Terrace housing, new developments in the Viaduct Basin and positive spin-offs from the America's Cup are all helping to boost the country's biggest real estate region, Auckland.
The Real Estate Institute's latest residential property figures, for July, give a breakdown for different areas within Auckland (see Auckland: median prices). While median prices are down on June, they're still higher than last year in every area except Papakura while the number of houses sold is also on the rise.
The whole Auckland region makes up a big chunk of the New Zealand market, with total sales of 2,203 last month contributing nearly a third of the country's total. Median prices for the region are still way higher than anywhere else at $232,000 in July - number two is Wellington at $178,500, while Southland still trails the pack at $83,000.
Good Returnsspoke to some Auckland agents for Bayleys Real Estate to find out what's happening locally. Their comments included:
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Terrace housing projects (two or three-level adjoining houses) are one of the latest trends. Usually more affordable than apartments, they also offer some outdoor space for the barbie and a bit more privacy as no-one else lives above or below.
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A series of redevelopments in the Viaduct Basin are creating virtually a whole new city, one agent says. He believes that the focus on tourism is "coming to fruition", the upcoming America's Cup is creating a positive mood (with a direct effect on the rental market)and the market is extremely buoyant.
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While prices still haven't made it back to their highs, there are plenty of willing sellers. With fixed interest rates on the move up again, many people are keen to buy before rates increase even further.
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The upcoming election isn't having as much impact on the market as it has in other years. "People are pretty cynical about MMP," said one agent.
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The North Shore and areas such as Albany are charging ahead, while an inner city agent listing top properties ($1 million plus) said he was the busiest he'd been in years.
Auckland: median prices (residential dwellings)
| | A year ago (July 1998) | Previous month (June 1999) | Last month (July 1999) | | -------------- | ----------------------- | -------------------------- | ---------------------- | | North Shore | $241,500 | $255,000 | $245,000 | | Waitakere | $199,000 | $199,500 | $203,000 | | Auckland City | $265,000 | $276,750 | $270,000 | | Manukau | $215,000 | $246,500 | $220,000 | | Papakura | $197,500 | $201,000 | $173,250 | | Metro Auckland | $230,000 | $245,000 | $235,000 |
Source: REINZ
Auckland: number of sales (residential dwellings)
| | A year ago (July 1998) | Previous month (June 1999) | Last month (July 1999) | | -------------- | ----------------------- | -------------------------- | ---------------------- | | North Shore | 334 | 392 | 441 | | Waitakere | 267 | 279 | 297 | | Auckland City | 571 | 726 | 672 | | Manukau | 365 | 426 | 462 | | Papakura | 52 | 81 | 84 | | Metro Auckland | 1,589 | 1,904 | 1,956 |
Source: REINZ
