July produces strong result for Auckland property market

The Auckland property market has produced a strong result in what is traditionally a quiet time of the year for residential sales, with good volumes and prices against a backdrop of a looming listings shortage.

Thursday, August 4th 2005, 11:13AM

The latest figures from Auckland real estate company Barfoot & Thompson show that July proved to be a very positive month for property sales in Greater Auckland.

There were more than 1,000 individual transactions, which was 13% ahead of the same time last year. Barfoot & Thompson director Peter Thompson says it's no surprise that the generally positive market conditions flowed through into the prices that were achieved.

"The average sale price for July was up significantly on both May and June. The July average price was $457,530 compared to $443,286 in June and $427,299 in May.

"The latest figures show there is still plenty of interest and activity in Auckland property even through the winter months. But one of the key factors driving prices at the moment is a shortage of listings," Thompson says.

Barfoot & Thompson had 4,300 properties on its books at the close of July. The last time the company's stock levels were consistently this low was back in 2003 when the market was at the height of its buoyant phase.

"Potential vendors may have been put off by some of the recent negative comments about the property market, or they may have decided to sit it out until after the election. The reality is that good prices are being achieved in the market right now because there are plenty of potential buyers who don""'t have a lot to choose from."

In the rental market, the July result was consistent with the clear trend towards lower rental prices this year. The July average weekly rent was $332, down from $336 in June, and has remained below $340 for the past three months. 640 houses and units were let during the month.