National House Prices Resilient

News Release 18 July 2003

National House Prices Resilient - Real Estate Institute

The New Zealand residential housing market median price showed resilience in the face of weaker sales during June, according to the Real Estate Institute’s National President, Mr. Graeme Woodley.

The national median for June stayed the same as May at $210,000 with larger metropolitan areas easing or staying flat but with several regions continuing to show residential house price growth, Mr. Woodley said.

“The seasonal softening was to be expected, and is reflected in the national transaction figure falling from 11,158 sales in May to 9,790 sales in June.

“However we still have a much more buoyant market than in previous years, with sales in the latest period being considerably up on the June 2002 figure of 7,486, and the June 2002 figure of 6,147.”

Low interest rates and the prospect of further falls based on the Official Cash Rate Announcement next week would continue to underpin the residential market, Mr. Woodley said.

Mr. Woodley said it was notable that the Auckland market, for some time predicted to soften, had resolutely defied gravity with the median ‘hanging on’ at $289,000 for June the same figure as for May.

“Auckland is trading strongly notwithstanding the seasonal softening which can be expected in the dead of winter, and it is instructive that the median continues to hold up in the face of huge apartment developments and sales.”

“Auckland, because of its sheer volume size had held the national median where it is, despite several provincial regions continuing to enjoy a growth spurt.”

Northland, Taranaki, Nelson Marlborough, Canterbury Westland, Otago and Southland all showed increases in their median prices, while Waikato Bay of Plenty and Gisborne, eased a little, as did Hawkes Bay, Manawatu/Wanganui and Wellington.

“Wellington is interesting in that, like Hawkes Bay, it exhibited quite a marked drop, but I suspect this is a seasonal issue rather than a sign of a falling market confidence.”

Wellington’s median fell from $235,000 in May to $220,500 in June while Hawkes Bay fell from $163,050 to $150,000 month on month.

The Northland median increased slightly from $167,000 in May to $168,000 in June, well up on the June 2002 figure of $154,000.

Auckland was level at $289,000 for May and June, still well up on the June 2002 median of $261,800.

Waikato Gisborne and Bay of Plenty slipped slightly from $178,000 in May to $176,000 in June, compared with $164,500 a year ago.

Hawkes Bay showed a puzzling drop from $163,050 in May to $150,000 in June, up on the June 2002 figure of $132,000, but according to Mr. Woodley “one shouldn’t read too much into this and it would pay to look at the figure for the next couple of months before reaching any conclusions”.

Manawatu/Wanganui was down slightly from $109,000 in May to $107,750 in June, but up on the figure of $105,000 a year ago. Taranaki looked strong in June up from $120,000 to $125,000, compared with the H June 2002 figure of $108,000.

Nelson Marlborough maintained its recent strength rising from $217,000 in May to $219,000 in June, a big step from the June 2002 median of $154,000.

Canterbury Westland was up from $157,000 to $159,500, well up on the figure of $140,000 a year ago.

Otago kept on with a median of $124,000 up on the May figure of $120,500 and the figure of a year ago of $110,000. Southland was up from $100,000 in May to $108,000, a big jump on the June 2002 figure of $78,500.

Sales figures were predictable with Auckland down month on month from 4,005 to 3,579, Wellington down from 1,178 to 938 and Canterbury Westland down from 1,567 to 1,285.

Auckland region medians showed interesting trends with North Shore continuing strong growth up from $331,000 in May to $339,000, Waitakere was up from $232,750 to $239,900, and Manukau was up from $276,000 to $290,000. But Auckland City was down from $371,500 to $355,000.

Mr. Woodley said the continual apartment development rollout in the Auckland CBD was probably responsible for the apparent fall in Auckland city median prices.

In Wellington, the Hutt Valley recorded a decrease month on month from $220,000 to $196,000, Northern was up from $270,000 to $288, 750, Western also grew from $342,000 to $386,350, Southern was up from $316,000 to $331,000, Eastern was also up from $317,000 to $340,500 but Central Wellington was down from $310,250 to $283,500, again apartment sales suspected of being responsible for the fall.

