House Prices & Sales Continue to Soar in Auckland
May 11, 2015 at 11:21 AM
According to Quotable Value, the price of the average Auckland home continued to rocket in April and is now worth more than $800,000. That compares with a national average of $507,040.
One city agency recorded a rise of $27,553 since March, an increase of 3.5% and the region continues to be the main driver in the overall national increase. When adjusted for inflation, QV says Auckland values are 14.5% higher over the past year and 27% above the 2007 peak.
Within the Auckland region, only one district has homes where the average value is below $500,000 - Papakura on the city's southern flank, where the average value was $489,323. That was up 13.6% compared to April last year.
Sales numbers during the month were also high - the highest they have been in an April in the past decade. However heading into May, the number of new listings is down and it appears that overall, supply continues to fall short of the demand.
In contrast, housing rents declined for the second month in row in all three main centres, according to interest.co.nz's Housing Rent Monitor. In Auckland the median rent for a three bedroom house fell from its all-time high of $597 a week in February to $580 in March and $550 in April. That puts it back to where it was in April last year, but still well up (10%) on April 2013.
While the fall in rents could be of concern to some investors, it may simply reflect a seasonal fluctuation following the typical New Year peak. QV Auckland valuer James Wilson said property investors were still very active in the Auckland market, making the most of low interest rates and high equity across their portfolios as well as the rapid rise in prices.
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