INDEPENDENT NEWS

Price trend for Auckland property over past decade solid

Published: Wed 28 Aug 2013 12:54 PM
Media Statement
28 August 2013
Price trend for Auckland property over past decade solid, rather than spectacular gains
An in-depth analysis of the average sales price of three-bedroom* Auckland properties by Barfoot & Thompson over the past 10 years shows that while there has been strong capital growth, price gains have not been spectacular, particularly in the past five years.
“The long term trend shows that across the city as a whole, the average price for a three bedroom home has risen by 78 percent in the past decade, or 7.8 percent a year,“ said Peter Thompson, Managing Director of Barfoot & Thompson.
“While this represents a solid return for those who have committed to home ownership over that period the level of increase is in line with the returns achieved from other forms of investment during a similar period.**
“What the analysis points out is the significant variation in price increases that have occurred across different areas of the city, and that the price rise over the past five years is only a third of the price growth experienced between 2003 and 2008 – 17 percent compared to 51 percent.”
Mr Thompson said the areas where the average price had increased the most in the past decade were Central and West Auckland.
“For the Central area the price of a three bedroom home has increased by 102 percent to $653,000, while West Auckland three bedroom homes have doubled in price to $449,000.
“The attraction of the Central area is its well established infrastructure and its closeness to the central business area.
“In West Auckland’s case buyers have recognised property in the area represented value for money, offered lifestyle choices and saw there would be improved access to the central city through the development of rail infrastructure.
“At the other end of the spectrum, the average price for a three bedroom home in Franklin and rural Manukau increased by 58 percent in the past 10 years, and now stands at $449,000.
“This area retains its rural heritage and represents lifestyle options that have disappeared from many other Auckland locations as the city has grown.
“As transport infrastructure improves between the city and the south, greater buyer attention is likely to refocused south.”
The area which has the highest average price for three bedroom homes is the Eastern Suburbs, where the price growth in the past decade has been 70 percent, and the average price now stands at $826,000.
“While individuals will have bought and sold properties at values with far greater variations than our sales figures show, our statistics are drawn from the sale of more than 13,000 three bedroom homes and provide an accurate overview of price movements in Auckland over the past 10 years.”
*Three bedroom homes were chosen for the analysis as representing the sized house most commonly bought and sold.
**Source: NZX Asset Class Performance Report. Annual return for 10 years to June 2010. Listed property 8.3%, corporate bonds 7.4%, government bonds 6.9%, NZ cash 6% and NZ shares 5.8%.
Ends

Next in Business, Science, and Tech

NZ space sector set to star in Moon mission
By: Ministry of Business Innovation and Employment
The Sky Is The Limit - Air New Zealand To Relaunch 14 International Routes In 16 Days
By: Air New Zealand
Update On Hidden Economy Real Estate Campaign
By: Inland Revenue Department
Entrust Dividend Will Be Welcomed After Another Tough Year
By: Entrust
NZ Economy: Prevailing Headwinds
By: BusinessNZ
Shared Cheese Heritage Should Be Shared Not Stripped
By: NZ Specialist Cheesemakers Assn
View as: DESKTOP | MOBILE © Scoop Media