In Christchurch City central properties were up a little from $213,375 to $214,000, the North West Inner (Merivale, Fendalton and Ilam) median was strong at $315,000, up from $276,000 in May and the Christchurch City total was up from $172,500 to $181,750.

In Otago the Dunedin City median eased slightly from $125,000 in May to $124,000 in June

-ENDS-

Real estate information is also available via the Institute's official property directory - RealENZ - on the Internet. RealENZ is a search facility providing comprehensive information on residential, lifestyle, rural, commercial, investment and rental properties. RealENZ's Internet address is: www.realenz.co.nz

REINZ Market Report Regional Highlights:
Northland:
Northland’s June 2003 median house price at $168,000 remained relatively constant with May 2003’s $167,000 median and has significantly increased from last June’s $154,000. While the volume of sales eased to 294 in comparison to last month’s 304 sales, it had improved considerably from the 173 sales recorded in June last year. Fifty-eight sections changed hands in the June period, a slight fall compared to last month’s 64 sections sold.

Auckland:
The median price for Auckland of $289,000 was consistent with last month’s $289,000 and a marked improvement on June 2002’s $261,800 median. The number of houses sold decreased from May’s 4,005 sales to 3,579 for the June 2003 period, but was an increase on last June’s 2,657 transactions.

One hundred and ninety seven sections were sold for the month at a median price of $145,000, easing from last month’s 212 sections that changed hands in May at a median price of $150,000.

The North Shore’s housing market continued to strengthen with the median price reaching $339,000 for June 2003, gaining on both May’s $331,000 and last June’s $286,000 median. Sales for the region also showed improvement, reaching 733 sales, up from both May’s 690 and last June’s 564.

The median housing price for the Waitakere area also demonstrated growth, climbing to $239,900 compared to May’s $232,750 and June 2002’s $210,544. Despite the growth, the 538 houses sold was down on May’s 636, but was a significant improvement on last June’s 346 sales. Seventeen sections changed hands at a median price of $135,000, a fall compared to last month’s 35 sections, which sold at a median price of $150,000.

Auckland City’s house prices dipped to $355,000 for the month when compared to May’s $371,500, but was a considerable improvement on last June’s $300,000 median. Sales for the city also fell, from 1,364 for May to 1,092 for June 2003, but was an improvement on the previous year’s 863 recorded sales. The number of sections sold also dropped, reaching 28 sales at a median price of $205,000 compared to last month’s 32 sections that changed hands for a median price of $275,000.

House prices for the Manukau region surpassed last month’s and last year’s median price reaching $290,000 (May: $276,000; June 2002: 256,000). Meanwhile, the number of houses sold dropped from May’s 739 sales to 669 for June 2003, up from the prior June’s 507 recording.

Papakura’s median price of $200,000 remained stable with the prior month’s recorded median price of $200,000 and the previous year’s median price of $200,500. However, sales dipped slightly from May’s total of 93 to 87 for the June period, but strengthened on last year’s result of 64 sales.

The median house price for Metropolitan Auckland continued to improve, reaching $300,000 compared with last month’s $295,000 result and last year’s figure of $269,500. Meanwhile the sales volume for June showed improvement from last year at 3,119, compared to June 2002’s sales volume of 2,344, but had fallen significantly when matched to the May total of 3,522.

Waikato / Bay of Plenty / Gisborne:

The median price for the Waikato/Bay of Plenty/Gisborne area eased slightly to $176,000 compared to the prior month’s $178,000, but continued to strengthen on last June’s $164,500 result. Sales for the region decreased from May’s 1,655 sales to 1,558 for June 2003, but increased considerably when compared to June 2002’s sales volume of 1,072.

One hundred and seventy nine sections changed hands at a median price of $78,000 for June, a slight increase on the previous month’s 163 sections sold.

