$215,000 – median annual increase in Auckland’s Top 20

$215,000 – median annual increase in Auckland’s Top 20

Top 20 hot spots median sale price up $215,000 (24%) in 2016

Mission Bay up 53% ($620,000)

North Shore and coastal areas dominate this list featuring 6 and 12 times, respectively

In Auckland’s ‘top 20’ suburbs the median sales price* was up $215,000 (24%) in 2016 from the year before, according to the latest list of real estate ‘hot spots’ released by Barfoot & Thompson.

The company’s list of ‘top 20’ suburbs is based on greatest percentage value growth, comparing median sale prices for 2016 with 2015. It features 12 coastal suburbs, and is dominated by the North Shore and areas beyond the traditionally popular inner-city suburbs. Eighteen suburbs are new to the top 20. Value gains were across high and low-end suburbs.

Mission Bay took the number #1 spot with its median sales price up 53% to $1,787,500 and $620,000 higher than in 2015. The remaining top 20 increased between 22 and 37% or $120,000 to $432,500.

“Real estate sales prices continued to rise throughout 2016, with the rate of increase slowing slightly towards the end of the year. Mission Bay increased by around a third more than any other area,” says Peter Thompson, Managing Director Barfoot & Thompson.

By contrast, in some areas outside of the top 20, median sales prices were lower than the previous year. In Freemans Bay which was last on the list at #113, the median sales price was $554,000, down 54% or $661,000 from $1,215,000 in 2015. In 2016, 122 sales were completed in the area and were mostly apartments, compared with 22 sales in 2015, mostly made up of traditional standalone homes.

“There is a building boom in Auckland. People are also investing in and renovating before they sell. The result is more apartments, and new or higher-end homes. If any of these things are happening in an area it will affect the median sales price,” says Mr Thompson.

“This can make it much harder to gauge value in an area. It’s important to understand the whole picture and it’s this breadth of knowledge that our local salespeople have.”

Six North Shore suburbs – Takapuna, Belmont, Castor Bay, Rothesay Bay, Albany and Browns Bay – feature in the list, the most of any Auckland region. Takapuna was the North Shore’s hottest suburb with the median sales price up $37% or $365,000 from 2015 ($1,355,000 vs $990,000). Many central suburbs which showed strong growth in 2015 dropped down the list. Orakei fell from its #1 spot in 2015 to #108 ($2,109,947 vs $2,050,926; 38 vs 27 sales).

“Over time different areas have their time in the sun. The rise and fall of suburbs in the list demonstrates the cycle of growth. While January sales data shows Auckland prices are steady, growth may have peaked for now in some areas whilst others may continue rising,” says Mr Thompson.

“A definite trend is growth in areas outside inner city suburbs, particularly the North Shore last year. Buyers are looking further out and perhaps trading off a central location for other lifestyle factors. Twelve of the Top 20 are coastal, which is not surprising given New Zealanders love of the water.

“In our experience most of the time buying and selling is based on more than numbers. Kiwis have a longstanding love of property. While the numbers tell an interesting story, they certainly don’t predict the future.”

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