|
Residential property prices defy critics THE New Zealand residential property market 'defied the critics' in September with the national median price edging to a new record of $351,500, according to the Real Estate Institute of New Zealand Inc. (REINZ).But sales slipped even further, despite the expectation of a 'kick' from the traditionally more buoyant Spring selling period, to drop to the lowest September sales figure since 2001. Sales were down from 6,394 in August, to 5,894 in September, the lowest since the 2001 sales of 5,550 and almost half the September 2003 sales of 10,686. REINZ National President Mr Murray Cleland said today the slide in sales had probably helped support prices, if anything, "prices are a function of demand and it is clear that with so few transactions in September that there are still at least as many buyers as sellers, which is helping to support prices." Mr Cleland said that escalating building costs and the fall in building consent numbers also helped underwrite the residential property market. "People are constantly making comparisons between the cost of buying land and building a new home and existing properties and I think we have reached that cross-over point now where that comparison might start to favour existing properties. "It's the old story, land subdivision costs and timeframes imposed by local authorities plus building consent costs for new construction have risen at such a pace that the price of existing houses is now not looking at all excessive". "That's a key factor supporting the housing market at present, plus interest costs, although they have risen steeply in the last year or so, seem to be plateauing and homeowners are shouldering the increased mortgage burden". On a year by year percentage growth basis the market was also showing a degree of stubbornness. "Most commentators have been predicting a slowdown in annual housing price growth, and while that is the long term trend, the fact is that it is still sitting at 12.3 per cent, a little lower than August on 12.9 per cent but up on July which was 10.4 per cent." Nationally, in the 12 real estate regions, 7 regions experience increased median prices while five experienced falls. Northland was up from $317,500 to $320,000 but Auckland region was down from $450,000 in August to $441,500 this month. Within the region Auckland City actually increased its median from $474,000 to $480,000 but Metropolitan Auckland was down from $450,000 to $445,000 largely as a result of the North Shore median price slipping from $550,000 in August to $520,000 this month. Waikato/Bay of Plenty was another region to experience an easing of median prices down from $325,000 in August to $322,750, although Hamilton's median was up from $355,500 in August to $365,000. But Mount Maunganui and Papamoa experienced a rare fall from $440,000 to $405,000 and Tauranga was down from $371,500 to $358,000. Hawkes Bay was strong with a median up from $275,000 to $285,000 and Manawatu and Wanganui was also up strongly from $215,000 to $240,000. Taranaki followed suit with a rise from $257,500 to $265,000. Wellington eased slightly after strong prices in recent months, down from $381,050 to $380,000 and Nelson/Marlborough was down from $334,000 to $330,250. Canterbury/Westland fared better with the median up from $310,000 to $315,000 and Central Otago Lakes was again buoyant up from $474,500 to $477,500. Otago took a breather after recent strong months, down from $238,000 to $236,000, while Southland again proved that it is experiencing its own exclusive property boom with a leap in the median price from $176,000 to $195,000. As a result Southland again leads the national statistics for annual percentage growth, with a figure of 39.28 per cent, compared with 17.72 per cent to August, with Wellington second on 15.50 per cent and Manawatu/Wanganui and Northland level pegging in third on 14.28 per cent. Mr Cleland noted that other surveys were based on legal settlements rather than actual sales while the REINZ August figures were for unconditional contracts as at 5pm on September 30 and therefore more likely to provide an up to date indication of the current market. |
About Us | Our Publications | Shopping | Visa Enquiries | Information Days | Links | Advertising | Privacy Policy
© 2005 Consyl Publishing & Publicity Ltd.