Hawke’s Bay:
The sales volume for Hawkes Bay eased from May’s 424 sales to 327 sales for June 2003, an improvement when compared to June 2002’s 287 sales. Houses prices also dropped to $150,000 for the month compared to last month’s $163,050 result, but continued to climb against the prior year’s median price of $132,000.

The number of sections sold for the month increased from 31 for May to 42 sections sold at a median price of $74,750 for June 2003.

Manawatu / Wanganui:
The number of houses sold in the Manawatu/Wanganui area reached a new high at 500 sales, up from May’s 486 and the 330 sales in June 2002. The median price for the region dropped slightly from the prior month’s $109,000 median to $107,750 for June, an increase compared to last June’s result of $105,000.
Twenty-nine sections changed hands for a median price of $53,500, an improvement on last month’s 24 sections that were sold at a median price of $50,000.

Taranaki:
Taranaki’s median section price continued its upward growth for the year, increasing to $125,000, up on both May’s $120,000 and last June’s $108,000. Sales for the area strengthened at 233, when compared with the previous year’s result of 175, but dipped when matched to last month’s 261 sales.
Meanwhile, 24 sections were sold at a median price of $73,500, a significant improvement on last month’s 16 sections sold at a median price of $61,500.

Wellington:
Wellington’s median sales price fell to $220,500, from May’s $235,000, but rose from last June’s median of $198,000. Sales for the city eased to 938 from the 906 sold in June 2002, and also decreased significantly from last month’s 1,178. Sixty-nine sections were sold at a median price of $85,000.
The Hutt Valley’s median sales price climbed to $196,000 when compared to prior June results (2002: $168,500; 2001: $181,000; 2000: $160,000), but eased from the previous month’s $220,000. This growth was reflected in the sales volume with 214 sales for June 2003, compared to last June’s 196, but showed a slight downward movement compared to last May’s 230 sales.
The median house price in Northern Wellington continued to rise, reaching $288,750, compared to last month’s result of $270,000 and last year’s $233,000. The number of houses sold was 94, a marked improvement on last June’s 80 sales, but easing when compared to last month’s 121 transactions.
Western Wellington’s housing price increased to $386,350, up from both the previous month’s $342,000 price and last year’s $285,000 recording. However, sales for the region showed a marked decline at 46, well down from May’s 70 and June 2002’s total of 67.
The number of houses sold in Southern Wellington fell considerably at 37 sales, compared to Mays’ total of 57 sales and June 2002’s 88 houses sold. Meanwhile, the median sales price continued to strengthen, reaching $331,000, a significant increase on both the prior month’s $316,000 and the prior year’s $256,250.
Eastern Wellington’s median sales price continued its upward pattern reaching $340,500, a considerable increase on both last year’s $261,000 and last month’s $317,000 result. Sales for the area however declined from 75 for May and 57 for June 2002 to 44 for June 2003.
Central Wellington’s sales remained equal with last June’s result at 67, however this was a significant drop compared to May 2003’s 118 transactions. The median sales price for June was $283,500, an increase on the prior year’s $250,000, but decreased on last month’s $310,250 median.

Nelson / Marlborough:
Nelson/Marlborough’s housing price climbed to $219,000, an increase of $2,000 on May’s $217,000 and a marked improvement on last June’s $154,000 result. However, sales for the region dipped from 375 for May to 326 sales for June 2003, while increasing on the 309 recorded in June 2002.
The median price for the Nelson East/West area stood at $229,000, a significant increase from last June’s $165,000 median, but a heavy fall compared to last month’s median of $275,000. The volume of sales was 107, a disappointment compared to May’s 128 results, but a steady increase on last year’s 99 sales.
Motueka’s median house price showed a continual climb, reaching $238,500 from May’s $202,500 result, also a significant increase from last June’s $148,000 median. However, sales for the area fell from 48 for June 2002 and 33 for May 2003 to 28 for the month.
The Marlborough Sounds region’s median price increased considerably from last June’s $200,000 result and last month’s $320,000 median to $365,000 for June 2003. Sales grew steadily, reaching nine sales for the month, compared to eight sales for May and five for June 2002.
The median housing price for the Marlborough/Kaikoura area rose to a new high of $185,000, topping both last month’s $168,000 median and last year’s $136,000 result. Meanwhile, while the number of houses sold dropped considerably from last month’s 141 sales to 119 for the month, it was an improvement on last June’s 107 sales.

