Lakes district most expensive for property

Auckland has been displaced by the newly formed Central Otago Lakes region as the least affordable district to buy property in New Zealand, according to AMP’s latest home affordability report.

Wednesday, November 2nd 2005, 9:21AM

This is the first time Auckland has fallen off the stop spot as the least affordable region since the index started publication in 1989.

However, the report says perspective must be placed on the change by comparing the size of the two regions. Total dwelling sales for Auckland in the current quarter were 8689 compared to 321 for Central Otago Lakes.

The report, carried out by the Massey University real estate unit, estimates it would take a person nine years of full income to buy a house in the Central Otago lakes district. For Aucklanders it would take eight and a half years.

The New Zealand median dwelling price reached another all time high in the September quarter, lifting 5.5% to $290,000 at the end of the quarter. House prices continued to rise in most regions over the September quarter.

The New Zealand home affordability index for September reflected a quarterly decline of 5.5%, a trend that has now occurred for six consecutive quarters.

The reports says that the median dwelling price reached a record high of $290,000 and the increasing prices remain the principle driver of declining affordability.

For the quarter, ten of the twelve regions reported a quarterly rise in median dwelling prices, as well as a decline in home affordability. Wellington reflected the steepest decline at 9.1%, followed by Southland (8.9%), Manawatu/Wanganui (8.1%), Waikato/Bay of Plenty/Gisborne (6.6%), Canterbury/Westland (5.6%), Otago (1.9%), Auckland (1.5%), Taranaki (0.3%), Hawke’s Bay (0.2%).

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