likely to remain modest to start with in 2020, it does set the scene for higher rates of growth in 2021,” he said, adding that rise in prices will go hand in hand with the rise in stock to purchase.
He also noted that the recent upswing in development has been mainly driven by low interest rates, high levels of population growth, and solid job prospects.
“But crucially, the Auckland Unitary Plan has been a major lever enabling this growth,” he continued. “Intensification in brownfield locations has been instrumental, especially when focused around other key attributes like infrastructure and amenity.”