Canterbury / Westland
The median sales price for the Canterbury/Westland area showed improvement, climbing to $159,500, from both May’s $157,000 result and last year’s $140,000 median. Sales for the region totalled 1,285, surpassing June 2002’s 960 sales, but was unable to match May 2003’s 1,567 result. One hundred and eighty four sections changed hands during the month for a median price of $90,500.
Christchurch City Central’s housing median exhibited a positive trend at $214,000, an increase from May’s $213,375 and the previous June’s $160,000 median. Sales for the month at 30 remained even with May’s 30 sold, but eased slightly from last June’s 40 sales.
The median price for the North East suburbs of Christchurch reached $175,000 for the month, up from both last month’s $169,000 result and last year’s $145,000 figure. Meanwhile sales for the area peaked at 81, surpassing both May’s 78 sales and June 2002’s 49 result.
Riccarton and Upper Riccarton’s median price of $167,500 was a marked increase on the prior June’s median of $157,500, but declined considerably from last month’s $199,000 median sales price. Sales for the month dipped from 30 in June 2002 and 38 in May to 27 in the latest period.
The 67 sales in the North Western Inner suburbs of Fendalton/Ilam and Merivale kept pace with last June’s 68 sales, but dropped significantly when compared to May 2003’s 91 sales. The median sales price of $315,000 surpassed both the prior month’s $276,000 and the previous year’s result of $265,000.

Otago
Otago’s median price steadily increased, reaching $124,000 for the month, up from both May’s $120,500 and June 2002’s $110,000. The sales volume of 453 was a decrease on May’s 552 sales, but compared favourably with June 2002’s 371 sales. Forty-eight sections changed hands during the month, a fall on last month’s 59 sales.
The median sales price for Dunedin City remained relatively firm at $124,000 sales, compared to May’s $125,000 median and was a marked increase on last June’s $110,000 median. Meanwhile, the volume of sales for June 2003 stood at 311, down on last month’s 332 sales, but up on last year’s 221 result.
Central Otago’s median price eased to $212,500 compared with May’s $222,500 result, but was a significant improvement on last June’s median price of $140,250. The number of houses sold declined from the 72 sold in June 2002 and the 84 sold in May 2003 to 56 sales for the June 2003 period.
The median price for the North Otago area continued to rise, reaching $87,000, up from the previous month’s $85,200 median and the previous year’s $82,000 result. However, the volume of sales dropped to 57, a decline of 20 sales when compared to last month’s 77 transactions, but compared favourably to last June’s 49 sales.
South Otago’s median house price reached a new high at $83,500, increasing on May’s $66,500 and last June’s $62,000 median sales price. Sales for the month remained even at 17 with June 2002’s number of sales, but considerably decreased from the prior month’s sales volume of 34.
East Otago’s median sales price dropped significantly from June 2002’s median price of $83,500 and May’s $85,000, to $60,750 for the month of June. Sales for the area settled to 12, keeping pace with last June’s 12 sales, but a noticeable decrease on May’s 25 sales recorded.

Southland
At $108,000, the median house price for Southland surpassed both the prior month’s median of $100,000 and the prior year’s median sales price of $78,500. The number of houses sold for the region at 297 remained strong in comparison to last year’s 246 sales, but was a marked decrease from last month’s 351 transactions.
Twenty-seven sections were sold at a median price of $128,000, a significant fall when compared to last month’s 91 sections, that changed hands at a median price at $133,000.

