Property prices: what goes up... and down

Property prices

WHAT GOES UP... AND DOWN...

If necessity is the mother of invention, uncertainty is a killer of markets. In previous editions of our Design & Build Franklin annual, we’ve been able to offer reasonably ‘on the level’ forecasts for house prices for the year ahead; this time it’s more a case of up in the air.

Fuelled (in part) by rising interest rates (designed to offset inflation), property prices have dropped across the country after years of increases. However, some buyers (facing inflation and shortages of building supplies) appear reluctant to commit to purchasing homes. While price is important to buyers, affordability is crucial.

“As interest rates have increased, and credit is harder to attain, the housing market is firmly in retreat following an exceptional period of growth,” CoreLogic’s Nick Goodall explained in October 2022. “Values increased 41 per cent over a 19-month period when the pandemic closed borders and fiscal and monetary stimulus drove a push to asset ownership.”

With regards to the Auckland market, Mr Goodall noted (as this issue was finalised) signs that the rate of price falls was set to stabilise but he could not confirm that we had turned a corner.

“Despite the rate of decline easing in September, it’s probably too early to suggest the housing market has moved through the worst of the downturn,” he added. “That said, as long as unemployment remains low, the market is likely to be in an orderly correction rather than outright slump.”

Heading into summer 2022, Jen Baird from REINZ (Real Estate Institute NZ) stated:

“Following an exceptional period of growth last year, spurred by government stimulus and closed borders seeing Kiwis invest locally, the property market is moderating. Owner occupiers remain a strong buyer pool and agents in some areas report seeing more first home buyers in the market, enticed by easing prices and less competition. However, property prices are still unaffordable to many, particularly in larger hubs, such as Auckland and Wellington.”

Although expert opinion appears (somewhat) divided regarding the specifics, uncertainty can’t last forever and a ‘new normal’ should become established in the property markets; there must be an end to any tunnel, even if we’re not sure whether

SNAPSHOT: House prices prior to the release of this issue of Design & Build

we can yet see the light.

Up to date real estate market statistics are accessible online at www.corelogic.co.nz as well as via www.reinz.co.nz.

And, because there’s no substitute for on the ground knowledge, be sure to consult with local real estate agents to help bring the big picture into focus.

Modern, chic

and low maintenance.

Compact and low maintenance, yet luxurious and spacious with all the modcons, Landmark Homes Auckland South-East Showhome offers the best of both worlds.

Designed with the future in mind, this sophisticated and stylish duplex – based on Landmark Homes’ Rangitoto house plan – is situated in the thriving community of Paerata Rise. Conveniently close to Auckland city, yet with the charm of a relaxed country village, Paerata Rise is the ideal location for those seeking a welcoming community atmosphere.

“We wanted to create a solution for multi-generational living,” says Auckland South-East franchise owner Michael Walters. “We saw a gap in the market dedicated to designs suited to a range of needs and ages — whether they are downsizing or looking to create space for visiting children and grandchildren — this design fits these needs.”

From EV chargers installed in the double-car garage, external ramps for easy wheelchair access and internal lifts, this is a space that will function for years to come. For eager motorhome travellers, there’s plenty of parking space and the luxury of being able to ‘lock up and leave’ with the security that your belongings are safe within the community.

On either side of the duplex, walls of double-height concrete bricks anchor the building to the site. Above the front entrance, timber screening softens the space.

“This concrete brick continues into the interior of the home. It reduces the transmission of sound between units, ensuring privacy for the homeowners and resisting any fire damage,” Michael explains.

As you enter the home, you’re welcomed into a light and airy foyer. The exterior colour and material palette are repeated indoors, creating a sense of cohesion and calm. Stylish wallpaper mimics the hue of the opposite wall’ s concrete brick, while the carpeted stairs’ timber balustrade echoes the screening outside the front door. Tiled flooring provides luxury underfoot, guiding you towards the downstairs living area. Here, a central living room serves two bedrooms. Sliding glass doors open to the deck, capturing views of the park beyond, an extension of your backyard to share with the local community. An Airbnb, a guest room, a space for noisy teenagers? That’s up to you. This lower level has been carefully designed with multi-purpose contemporary living in mind.

Head to the second storey, by stairs or the lift, to the living area which is filled with light thanks to generous floor-to-ceiling windows stretching the width of the space.

“This living space is fitted out to host a party of people but to also feel comfortable for a couple. The sense of space is increased with the 12m2 deck, which overlooks the community park beyond.” Orientated north-west, this space is ideal for watching the sun go down over the neighbourhood.

On this upper level, the kitchen is truly the heart of the home. The light and bright palette is broken up with timber cabinetry and stainless steel appliances. Storage is plentiful with the addition of the scullery (which keeps the mess at bay), and floating timber shelves to display cookbooks and decor.

The main bedroom features a walk-through wardrobe, keeping the main space neat and uncluttered. The ensuite is fitted with a large tiled shower and vanity, providing ample space for independent living.

“The duplex design has been successful in producing a seamless connection with the neighbourhood thanks to carefully considered use of materials, colour and layout,” says Michael. “The added features included to future-proof this home means the homeowner will be able to enjoy it for years to come – that’s really special!”

The Landmark Homes Paerata Rise Showhome is now open and ready to inspire your own retreat. To view, call in to 1 Heaphy Lane, Paerata Rise, Thursday - Sunday from 11.00am - 3.00pm, or contact us on 0800 62 88 59 or 09 294 6411 today to make an appointment.

Or visit our Clevedon Showhome 167 Monument Road, Clevedon Open Saturday-Sunday 11.00am - 3.00pm

Alternatively, contact us at our Office 22 West Street, Pukekohe Open Monday-Friday 8.30 - 5.00pm