Auckland Property Market – Sales Down, Prices Up

Media Release

7 March 2006

Auckland Property Market – Sales Down But Prices Up

The Auckland property market produced mixed results according to the latest figures from Auckland real estate Barfoot & Thompson. The number of sales was down on previous years, however, prices recovered and a flurry of new listings came onto the market.

Director Peter Thompson says, “We had more than 1,800 new listings during February which was up significantly on January and compares well with the average monthly listings figure of 1,634 for 2005. It seems there are plenty of vendors who have confidence in the market and recognise that we have now reached a settled state that is likely to continue into the foreseeable future.

Prices also recovered from their January dip to reach an average of $464,092 which is eight percent ahead of a year ago.

“We saw more movement in the upper end of the market in February. The percentage of our sales that occurred in the over $500,000 price bracket increased to 44 percent which compares well with last year. Almost 12 percent of sales were for more than $1 million. The upper end of the market tends to go flat over the December- January period as people take holidays and then recovers in February and this year has been no different.”

The total volume of sales for February was comparatively low. At 740, the volume was 30 percent down on the same time last year.

In the Property Management division, 613 houses and units were let during February which was down 8.5 percent on a year ago; however, the average weekly rent increased another $2 per week to reach a record $350.

Mr Thompson says, “The overall picture for the Auckland property market is a relatively settled one. I believe the market has reached a state of equilibrium and the conditions we see now are likely to remain for some time.”

ENDS

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