REINZ PROPERTY MARKET REPORT
TOTAL DWELLINGS MEDIAN PRICE COMPARISONS
FOR JUNE 1996-2003

REGION JUNE 00 JUNE 01 JUNE 02 MAY 03 JUNE 03
Northland 153,000 158,000 154,000 167,000 168,000
Auckland 236,500 253,000 261,800 289,000 289,000
Waikato/BOP/Gisborne 160,000 157,500 164,500 178,000 176,000
Hawke’s Bay 115,000 126,000 132,000 163,050 150,000
Manawatu/Wanganui 103,000 101,500 105,000 109,000 107,750
Taranaki 118,000 92,000 108,000 120,000 125,000
Wellington 190,000 195,000 198,000 235,000 220,500
Nelson/Marlborough 140,000 154,000 154,000 217,000 219,000
Canterbury/Westland 145,000 140,000 140,000 157,000 159,500
Otago 95,000 100,000 110,000 120,500 124,000
Southland 68,500 65,000 78,500 100,000 108,000
NZ Total 170,000 177,000 184,000 210,000 210,000

REGION JUNE 96 JUNE 97 JUNE 98 JUNE 99
Northland 115,000 134,000 140,000 146,000
Auckland 224,000 232,000 230,000 240,000
Waikato/BOP/Gisborne 130,000 149,000 154,000 155,000
Hawke’s Bay 114,000 121,500 124,000 128,000
Manawatu/Wanganui 104,000 98,500 99,000 96,500
Taranaki 96,000 100,000 97,000 96,500
Wellington 138,000 149,500 160,000 177,000
Nelson/Marlborough 138,500 132,500 144,000 138,000
Canterbury/Westland 135,000 141,000 137,500 140,000
Otago 99,000 104,000 95,460 95,000
Southland 73,250 79,000 72,250 90,000
NZ Total 145,250 162,000 165,000 172,000

TOTAL DWELLING SALES FOR JUNE 1996-2003
REGION JUNE 00 JUNE 01 JUNE 02 MAY 03 JUNE 03
Northland 137 172 173 304 294
Auckland 1,845 2,077 2,657 4,005 3,579
Waikato/BOP/Gisborne 847 858 1,072 1,655 1,558
Hawke’s Bay 219 206 287 424 327
Manawatu/Wanganui 294 314 330 486 500
Taranaki 118 135 175 261 233
Wellington 789 910 906 1,178 938
Nelson/Marlborough 183 261 309 375 326
Canterbury/Westland 677 724 960 1,567 1,285
Otago 219 277 371 552 453
Southland 187 213 246 351 297
NZ Total 5,515 6,147 7,486 11,158 9,790

REGION JUNE 96 JUNE 97 JUNE 98 JUNE 99
Northland 180 254 139 190
Auckland 1,676 2,196 1,719 2,154
Waikato/BOP/Gisborne 1,019 1,161 788 939
Hawke’s Bay 189 231 184 239
Manawatu/Wanganui 267 292 233 289
Taranaki 139 153 124 159
Wellington 745 944 709 821
Nelson/Marlborough 184 209 166 216
Canterbury/Westland 1,031 992 685 824
Otago 255 248 223 230
Southland 165 168 134 143
NZ Total 5,850 6,848 5,104 6,204

REGION Value of sales JUNE 2003
Northland 57,562,763
Auckland 1,274,218,936
Waikato/BOP/Gisborne 325,231,606
Hawke’s Bay 56,921,793
Manawatu/Wanganui 62,180,567
Taranaki 33,806,552
Wellington 238,845,506
Nelson/Marlborough 81,737,000
Canterbury/Westland 239,413,367
Otago 70,575,320
Southland 53,649,263
NZ Total 2,494,142,672

