New Zealand Property Market Snapshot
23rd January, 2017
According to the Real Estate Industry Association (REIA) and the latest index figures, residential property sales in New Zealand dropped by 9% in October 2016, and are now up to 14% lower than they were a year ago.
Further data from the Real Estate Institute of New Zealand (REINZ) shows a drop 16% in sales in Auckland, and a 25% drop in sales in the Waikato Bay of Plenty, year on year.
However, the decreased numbers of sales has not had any negative affect on median property prices. Five regions across New Zealand experienced record-breaking high median prices in October 2016:
- Auckland’s median property prices recorded a 5% increase, with the current median price of $868,000 showing an increase of 16% compared with a year ago
- Northland’s median property prices reached $399,000
- Waikato Bay of Plenty’s median property prices reached up to $460,7580, recording a massive 21% increase
- Southland equalled its record high of $255,000, first reached in January 2008
- The Central Otago Lakes regain recorded a massive 42% increase in house prices.
These numbers point to a healthy demand for property throughout New Zealand, despite the drop in sales, and a positive outlook for the New Zealand property market. The strong performance in the regional markets offsets the 1% drop in prices on a national level, particularly considering that the national median house price is still up 10.9% compared to October 2015.
Compiling these property market snapshots is an important part of Kent Relocation’s objective to provide clients with information on which they can rely to make important decision when it comes to relocating their employees. We only use information from respected, reputable sources, ensuing our clients have the most reliable, up-to-date information possible.
Source: REIA Newsletter, December 2016