Residential Property Sales Highest in Four Years

Noon, 18 December 2001

REAL ESTATE INSTITUTE OF NEW ZEALAND 18 December, 2001

Residential Property Sales Highest in Four Years

Residential property statistics for November 2001, released today by the Real Estate Institute of New Zealand, show residential sales have continued to climb, with 7,881 transactions in November 2001 compared to 5,810 in November 2000, according to Rex Hadley, National President of the Institute.

Mr Hadley said, “The residential property market has not witnessed such a high level of activity in November since 1996, which saw 8,468 properties change hands. Compared to November 2000, over 2,071 more homes changed hands in 2001.”

Mr Hadley said that the low interest rate environment was a large factor in the rise in sales.

“The lower interest rates currently available has allowed a lot more first home buyers to enter the property market, it’s incredibly satisfying to see more New Zealanders be able to fulfil their dream of owning their own home.”

“The Institute has always said that home ownership is a large part of the New Zealand culture and I think Novembers figures reflect that. I personally don’t believe that many people prefer to rent, as we’ve seen here, New Zealanders will enter the property market as soon as interest rates and property prices make purchasing possible.”

The total value of sales nationwide has also improved significantly, the latter from $1,228,435,172 for November 2000 and $1,438,008,096 in October 2001 to $1,687,169,549 in November 2001.

He said, “As seen in October the total expenditure in the property market is vastly improved from 2000, and the 2,071 additional transactions between November 2000 and 2001 has seen the total value of sales increase by over $400 million.”

The national sales volume rose significantly from both last month and the same month last year. The national sales volume for November 2001 was 7,881, well up on both the 6,666 sales in October and the 5,810 homes changing hands in November 2000.

Property values rose on a year to year basis but eased on month to month comparison, the national median sales price rising $2,200 to $176,200 in November, compared to the $174,000 recorded in November 2000 and easing $2,800 from the $179,000 for October 2001.

On a month-to-month basis, the median sale price rose for five of the eleven regions, those being; Hawkes Bay, Manawatu/Wanganui, Taranaki, Wellington and Nelson/Marlborough.. Those regions where the median price eased were Canterbury/Westland, Northland, Otago, Waikato/BOP/Gisborne, Auckland, and Southland.

On a year-to-year basis, the median sale price rose for eight of the eleven regions, those being; Otago, Southland, Nelson/Marlborough, Taranaki, Wellington, Hawkes Bay, Waikato/BOP/Gisborne, and Auckland. Those regions where the median price eased were Canterbury/Westland and Northland, while Manawatu/Wanganui remained static on $108,000.

Section activity and median section price rose with 567 sections changing hands at a median price of $85,000, compared to 509 sold during October at the median price of $80,000.

-ENDS-

Real estate information is also available via the Institute's official property directory - RealENZ - on the Internet. RealENZ is a search facility providing comprehensive information on residential, lifestyle, rural, commercial, investment and rental properties. RealENZ's Internet address is: www.realenz.co.nz

For further information contact: Mr Rex Hadley, National President

The Real Estate Institute of New Zealand Inc

Mobile: (0274) 904 015

Issued by Weber Shandwick Worldwide Phone: (09) 307 1722

(025) 230 5768

Regional highlights:

NORTHLAND

A total of 157 homes changed hands in Northland, compared to 151 in October. The median price for the area was $154,000, down from the $160,000 recorded in the previous month and the $159,000 for November last year, when 193 homes were sold.

AUCKLAND

In Auckland, 2,706 home settlements were recorded during November, up on the 2,187 recorded in October and the 1,823 homes that changed hands in November 2000. The median price for the region was $245,000 in November compared to $258,000 for October, and the $240,000 recorded for November 2000.

On the North Shore, the median price rose to $272,500 for November from the $267,750 for October and fell on the $275,000 recorded in November 2000. Home sales rose from the 348 in November 2000 and 394 sales in October to 496 in November 2001.

A total of 266 homes were sold in Waitakere City, up from the 246 recorded last month and the 217 sales recorded last November. The median price was $197,000, down on the $200,000 recorded in October and up on the $185,000 for November 2000.

