The average value of homes in Auckland is now $955,793 according to the latest figures from Quotable Value.
That is up 15.4% compared to a year ago and makes it increasingly likely that the average value of homes in the Auckland region could pass the million dollar mark in the next year or so.
If dwelling values in Auckland keep increasing at the same rate in the next 12 months as they have in the last 12 months, then they will pass $1 million later this year.
In the Wellington Region the average value of homes is $504,794, up 10.2% compared to a year earlier, and in Christchurch the average value is $490,137, up 3.3% for the year. (see table below for average values throughout the country).
Investors the driving force
QV national spokesperson Andrea Rush said investors were pushing up prices in many places.
"Residential property values are rising rapidly across Auckland again and they also continue to accelerate in many other parts of the country, with much of the activity driven by strong demand form investors," Rush said.
"Tauranga, Hamilton, Wellington, Dunedin and Queenstown values continue to see particularly strong growth, as do many other regional centres and smaller towns located within commuting distance of these main centres.
"Migration is continuing at the highest levels seen in 100 years and this population growth coupled with growing demand form investors, means housing supply, particularly in Auckland and Queenstown, is not able to keep up with demand and this is driving values ever higher.
"While it is clear Auckland needs more housing, both within the existing urban metropolitan boundary and 'future urban' zoned land, as well as new infrastructure to service it, it appears to be investor demand that's driving the rapid growth in Auckland and other parts of the country," Rush said.
Recent Reserve Bank figures show just how big a portion of residential mortgage lending is going to investors.
Within Auckland, the biggest growth in average dwelling values in the 12 months to May was in its southern districts, where property prices have traditionally been cheaper.
The biggest increase in average values occurred in Central Manukau where it was $643,369 in May, up 22.7% for the year.
The lowest increase in values was in the Gulf Islands, where the average value was $933,331 in May, up 11.8% for the year.
Quotable Value Average Dwelling Value | |||
Territorial authority | Average current value $ | 12 month change% | 3 month change % |
Auckland Region | 955,793 | 15.4% | 3.3% |
Wellington Region | 504,794 | 10.2% | 4.0% |
Main Urban Areas | 688,908 | 12.8% | 3.8% |
Total NZ | 577,829 | 12.4% | 3.9% |
Far North | 345,895 | 14.0% | 4.5% |
Whangarei | 404,676 | 15.6% | 3.3% |
Kaipara | 410,918 | 19.8% | 9.3% |
Auckland - Rodney | 849,107 | 17.6% | 2.9% |
Rodney - Hibiscus Coast | 838,942 | 17.4% | 3.6% |
Rodney - North | 860,503 | 17.8% | 2.1% |
Auckland - North Shore | 1,110,891 | 14.1% | 3.2% |
North Shore - Coastal | 1,268,592 | 14.0% | 3.8% |
North Shore - Onewa | 887,738 | 12.5% | 2.3% |
North Shore - North Harbour | 1,089,841 | 16.7% | 3.1% |
Auckland - Waitakere | 765,019 | 16.5% | 4.6% |
Auckland - City | 1,121,337 | 13.0% | 3.0% |
