discrepancy between Auckland house market and rest of NZ

Price per square metre reveals wild discrepancy between Auckland house market and rest of NZ

Auckland homes cost 75% more per square metre than two years ago, while costs dropped in Wellington

AUCKLAND, 14 September 2015 – Just how different the Auckland house market is compared to the rest of New Zealand is revealed by an analysis of homes advertised on Realestate.co.nz, New Zealand’s largest property listing website. The results compare the average size and asking price for houses and townhouses (excluding apartments) offered for sale on Realestate.co.nz in the first half of 2013 with the corresponding figures for 2015.

The price of houses and townhouses for sale in Auckland increased by more than 75% per square metre from 2013 to 2015. The corresponding price per square metre for Wellington actually decreased by 2.6%, where home sizes remained unchanged at 156m2, but the average asking price came down slightly, from $526,722 to $512,258.

Canterbury saw only a 3.6% price increase per square metre. While the average asking price of houses in Canterbury increased by 7.3% – from $451,987 to $485,027 – the increase in price per square metre was mitigated by a growth in average house sizes, from 152m2 to 158m2.

“The reduction in the average size of Auckland homes reflects the greater popularity of smaller townhouses, as well as infill housing coming onto the market,” says Brendon Skipper, CEO of Realestate.co.nz.

In 2013, the average Auckland home offered for sale had a floor area of 158m2, with an average asking price of $762,784, or $4,827 per square metre. By 2015, the average size has reduced by 44m2 to 114m2. Given the average asking price increase to $970,789, the price per square metre has risen to $8,493 – an increase of more than 75% since 2013.

House sizes in rest of country show conflicting trends

The average size of homes in other parts of New Zealand does not display a uniform trend. The average home for sale in Marlborough is now 21m2 smaller. Homes in the Coromandel are 20m2 smaller, while those in Nelson Bays are 12m2 smaller, and those in Northland are 11m2 smaller. At the same time, the average home size in Central Otago has increased by 16m2 to 215m2. Taranaki homes are also 16m2bigger, reaching an average size of 151m2, while home sizes in Wairarapa increased by 15m2 to 134m2.

While home sizes have remained relatively constant elsewhere, increasing prices meant that the cost per metre has risen in 12 of the 19 regions, sometimes significantly. In the Coromandel, homes now cost 35% more per square metre than two years ago, in Marlborough nearly 15% more, while in Northland, Otago and Southland, the price per square metre has risen by over 12%.

Only in three areas has the price per square metre dropped notably: Wairarapa (-7.7%), West Coast (-6.4%) and Taranaki (-5.1%).

ENDS

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