In Auckland City 1,024 homes changed hands, up from the 831 sales recorded in October and the 579 sales recorded in November 2000. The median price of $266,375 was down on both the $300,000 recorded for October and the $277,000 recorded twelve months ago.

Home sales and the median sale price rose in Manukau City, with 539 homes changing hands at a median price of $255,000. This compared with 416 sales and a median price of $246,750 in October and 420 sales recorded last November at a median price of $234,000.

In the Papakura district, 51 homes changed hands, compared to 55 in October and 51 in the same month last year. The median price of $175,000 was down on both the $180,000 recorded in October 2001 and the $215,000 recorded for November 2000.

A total of 2,376 home settlements were recorded in Metropolitan Auckland, up from the 1,924 in October and the 1,615 recorded for the same month last year. The median price of $250,000 was down on the $260,000 recorded for October 2001 and up on the $247,000 recorded for November 2000.

WAIKATO/BAY OF PLENTY/GISBORNE

Sales rose in the Waikato/Bay of Plenty/Gisborne region with 1,086 homes changing hands, compared to 949 in October. The median price was $163,250, compared with $163,500 in October and $158,000 in November 2000 when 701 homes changed hands.

HAWKE’S BAY

The sales volume and median price rose in November with a total of 289 homes changing hands at a median price of $135,000, compared to $130,000 and 251 sales in October. This compared to 183 sales and a median price of $132,000 a year ago.

MANAWATU/WANGANUI

The sales volume in the region rose on a year to year and month to month basis with 360 home settlements recorded in November compared to 304 in October and 289 in November last year. The median price of $108,000 was up on the $105,000 of the previous month and consistent with the $108,000 recorded in November 2000.

TARANAKI

Sales volume rose on a month to month basis with 203 homes changing hands compared to 132 in October. The median price also rose to 112,500 for November compared to $100,000 for October. The median sales price for November 2000 was $106,000 when 122 homes were sold.

WELLINGTON

The median price in the Wellington region rose to $206,500 from the $195,000 recorded in October 2001 and the $197,000 in November 2000. The sales volume rose on both the previous month and year to year comparison, from 919 recorded sales in October to 1,077 homes in November 2001, and compared to 935 sales in the same month last year.

NELSON/MARLBOROUGH

Sales volumes rose in November with 347 homes sold in the Nelson/Marlborough area, compared to 322 sales in October. The median price of $151,000 was up on both the $147,000 recorded in October, and the $147,750 recorded last November when 122 homes were sold.

CANTERBURY/WESTLAND

The median price fell in the Canterbury region at $140,000 for November, compared to $141,000 October 2001 and $143,750 in November 2000. A total of 899 home settlements were recorded, up on the 804 recorded in October and the 850 sales recorded in November last year.

OTAGO

Sales volume rose and median price fell in Otago on a month to month basis with 403 homes sold during November, at a median price of $100,000 compared to 394 sales and a median of $110,500 in October. In November last year 224 sales were recorded at a median price of $95,000.

SOUTHLAND

The median price fell in the Southland region from $89,000 in October to $80,000 in November. Sales volumes also rose, with 354 homes changing hands, compared to October when 253 homes were sold. This compared to a median of $72,750 last November when 224 homes changed hands.

