Auckland Property Market Update

7 December 2004

Auckland Property Market Update

Barfoot & Thompson’s latest sales data shows the Auckland property market continuing its steady run with the average price rising for the second month in a row.

Barfoot & Thompson sold 1,024 properties during November, the largest volume of monthly sales for the past six months. The average price for the month was $439,215, up from $428,182 in October. However, the November average was skewed by the sale of a piece of land worth more than $4 million. When that sale is excluded the average becomes $435,460.

Director Peter Thompson says, “The market is producing stable results with property prices continuing to edge forward. The number of available listings has increased, in line with the traditional Spring flush of new properties onto the market.”

More than 40 percent of the Auckland properties sold by Barfoot & Thompson during November were for over $500,000, and almost 15 percent sold for more than $1,000,000.

Mr Thompson says, “While the majority of the company’s business comes from the sale of mid-range properties, Barfoot & Thompson made a significant strategic move during November to target the upper end of the North Shore property market through the establishment of the Barfoot & Thompson North Shore Elite Homes branch in Takapuna.

“The new branch lists properties priced above $625,000 with the goal of achieving an average sale price in the $800,000 to $1,000,000 range. This area represents an important growth opportunity for the company. We already have a higher than average market share on the North Shore but there is an opportunity to attract more of the higher priced listings. The ‘Elite’ branch is operating as a complementary but separate business to our other North Shore branches which list and sell across the whole price range.”

In the rental market, average weekly rent eased to $333 from $341 in October. The number of houses and units let during November was 628, up from 608 the previous month.

ENDS

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