ANNUAL ME DIAN PRICE CHANGES
P R O P E R T Y M A R K E T U P DAT E
SPRING IS HERE, MARKET BOUNCES BACK FROM LOCKDOWN
$
$
Record Median Price
BY J E N B A I R D,
$
$
23.4%
NORTHLAND
17.0%
BAY OF PLENTY
23.6%
12.3%
28.4%
37.7%
MANAWATU / WANGANUI
$
The number of residential
than in September 2021 (1,389).
Jen Baird, Chief Executive at
property sales across New Zealand
Despite prolonged restrictions, the
REINZ, says: “October shows a
decreased by 21.7% year-on-year,
Auckland market seems to have
marked increase in sales activity on
from 9,185 in October 2020 to 7,190
found its rhythm again. The ability
September and August, boosted
in October 2021. However, there
to conduct business remotely and
by the usual spring uplift. While
was a significant increase in sales
eased restrictions around viewings
across New Zealand, sales activity
month-on-month — up 30.3% from
have enabled real estate continuity,
decreased year-on-year by
September (5,518). October’s sales
while a general FOMO (fear of
21.7%, there was a 30.3% increase
activity shows a market revitalised
missing out) stokes a market that
month-on-month. Auckland saw
by easing COVID-19 restrictions,
remains strong.
the most significant uptick in
the spring lift and growing confidence in vendors and buyers to make decisions about their housing. For New Zealand, excluding Auckland, the number of properties sold in October 2021 decreased 22.5% year-on-year to 4,614 (October 2020: 5,951). Again, sales increased month-on-month by 11.7% (September 2021: 4,129). In Auckland, the number of properties sold in October decreased by 20.3% year-on-year (October 2020: 3,234, October 2021: 2,576). The increase
Tasman had its highest sales count since November 2020, and Bay of Plenty had its highest since March 2021. The regions with the greatest annual percentage decrease in sales volumes were: • West Coast: -55.2% (from 58 to 26 – 32 fewer houses). The region’s lowest sales count since April 2020 and its lowest October month sales count in six years
October than in September 2021. Despite the restraints the market is operating under, this is a stronger than average October month. We’re seeing the continuation of what is a
“Lockdown restrictions are having a reduced impact. Real estate professionals have the resources to conduct business remotely, and customers/clients have the
• Northland: -40% (from 290 to 174 – 116 fewer houses). The region’s lowest October month sales count since 2012
market’s resilience, with 85.5%
• Marlborough: -38.9% (from 108 to 66 – 42 fewer houses).
C21 MARKET PULSE
with 85.5% more properties sold in
firm market, despite the pandemic.
month-on-month shows the more properties sold in October
month-on-month sales activity,
04
confidence to move forward to make decisions. Steps by the Government — as advocated for by REINZ on behalf of members — to enable more private property viewings at Alert Level 3, for example, have helped – especially
CENTURY 21
10.0%
26.8%
28.6%
14.5%
TASMAN
$
WELLINGTON
MARLBOROUGH
31.0%
WEST COAST
$
$
HAWKE’S BAY
NELSON
Property market rebounds in October following a September dip as activity increases and prices remain strong, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand.
$
GISBORNE
TARANAKI
34
23.9%
WAIKATO
31.1%
MEDIAN DAYS TO SELL:
REINZ CEO
25.0% AUCKLAND
NATIONAL MEDIAN PRICE:
$895,000
19.3%
$
$
CANTERBURY
21.6%
11.8%
SOUTHLAND
$
OTAGO Source: REINZ Monthly Property Report 11 November 2021 .
in areas longest affected by
“Various levels of lockdown across
increased by 23.4% to $895,000
tighter lockdown. Less stringent
New Zealand have influenced
in October 2021 compared to
restrictions equate to more activity.
activity in the real estate market this
$725,000 in October 2020. Ten out
month lending to mixed results. We
of 16 regions reached median price
expect to see a rise in activity as
records, and one had an equal price
restrictions ease further, especially
record — the most since March
in Auckland. Demand suppression
2021. The number of price records
measures introduced this year,
is above average for an October
recent moves by the Reserve Bank
month, reflecting a firm market
to increase the OCR, and COVID-19
reinforced by continued demand.
“Comparing listing and sales activity over this lockdown to the country’s first one in 2020, shows a sharp difference. Namely, the impact has not been so severe, and the recovery has been quicker. “October is the beneficiary of increased listings in the month prior. It is expected that sales activity across New Zealand will continue to rise in the coming months, as restrictions ease further, travel limitations lift and those who previously held back listing their property do so. The demand is certainly there,” Baird observes.
restrictions to real estate activity are creating headwinds for house prices and we can see that the pace of price rises has slowed over recent months,” Baird concludes.
STEADY INCREASE IN MEDIAN PRICES ACROSS NEW ZEALAND Median prices for residential property across New Zealand
C21 MARKET PULSE
05
CENTURY 21
Click here to read the full report.
