Auckland Buyers Spreading Into The Regions

Auckland Buyers Spreading Into The Regions

Summary

• 7,426 dwellings sold in New Zealand in June 2015, up 29.2% on June 2014 and down 7.0% on May
• A national median price of $450,000, up $23,000 (5.4%) on June 2014 and down $10,000 (2.2%) on May
• A national median price excluding Auckland was steady at $340,00 compared to June 2014 reflecting a decline $9,000 compared to May
• A rise of 26% in Auckland’s median price, from $600,000 in June 2014 to $755,000 in June 2015
• Eight regions, including Auckland, with sales volume growth of more than 20% compared to June 2014
• A 106% rise in the number of sales over $1 million between June 2014 and June 2015 – from 404 vs 835

REINZ, the most up to date source of real estate data in New Zealand, announced today that there were 7,426 dwelling sales in June 2015, up 29.2% on June 2014 but down 7.0% compared to May.

The national median price was $450,000 for June, an increase of $23,000 or 5.4% compared to June 2014 and a decrease of $10,000 or 2.2% from May. Excluding the impact of the Auckland region, the national median price was steady at $340,000 compared to June 2014 and down $9,000 (2.6%) compared to May.

Real Estate Institute of New Zealand (REINZ) Chief Executive Colleen Milne says, “There is increasing evidence that Aucklanders are looking out of the region for properties, both as owner-occupiers and for investment properties. Regions such as Northland and Waikato/Bay of Plenty have recorded significant drops in the volume of properties for sale over the past six months, with Aucklanders increasingly being identified as a significant buying group in these regions. Further afield, there is increasing evidence that Aucklanders are making up a larger portion of total buyers.”

“Prices are continuing to rise within Auckland and the inventory situation is very tight, with less than 10 weeks of stock available. Data shows that sales in the city in the ‘affordable’ price brackets are a lot quicker than the regional median of 29 days to sell. A reduction in the number of offshore buyers due to requirements to have a New Zealand bank account and an IRD number may be having some impact at the top end of the market, but for the bulk of the market the trends evident over the past 12 months show no signs of abating.”

Sales Volumes
There were 7,426 unconditional residential sales in June, a 29.1% increase on June 2014 and a decrease of 7.0% from May. On a seasonally adjusted basis, the number of sales rose 0.1% from May to June, indicating June sales were in line with trends typical for this time of year.

Sales volumes excluding Auckland were down 4.5% from May and up 35.0% on June 2014. On a seasonally adjusted basis, Auckland’s sales volumes were down 3.9% compared to May, indicating that sales volume was stronger outside of Auckland.

Four regions recorded increased sales volumes compared to May, with Northland volumes growing 15%, followed by Manawatu/Wanganui with 7% and Waikato/Bay of Plenty with 4.0%. Compared to June 2014, all regions recorded increases in sales volume, with Waikato/Bay of Plenty recording the largest of 74%, followed by Northland with 61% and Manawatu/Wanganui with 52%.

Prices
The national median house price fell $10,000 (2.2%) from May to June, to $450,000. In comparison with June 2014 the national median house price increased by $23,000 (5.4%), with 10 regions recording increases. Excluding the Auckland region, however, the national median price fell $9,000 (2.6%) compared to May and was steady at $340,000 compared to June 2014. On a seasonally adjusted basis, the national median house price fell 0.9% compared with May and rose 5.6% compared to June 2014.

Auckland recorded the largest percentage increase in median price compared to June 2014, at 26%, followed by Southland at 24% and Central Otago Lakes at 11%. Manawatu/Wanganui recorded the largest percentage increase in median price compared to May, of 5%, followed by Canterbury/Westland with 5% and Taranaki with 3%.

Auctions
There were 1,610 dwellings sold by auction nationally in June, representing 21.7% of all sales and an increase of 613 on the number for June 2014. The 16,318 sales by auction in the 12 months to June 2015 represented 20.0% of all dwelling sales, compared to 20.1% (15,233) for the year ending June 2014.

Transactions in Auckland again dominated the auction market in June, representing 76% of the national total of auction sales. 43% of all dwelling sales in Auckland were by auction, compared to 30% in June 2014. Sales by auction in Waikato/Bay Of Plenty accounted for 12% of the national total, Canterbury/Westland accounted for 8% and all other regions combined accounted for the remaining 4%. .

Further Data
Across New Zealand the total value of residential sales, including sections, was $4.391 billion in June, compared to $4.845 billion in May and $3.082 billion in June 2014. For the 12 months ended June 2015 the total value of residential sales was $46.347 billion, the largest ever value of sales in a 12 month period. The breakdown of the value of properties sold in June 2015 compared to June 2014 is:

ENDS

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