tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 1st, 10:39AM

News

rss
Latest Headlines

Demand for big city property falls

Growing number of properties on the Auckland market is a reflection of an ongoing fall in big city buyer demand, new realestate.co.nz data suggests.

Wednesday, March 1st 2017, 11:00AM

by Miriam Bell

The real estate website’s data shows that demand for property in Auckland declined by 10.8% in February.

Realestate.co.nz spokesperson Vanessa Taylor said demand in the city has now fallen for 12 consecutive months.

At the same time, new listings were up by 2.2% year-on-year, while inventory now sits at 18 weeks as compared to 16 weeks in January.

However, prices in the city continue to rise.

The average asking price for an Auckland house was up by 0.8% to $950,446 in February, as compared to $943,002 in January.

The average asking price for an Auckland apartment reached a record $711,892 in February.

Taylor said they have seen the cost of Auckland houses moving upwards and now the average asking price for an apartment in the city has hit an all-time high.

“For many buyers, it could well be a matter of embracing apartment living, accepting the reality of today’s asking prices, or looking to move or invest in another region.”

It seems that it could be the regions which are poised to benefit from this as New Zealand’s second biggest city has also seen a fall in demand recently.

Realestate.co.nz’s data shows that demand for Wellington property fell by 18.8% in February, while inventory in the city increased to nine weeks from six weeks in January.

But the Capital’s average asking price went up by 0.5% to $559,569 in February, as compared to $556,807 in January.

In stark contrast, the data shows that the top regions people have been looking at property in are the Hawkes Bay, followed by Otago, Gisborne and Manawatu-Wanganui.

The increase in demand in those regions is 7.5%, 8.6%, 17.0% and 23.6% respectively.

Taylor said a drop in big city demand indicates that it’s not just retirees who could be considering cashing up and moving away from cities like Auckland.

“With technology and internet advancements the way they are, and with more people working from home, it is now more feasible for young people who still need to work to do so remotely from the regions.

“Younger house hunters who can’t afford big city prices now have another consideration set.”

Despite this, the total number of houses for sale nationwide lifted for the second month in a row in February.

ASB economist Kim Mundy said rising national inventory levels were being driven by the increase in Auckland inventory which is now at its highest level since October 2012.

The new investor LVRs and recent lifts in long-term mortgage rates could also be weighing on demand, she said.

“We expect housing activity to continue to cool over 2017 and, as a result, inventory levels could continue to climb slightly higher.

“However, from a historical perspective inventory levels remain very low and, combined with strong population growth, this will continue to support house prices.”

 

« Migration smashes through recordsFree Investment Property Showcase Events: Auckland, Wellington and Christchurch »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com