MEDIAN PRICE BY DISTRICT FOR JUNE 2003

DISTRICT DWELLINGS SECTIONS
Northland 168,000 95,000
Auckland 289,000 145,000
Waikato/BOP/Gisborne 176,000 78,000
Hawke’s Bay 150,000 74,750
Manawatu/Wanganui 107,750 53,500
Taranaki 125,000 73,500
Wellington 220,500 85,000
Nelson/Marlborough 219,000 93,000
Canterbury/Westland 159,500 90,500
Otago 124,000 87,000
Southland 108,000 128,000
Total NZ$ 210,000 92,000
* Dwelling includes houses, units, town houses, apartments, residential investment blocks and home and income.
AUCKLAND BY REGION JUNE 2000 – 2003
MEDIAN
JUNE 00 JUNE 01 JUNE 02 MAY 03 JUNE 03
Nth Shore 277,500 272,500 286,000 331,000 339,000
Waitakere 190,000 204,000 210,544 232,750 239,900
Akl City 272,000 290,000 300,000 371,500 355,000
Manukau 219,250 250,000 256,000 276,000 290,000
Papakura 192,500 187,000 200,500 200,000 200,000
Metro Akl 243,000 261,500 269,500 295,000 300,000
NUMBER SOLD
JUNE 00 JUNE 01 JUNE 02 MAY 03 JUNE 03
Nth Shore 313 436 564 690 733
Waitakere 200 228 346 636 538
Akl City 616 707 863 1,364 1,092
Manukau 466 421 507 739 669
Papakura 63 44 64 93 87
Metro Akl 1,658 1,836 2,344 3,522 3,119

WELLINGTON BY REGION JUNE 2000 – 2003
MEDIAN
JUNE 00 JUNE 01 JUNE 02 MAY 03 JUNE 03
Hutt Valley 160,000 181,000 168,500 220,000 196,000
Northern 255,000 235,250 233,000 270,000 288,750
Western 249,000 273,000 285,000 342,000 386,350
Southern 259,500 230,000 256,250 316,000 331,000
Eastern 267,000 245,000 261,000 317,000 340,500
Central 272,000 259,000 250,000 310,250 283,500
NUMBER SOLD
JUNE 00 JUNE 01 JUNE 02 MAY 03 JUNE 03
Hutt Valley 160 191 196 230 214
Northern 69 68 80 121 94
Western 58 64 67 70 46
Southern 58 70 88 57 37
Eastern 47 55 57 75 44
Central 62 60 67 118 67
CHRISTCHURCH BY REGION JUNE 2000 – 2003
MEDIAN
JUNE 00 JUNE 01 JUNE 02 MAY 03 JUNE 03
City Central 182,500 128,000 160,000 213,375 214,000
N/East
Avndl/Aside/Burwd Park 155,000 145,000 145,000 169,000 175,000
W/Inner
Riccn/Upper Riccn 180,000 130,000 157,500 199,000 167,500
W/Outer
Hrnby/Heih/Sckbn 120,000 118,250 132,500 149,250 153,500
N/W Inner
Meriv/Fendn/Ilam 250,000 265,000 265,000 276,000 315,000
ChCh City Total
All 19 sub-regions 162,250 155,000 152,500 172,500 181,750
NUMBER SOLD
JUNE 00 JUNE 01 JUNE 02 MAY 03 JUNE 03
City Central 16 19 40 30 30
N/East
Avndl/Aside/Burwd Park 36 35 49 78 81
W/Inner
Riccn/Upper Riccn 22 19 30 38 27
W/Outer
Hrnby/Heih/Sckbn 28 22 31 54 43
N/W Inner
Meriv/Fendn/Ilam 65 41 68 91 67
ChCh City Total
All 19 sub-regions 453 499 657 1,035 778

OTAGO BY REGION JUNE 2000 – 2003
MEDIAN
JUNE 00 JUNE 01 JUNE 02 MAY 03 JUNE 03
Dunedin City 96,500 101,000 110,000 125,000 124,000
Central Otago 128,000 169,250 140,250 222,500 212,500
North Otago 54,000 75,500 82,000 85,200 87,000
South Otago 50,000 60,000 62,000 66,500 83,500
East Otago 57,500 70,000 83,500 85,000 60,750
NUMBER SOLD
JUNE 00 JUNE 01 JUNE 02 MAY 03 JUNE 03
Dunedin City 156 149 221 332 311
Central Otago 26 58 72 84 56
North Otago 21 44 49 77 57
South Otago 9 19 17 34 17
East Otago 7 7 12 25 12

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