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Confidence In High Value Property Underpins Auckland Prices

Confidence In High Value Property Underpins Auckland House Prices

Greater activity in high value properties in well established locations pushed up the average sale price for Auckland homes in November to $553,743.

At the same time house sales volumes at 668 were up 19.1 percent on those for October, but still down on the numbers traditionally sold at this time of the year.

“This is the highest average monthly price for nearly three years and it is attributable to a greater level of high value sales in the inner ring of suburbs around the central business district, and along the eastern coastal suburbs,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“In November we sold 55 homes valued at more than $1 million, and 122 homes valued at more than $750,000.

“More than a quarter of our sales were at the high value end, a far greater percentage than is normal.

“While high value sales have pushed the average price up, what it underlines is the confidence people have in Auckland property in the medium term.

“The volume of sales across the region has started to build, in part through vendors and buyers reaching agreement as to what is market value, and also through the lift which normally occurs as we move through Spring into Summer. However, sales are not as strong as in past years.

“For the past six months the number of homes sold each month has moved from a high of 689 to a low of 561.

“It is unusual for the number of homes sold to move in such a narrow band over such a long period, and while these sales numbers are down on last year, they demonstrate that the market is stable.”

During the month Barfoot & Thompson listed 1639 properties for sale, up 17.4 percent on October, and the highest number since March. At month end its total listings were 6179, up 5.4 percent on the month previously.

Rentals

Property rentals continued their steady increase, with the average weekly rent increasing by $2 to $411. This was achieved across 729 new rentals.

“Each month for the past four months the average weekly rental has increased, and there remains a strong demand for rental accommodation,” said Mr Thompson.

Note to editors

Last month, we reported the average weekly rent at $417, when it should have been $409. This occurred as a result of miscalculations associated with the introduction of the new GST rate. We apologise for this error.

ENDS

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