Home buyers turn to Hawkes Bay, Otago, Gisborne, Manawatu

1 March 2017

Focus for Kiwi home buyers turns to Hawkes Bay, Otago, Gisborne, Manawatu-Wanganui

Demand in Auckland falls for 12 consecutive months and apartment prices hit new all-time high

Regional New Zealand is tempting home seekers, while interest in cities such as Auckland and Wellington is declining, says realestate.co.nz spokesperson Vanessa Taylor.

“We’ve seen the cost of Auckland houses moving upwards and now the average asking price for an apartment in the city has hit an all-time high,“ she says.

Real-time market statistics from realestate.co.nz show that for the month of February the average asking price for an Auckland apartment hit an all-time high of $711,892, but is still more obtainable than a house in the city (average asking price $950,446).

“For many buyers, it could well be a matter of embracing apartment living, accepting the reality of today’s asking prices, or looking to move or invest in another region,” she says.

Auckland is experiencing a double digit fall in demand (10.8 per cent), as is Wellington (18.8 per cent). “Demand” is measured by taking the average number of listing views on residential properties over the last three months and comparing it to the same time last year.

Real-time demand statistics from realestate.co.nz show that the top regions people are looking are the Hawkes Bay, followed by Otago, Gisborne and Manawatu-Wanganui.

The increase in demand in those regions is 7.5 per cent, 8.6 per cent, 17.0 per cent and 23.6 per cent respectively.

What you get for your money in those regions for around the same price as an Auckland apartment is compelling.

• Hawkes Bay: architecturally-designed home set in total privacy on over 7.5 hectares of farmland including a paddock for horses. Three bedrooms. Hawkes Bay - http://www.realestate.co.nz/3012232

• Otago: Country home (easy commute to Dunedin City or Oamaru) 4.5 hectares with stunning views; three double bedrooms; http://www.realestate.co.nz/2949221

• Gisborne: Stunning Edwardian home set in over 8.5 hectares. six bedrooms, three bathrooms, billiard room, swimming pool, guest cottage in park-like gardens and tennis court sized lawn. 20 kilometres from Gisborne City. http://www.realestate.co.nz/2982042

• Manawatu-Wanganui: Lifestyle family set in 8,632 square metre location. Picturesque views. Four bedrooms. Designer kitchen. http://www.realestate.co.nz/3016900

“A drop in big city demand shows us that it’s not just retirees who could be considering cashing up and moving away from cities like Auckland,” says Vanessa.

“With technology and internet advancements the way they are, and with more people working from home, it is now more feasible for young people who still need to work to do so remotely from the regions. Younger house hunters who can’t afford big city prices now have another consideration set.”

The percentage growth of job advertisements on SEEK.co.nz show that in January 2017 compared with January 2016, there has been growth in all the top four regions where New Zealanders are looking for property on realestate.co.nz.

Attributed to SEEK.co.nz

ENDS

About realestate.co.nz

Dedicated only to property, realestate.co.nz is the official website of the New Zealand real estate industry. As a property listing site, the information it draws on for its property report is in real time. With the country’s most comprehensive selection of real estate listings, realestate.co.nz represents more than 97 per cent of all residential, commercial and rural properties currently marketed by real estate professionals.

Glossary of terms

Being the only provider of real estate data in real time, realestate.co.nz offers valuable property market information not available from other sources.

• Average asking price gives an indication of current market sentiment. Statistically, asking prices tend to correlate closely with the sales prices recorded in future months when those properties are sold. As it looks at different data, average asking prices may differ from recorded sales data released at the same time.

• Inventory is a measure of how long it would take, theoretically, to sell the current stock

at current average rates of sale if no new properties were to be listed for sale. It provides a measure of the rate of turnover in the market.

• New listings are a record of all the new listings on realestate.co.nz for the relevant

calendar month. As realestate.co.nz reflects 97 per cent of all properties listed through registered

estate agents in New Zealand, this gives a representative view of the New Zealand property market.

• Seasonal adjustment is a method realestate.co.nz uses to better represent the core underlying trend of the property market in New Zealand. This is done using methodology from the New Zealand Institute of Economic Research.

• Truncated mean is the method realestate.co.nz uses to provide statistically relevant asking prices.

The top and bottom 10 per cent of listings in each area are removed before the average is

calculated, to prevent exceptional listings from providing false impressions.

• Demand: the comparative view per listing change, by new listing in the previous 3 months compared to the same time last year

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