Ruler run over regional differences

Auckland and Christchurch are the strongest property markets in the country - but aren't as far ahead of the pack as some might think, says BNZ’s chief economist, Tony Alexander.

Friday, June 20th 2014, 12:00AM

by The Landlord

In his latest Weekly Overview, he has compared turnover, prices and days to sell in 12 regions around the country.

Alexander said while the data showed that Auckland and Canterbury were the strongest markets, it was not by much, especially when it came to sales turnover.

“Falls in all regions from a year ago are within ballpark of each other so one could not really say that the regions have been hit more than Auckland or Canterbury.”

When the three months to May were compared to the same period last year, Taranaki reported the biggest drop in sales, with more than 20% fewer.

It was followed closely by Manawatu/Wanganui and Otago. Auckland had 15% fewer sales. The country as a whole reported a drop of just under 15%.

There was more difference when it came to prices.

Alexander said: “The housing type adjusted price index for all NZ was 1.2% lower in May than April and up just 6.5% from a year earlier. This is the slowest annual pace of house price inflation since September 2012.”

Canterbury and Auckland reported average prices for the three-month period more than 10% higher than the same period the year before. Northland was close behind, with just under 10% growth, followed by Waikato/Bay of Plenty.

Wellington, Nelson, Central Otago Lakes and Otago were also ahead of where they were last year.

Only Hawkes Bay, Manawatu/Wanganui and Southland reported a drop in prices, year on year.

Days to sell showed a more mixed story, with only Auckland, Taranaki, Canterbury and Central Otago Lakes coming in under the 10-year average. Southland, Manawatu/Wanganui and Southland recorded a days to sell measure more than 10% higher than their 10-year average.

Alexander said: “Out of these three sets of information we can broadly say that the weakest markets are Hawkes Bay, Manawatu/Wanganui, and Southland. Wellington also remains a tad soft. The strongest markets are Auckland and Canterbury, but not necessarily by all that much.”

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