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OneRoof.co.nz
MARKET OVERVIEW
Northland
25%
Auckland
24%
WHITE-HOT HOUSING MARKET HAS NZ AT FEVER PITCH
Waikato
Bay of Plenty
25%
26%
Gisborne
39%
TTaranakii Taranak
Hawke’s Bay
25%
From gloom to boom to gloom again – the housing market’s performance in the 12 months since the Covid-19 lockdown lifted has brought joy to some and frustration to others. OneRoof editor OWEN VAUGHAN reports on unprecedented price rises.
I
t's now been a full 12 months since New Zealand's property market opened for business again after more than two months of Covid-19 restrictions brought the real estate industry to a standstill. Back in May 2020, the future of the housing market was far from certain. Sales were happening and the crowds were back at the open homes, but the overall sentiment was that any surge in the market would be short-lived. But a potent combination of record low interest rates and the removal of home loan restrictions, as well as travel restrictions curbing Kiwi spending, saw a rush of buyers enter the market and house prices grow at their fastest pace in years. This in turn led to a series of government and Reserve Bank measures aimed at slowing house price growth. According to OneRoof’s latest snapshot of the housing market, New Zealand’s median property value — or typical house price — has jumped 25% in the last 12 months to $779,000, in effect adding $154,000 to the cost of buying a home. The figures, from OneRoof and its data partner Valocity, show Manawatū-Whanganui is the country’s hottest property market, with the region’s median value rising 41% — or $158,000 — to $548,000. Also feeling the heat are Gisborne (up 39% to $549,000), Marlborough (up 35% to
$622,000), Hawke's Bay (up 34% to $681,000) and Greater Wellington (up 33% to $888,000). Auckland house prices — the focus of national concerns around housing affordability — saw the biggest dollar leap since the end of the first Covid-19 lockdown. The city's median value jumped $219,000 in the last 12 months to a new high of $1.114 million. For first-home buyers, the increase represents an extra $43,000 in deposit over the 12-month period. The post-Covid boom has radically altered the shape of the housing market. New Zealand now has 20 suburbs where the median property value is $2m or above. That's up from four a year ago and 11 three months ago. And another 13 suburbs are likely to join
them soon. Whitford, in Auckland eastern fringes, has joined Herne Bay in the $3m club, with St Marys Bay and Coatesville, all in Auckland, and Oriental Bay in Wellington on their way to crossing the West Coast threshold. A year 17% ago, no suburb had a median
ManawatuWhanganui
41%
Nelson
20%
Wellington Tasman
20%
Marlborough
Canterbury
19%
35%
14%
Southland
25%
The different colours on the map show the extent of the house price changes for each New Zealand region.
40%+ 35%+ 30%+ 25%+ 20%+ 15%+ 10%+
20 sales or more in the last year, 284 — or 32% — have median property values of $1m or above, up from 197 last quarter and 118 a year ago. For many homeowners, this is a significant boost to their real estate For those not on 40%+ Whatfortunes. the the property ladder, the goal of map tells you 35%+ owning a house, even in a low The different colours 30%+ on the map interest rateshow environment, may the extent of the 25%+ seem housefurther price off than ever. changes for eachjust 16% of 20%+ In Auckland, the New Zealand city's suburbs have median 15%+ region. property values of less than 10%+ $1m. That's down from 25% last quarter and 52% a year ago. In the year since lockdown ended, house prices in many Auckland suburbs have accelerated more than 40%. The change can be seen in the other major metros:
Latest median value
12-month $ change
12-month % change
Highest sale last 12 mths
Extra deposit required since May 2020
$779,000
$154,000
25%
$24,000,000
$30,800
$1,114,000
$219,000
24%
$24,000,000
$43,800
Bay of Plenty
$792,000
$162,000
26%
$5,875,000
$34,400
Canterbury
$543,000
$88,000
19%
$9,000,000
$17,600
Gisborne
$549,000
$154,000
39%
$2,150,000
$30,800
Hawke’s Bay
$681,000
$171,000
34%
$4,450,000
$34,200
Manawatu-Whanganui
$548,000
$158,000
41%
$2,250,000
$31,600
Marlborough
$622,000
$162,000
35%
$3,000,000
$32,400
Nelson
$692,000
$117,000
20%
$3,000,000
$23,400
Northland
$667,000
$132,000
25%
$5,650,000
$26,400
Otago
$623,000
$78,000
14%
$10,500,000
$15,600
Southland
$399,000
$79,000
25%
$1,550,000
$15,800
Taranaki
$523,000
$103,000
25%
$2,560,000
$20,600
Tasman
$757,000
$127,000
20%
$4,720,000
$25,400
Waikato
$726,000
$146,000
25%
$5,000,000
$29,200
Wellington
$888,000
$218,000
33%
$4,310,000
$43,600
West Coast
$269,000
$39,000
17%
$1,200,000
$7,800
Auckland
Otago
33%
value of $3m or more and Herne Bay, long the country’s most expensive place to buy a home, was half a million dollars away from becoming the first. Its median value is now $3.31m — up almost $800,000 this time last year. The figures show that of the 871 New Zealand suburbs with
New Zealand
What the map tells you
34%
