Number of $million homes across New Zealand skyrockets

Press Release
30th November 2016

Number of $million homes across New Zealand skyrockets

New figures released by property valuation platform, myvalocity, for October show the number of New Zealand homes with an estimated value of over $1 million has increased four-fold since 2013.

The figures illustrate the extent of the property boom in the last three years which, despite the unusual Spring slow-down, has seen an estimated $245 billion* created in additional equity for home owners.

myvalocity valuations show the number of homes across New Zealand with an iVal** (estimated value) of over $1 million increased from 59,000 homes in 2013 to 235,000 properties in 2016 – an increase of 398%.

Auckland saw one of the biggest increases in residential homes joining the ‘million-dollar club’ with 186,933 homes now estimated to be valued at over $1 million – up from 45,868 homes in 2013. myvalocity’s iVal estimates homes with a value of over $1 million now equates to 41% of all Auckland residential properties – up from 11% in 2013.

Others areas that have seen a significant increase in the number of (estimated) million dollar-plus homes include Tauranga, Queenstown, Rotorua, New Plymouth and Hastings. [see graph1, p3]

myvalocity CEO Carmen Vicelich says whilst there are clear signs over recent months from the company’s median property sales and volume data that the market is pulling back, the heat generated in the market in recent years has seen values across the country move to a new level.

“Whilst we are still seeing some growth in most parts of the country, it appears things are starting to level off. However, growth in the last couple of years has changed the valuation landscape quite significantly as many homes have moved up to new pricing brackets due to a supply issue that started in Auckland and moved out to the regions.”

In addition, a number of new ‘high-end’ homes have been built in recent years which has had an impact on overall valuations. Our analysis in Auckland alone has seen the median sales price of a newly built home increase from $450,000 in 2013 to $1,010,000 in 2016.”

According to myvalocity figures for October, sales of homes over $1 million in Auckland now represent over a quarter of all sales.

“The fact that there is still a lot of activity in the $million-plus price bracket is one of the reasons we are yet to see a significant decrease in Auckland’s median sales price,” says Mrs Vicelich. “We expect the next few months, which is traditionally a peak sales period, to further clarify where the market is headed.”

For more Data Insights – please see the myvalocity monthly report attached.

Editors Notes:
*This is an estimate by myvalocity based on an iVal of all residential properties across New Zealand in 2013 and 2016.

** an iVal is a computer generated valuation that uses data analytics to determine what a property is worth using modelling and available sales and other property data. AVM’s are used by banks to make lending decisions and is also available to individuals who want an accurate idea of a property’s worth in place of getting a full registered valuation.

ends

Graph 1: Number of $million homes

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