Great news for Auckland home owners: average value to top $1m soon

Everyone is always going on about those poor people that can’t afford their first home.  But they forget about the home owners that are going to be cleaning up, and then some, under National

Auckland’s housing market is heating up again, despite continued efforts to curb investor activity failed.

To buy the “average” house in the super city, you will now have to part ways with $955,793 – an increase of 3.3 per cent over the past three months, and 15.4 per cent year-on-year.

This increase has prompted a warning by QV that if values continue to rise at the same rate throughout the year, then by June 2017 the average value will top $1 million.

QV national spokeswoman Andrea Rush said residential property values were rising rapidly across Auckland – again.

“Migration is continuing at the highest levels seen in 100 years and this population growth coupled with growing demand from investors, means housing supply, particularly in Auckland and Queenstown, is not able to keep up with demand and this is driving values ever higher.”

House values in Auckland are now 74.9 per cent higher than the previous peak of 2007, but when adjusted for inflation that figure drops to 49.1 per cent.

“While it is clear Auckland needs more housing, both within the existing urban metropolitan boundary and on ‘future urban’ zoned land, as well as new infrastructure to service it, it appears to be investor demand that’s driving the rapid value growth in Auckland and other parts of the country.”

Nationwide, the average house price sits at $577,829 – up 12.4 per cent over the past year.

Rush said house prices continued to “accelerate”  in many other parts of the country, with most of the activity driven by strong demand from investors.

“Tauranga, Hamilton, Wellington, Dunedin and Queenstown values continue to see particularly strong very growth, as do many other regional centres and smaller towns located within commuting distance of these main centres

So the poor are still poor.  Nothing new there.  But “middle New Zealand” is looking at a retirement in the provinces with half a mil in the bank when they cash up out of Auckland.

 

– Stuff


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

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