Auckland’s housing crisis is seeing buyers move south, sending house prices and sales volumes sky-high in the Waikato and Bay of Plenty.
Real Estate Institute of New Zealand (REINZ) figures just released show sales volumes in Hamilton doubled in September, compared to September 2014, rising to 463.
Sales volumes across Waikato and the Bay of Plenty increased by a whopping 85% over this time to 1,619.
Meanwhile the median price across the region rose by 17% over the year, to $390,000.
Most notably, the median selling price in Mt Maunganui/Papamoa jumped 30% to $582,000; Taupo, 27% to $395,000; Tauranga, 26% to $472,500; and Hamilton 13% to $425,000.
In Mt Maunganui/Papamoa and Taupo, much of these increases occurred between August and September, with the median price surging 18% in this time.
Prices in Tauranga and Hamilton had already been trending up, as they only increased 1% and 2% over the month.
Rotorua and the Eastern Bay of Plenty experienced decent gains of 7% and 6% respectively between August and September, despite median prices in these areas dropping by similar amounts from September last year.
The number of days to sell in the Waikato/BoP was 33 days in September, which was 19 days less than in September 2014. Put in context, over the past 10 years the average number of days to sell during September for the region has been 47 days.
REINZ regional director Philip Searle says the influence of Auckland buyers is being keenly felt in Waikato and the Bay of Plenty.
“Both the numbers of first home buyers and investors are increasing. Although the number of listings has increased across the region, the volume of sales has meant that available listings remain very tight,” he says.
The median house price in the Auckland region rose a whopping 25% in September compared to September 2014, to $771,000.
The median selling price across the country was $484,650 in September, up 4.2% compared to August, and 15.4% compared to September last year.
Commenting on the Waikato and Bay of Plenty specifically, REINZ says, “The trend in median price is now steady, although the trend in sales volume is now rising. The days to sell trend is improving, with the overall trend for the region continue to improve.”
Median price - REINZ
Select chart tabs
14 Comments
Tauranga has only just recently eclipsed its 2007 peak. There is still plenty of wind in the sails as we have Auckland investors coming down in their droves, Aucklanders moving to live in Tauranga, the increased drift from Waikato to be closer to the beach (now that their properties are worth more) and a local economy that is thriving. Tauranga property prices are still cheap as chips when compared to Auckland prices. This will continue for a little while yet me thinks.
and what about jobs?
don't confuse Auckland's "investors" buying in Tauranga with Aucklanders moving to Tauranga.
And yes, when comparing to Auckland prices, Tauranga's are cheap. But if we compare to local economy and local salaries then Tauranga's houses are severly unaffordable (6-7 times annual household income).
I live in Tauranga but I'm afraid I don't see the economy thriving. I have seen more real estate agents and some of them have now fancy cars though..
At this compounded rate, we true Kiwis shall all be a multi-trillionaires by the time the penny drops, or immigration dies off.
Cos,This land banking lark sure is easy. Retirement, all taken care of.
Never have to pay it back, never have to worry where the next dollar is coming from. again.
Prime real estate mate.
Kiwisaver...Pssttt...Why bother.
Let others stow away their money and the bosses and the missus's until 65 or more.
Just keep refinancing, every so often, even get an ipod or a few grand as an incentive.
Double up in no time at all. No need for a job, no need for a hand-up.
Working is a mugs game.
Wot milking...up at 4am you say, get a life.!. Rather live in Auwkland.
Saving is stupid, until the cows come home. Invest mate, cheap as chips.
Should have bought a coupla dozen houses. Sell them to them boyos from overseas mate. Youuz noze, dem with the deep pockets, been all over the news.
Something about flagging interest in their homeland...I heard. So herding their way over here.
So to cut a long story short, farms ain't worth loosing sleep over Fontera being yer loss leader.. leader.
And themother meat markets, SFF ..so friggin flippin a poor do..
Go for Broke, Houses mate. Money ain't worth having, just ask a bank.
Invest wisely in Waikato or Tauranga.
Auckland's tiny plots are so old hat. So last week.
Remember you heard it all here first. Small deposits, leverage up, easy as falling off a log.
Barking up the wrong tree can get you nowt for years to come.
What have you got to lose?.
Pretty Please.
Disclaimer. I have a median, medium interest, so take what I say with a pinch of salt, or a lot of luck.
Put it all on the red, Being in the black is so old hat.
Just ask any old timer.....still working it out, or working it off.
Would you credit it all..or would you believe it all..?
By the way..
All Blacks, no debt, World Leaders in bringing home the bacon. Not a farmer among em. Good old kiwis..every one.
Dem Poms, got nuffin on us. (Anuvver disclaimer, I used to be one).
Let us pray. our Cup never runneth over. We need the bleedin tourists, next time.
carefull using 'median' with small data sets (taupo, rotorua), can be extremely volatile depending on what properties happened to be sold that month. But as all seem to be consistently up (even PN up 19% yoy!), it does point to price rises happening as opposed to just selling more of the higher value homes in these regions.
Auckland's rising house prices started in the inner suburbs, extended to the outer suburbs, and now are moving into the provinces.
I travel a lot around the North Island. For many months now, house prices in the provinces have looked cheap to me.
The provincial markets are ready to boom.
Glad u agree with me now. Hasnt hit palmy yet based on my local sales report with prices still around gv or slightly above. 3 bed stand a lone houses on full section rentable at 320 a week for under 250k. An obvious miss-price with even the poorest FHB with kiwisaver able to buy up to 350k. Next biggest city behind ham/tga with 85k and counting (800 migrants, or 1% pop, gained last year, plus normal internal gain from surrounding small farm towns). Uni booming. Hospital biggest between welly and ham and expanding massively. New bridge from south side of city over to massey and new inland port on south side of city (making awapuni my suburb for growth). Full your boots.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.