REINZ PROPERTY MARKET REPORT

TOTAL DWELLINGS MEDIAN PRICE

COMPARISONS FOR NOVEMBER 2000-2001

REGION NOV 00 OCT 01 NOV 01

Northland 159,000 160,000 154,000

Auckland 240,000 258,000 245,000

Waikato/BOP/Gisborne 158,000 163,500 163,250

Hawkes Bay 132,000 130,000 135,000

Manawatu/Wanganui 108,000 105,000 108,000

Taranaki 106,000 100,000 112,500

Wellington 197,000 195,000 206,500

Nelson/Marlborough 147,750 147,000 151,000

Canterbury/Westland 143,750 141,000 140,000

Otago 95,000 110,500 100,000

Southland 72,750 89,000 80,000

NZ Total $174,000 $179,000 176,200

REINZ PROPERTY MARKET REPORT

TOTAL DWELLINGS MEDIAN PRICE

COMPARISONS FOR NOVEMBER 1996-1999

REGION NOV 96 NOV 97 NOV 98 NOV 99 Northland 125,000 140,000 145,000 142,000

Auckland 225,000 245,000 227,000 238,050

Waikato/BOP/Gisborne 140,000 152,000 155,000 165,000

Hawkes Bay 120,000 122,750 123,000 127,000

Manawatu/Wanganui 100,000 102,500 101,250 107,000

Taranaki 105,000 100,000 97,500 102,250

Wellington 153,000 161,000 168,000 175,000

Nelson/Marlborough 135,000 131,500 132,500 145,000

Canterbury/Westland 135,000 145,000 140,000 145,000

Otago 100,000 95,000 89,000 95,000

Southland 80,000 87,500 76,000 75,000

NZ Total $156,000 $170,000 $168,000 $172,000

TOTAL DWELLING SALES FOR NOVEMBER 2000-2001 REGION NOV00 OCT 01 NOV 01 Value of sales NOVEMBER 2001

Northland 193 151 157 29,225,952

Auckland 1,823 2,187 2,706 799,369,874

Waikato/BOP/Gisborne 701 949 1,086 199,103,358

Hawkes Bay 183 251 289 44,896,850

Manawatu/Wanganui 289 304 360 42,415,925

Taranaki 122 132 203 24,812,901

Wellington 935 919 1,077 252,164,810

Nelson/Marlborough 182 322 347 59,117,792

Canterbury/Westland 850 804 899 147,812,244

Otago 308 394 403 47,976,850

Southland 224 253 354 40,272,993

NZ Total 5,810 6,666 7,881 1,687,169,549

TOTAL DWELLING SALES FOR NOVEMBER 1996-1999 REGION NOV 96 NOV 97 NOV 98 NOV 99

Northland 304 230 199 201

Auckland 2,869 2,432 2,522 2,248

Waikato/BOP/Gisborne 1,521 1,270 1,087 994

Hawkes Bay 221 254 238 264

Manawatu/Wanganui 344 294 391 359

Taranaki 177 158 164 138

Wellington 1,037 1,085 1,187 871

Nelson/Marlborough 262 203 242 255

Canterbury/Westland 1,151 976 905 876

Otago 363 243 293 316

Southland 219 149 202 177

NZ Total 8,468 7,294 7,430 6,699

MEDIAN PRICE BY DISTRICT FOR NOVEMBER 2001

DISTRICT DWELLINGS SECTIONS

Northland 154,000 60,500

Auckland 245,000 134,750

Waikato/BOP/Gisborne 163,250 70,000

Hawkes Bay 135,000 24,500

Manawatu/Wanganui 108,000 30,675

Taranaki 112,500 29,000

Wellington 206,500 77,000

Nelson/Marlborough 151,000 68,750

Canterbury/Westland 140,000 86,750

Otago 100,000 95,000

Southland 80,000 126,000

Total NZ$ $176,200 $85,000

* Dwelling includes houses, units, town houses, apartments, residential investment blocks and home and income.

AUCKLAND BY REGION NOVEMBER 1999 – 2001

Median NOV 99 NOV 00 OCT 01 NOV 01

Nth Shore 257,500 280,500 267,750 272,500

Waitakere 200,500 185,000 200,000 197,000

Akl City 269,500 277,000 300,000 266,375

Manukau 230,000 234,000 246,750 255,000

Papakura 198,000 215,000 180,000 175,000

Metro Akl 240,000 247,000 260,000 250,000

Number Sold NOV 99 NOV 00 OCT 01 NOV 01

Nth Shore 401 348 394 496

Waitakere 300 217 246 266

Akl City 783 579 813 1,024

Manukau 454 420 416 539

Papakura 77 51 55 51

Metro Akl 2,015 1,615 1,924 2,376

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