Auckland City - Central | 982,427 | 14.8% | 3.2% |
Auckland_City - East | 1,400,219 | 12.8% | 3.1% |
Auckland City - South | 1,012,577 | 12.4% | 2.6% |
Auckland City - Islands | 933,331 | 11.8% | 4.9% |
Auckland - Manukau | 824,407 | 19.6% | 4.4% |
Manukau - East | 1,054,687 | 16.5% | 4.1% |
Manukau - Central | 643,369 | 22.7% | 4.8% |
Manukau - North West | 706,122 | 22.4% | 4.5% |
Auckland - Papakura | 611,026 | 20.7% | 1.1% |
Auckland - Franklin | 599,937 | 17.1% | 2.4% |
Thames Coromandel | 570,381 | 9.3% | 2.5% |
Hauraki | 305,046 | 19.0% | 9.5% |
Waikato | 378,903 | 27.0% | 5.8% |
Matamata Piako | 335,784 | 18.2% | 5.8% |
Hamilton | 478,323 | 26.2% | 4.9% |
Hamilton - North East | 605,164 | 25.7% | 5.4% |
Hamilton - Central & North West | 441,772 | 24.8% | 3.5% |
Hamilton - South East | 439,842 | 26.8% | 4.9% |
Hamilton - South West | 423,955 | 27.7% | 5.0% |
Waipa | 428,919 | 20.2% | 6.4% |
Otorohanga | 228,261 | 10.5% | 3.3% |
South Waikato | 152,557 | 18.0% | 4.4% |
Waitomo | 166,200 | 1.7% | 12.1% |
Taupo | 386,366 | 12.0% | 3.8% |
Western BOP | 525,133 | 23.6% | 8.4% |
Tauranga | 591,942 | 23.1% | 4.9% |
Rotorua | 318,295 | 15.0% | 6.1% |
Whakatane | 339,491 | 13.3% | 7.6% |
Kawerau | 128,060 | 23.5% | 11.4% |
Opotiki | 234,043 | 10.9% | 5.8% |
Gisborne | 236,413 | 4.9% | 1.7% |
Wairoa | 153,057 | 2.3% | 5.4% |
Hastings | 339,439 | 10.6% | 4.1% |
Napier | 365,895 | 11.2% | 3.7% |
Central Hawkes Bay | 226,025 | 4.3% | -1.9% |
New Plymouth | 382,929 | 6.7% | 2.5% |
Stratford | 214,122 | 3.9% | 2.1% |
South Taranaki | 188,591 | 2.7% | 0.6% |
Ruapehu | 139,429 | 2.7% | 2.3% |
Whanganui | 193,764 | 6.3% | 1.5% |
Rangitikei | 150,895 | 6.4% | 1.3% |
Manawatu | 260,980 | 8.1% | 1.0% |
Palmerston North | 312,645 | 7.6% | 2.8% |
Tararua | 158,037 | 3.4% | 1.3% |
Horowhenua | 220,201 | 5.7% | 1.6% |
Kapiti Coast | 413,798 | 8.7% | 4.8% |
Porirua | 415,133 | 8.6% | 2.8% |
Upper Hutt | 359,825 | 6.7% | 3.2% |
Hutt | 406,188 | 8.0% | 3.9% |
Wellington | 610,102 | 11.9% | 4.4% |
Wellington - Central & South | 607,737 | 10.0% | 3.7% |
Wellington - East | 672,759 | 13.9% | 5.5% |
Wellington - North | 539,390 | 13.3% | 4.6% |
Wellington - West | 709,540 | 12.8% | 5.1% |
Masterton | 245,352 | 0.8% | -0.1% |
Carterton | 277,406 | 4.4% | -1.3% |
South Wairarapa | 325,739 | 6.5% | 1.8% |
Tasman | 450,447 | 7.0% | 3.6% |
Nelson | 454,565 | 10.2% | 3.4% |
Marlborough | 377,597 | 6.7% | 0.8% |
Kaikoura | 389,532 | 9.3% | 4.0% |
Buller | 206,557 | -1.0% | 14.1% |
Grey | 215,049 | -0.3% | 8.9% |
Westland | 221,247 | -2.1% | -5.3% |
Hurunui | 357,999 | 2.7% | -0.2% |
Waimakariri | 424,529 | 2.1% | 0.4% |
Christchurch | 490,137 | 3.3% | 1.1% |
Christchurch - East | 371,639 | 4.6% | 0.7% |
Christchurch - Hills | 664,228 | 2.4% | 2.0% |
Christchurch - Central & North | 578,113 | 4.0% | 1.6% |
Christchurch - Southwest | 463,270 | 2.2% | 0.5% |
Christchurch - Banks Peninsula | 503,885 | 4.0% | 0.8% |
Selwyn | 532,936 | 2.4% | 0.9% |
Ashburton | 351,758 | 7.1% | 4.5% |
Timaru | 324,930 | 8.0% | 3.6% |
MacKenzie | 350,217 | 14.0% | 3.5% |
Waimate | 226,235 | 8.3% | 8.0% |
Waitaki | 236,417 | 3.9% | 0.6% |
Central Otago | 374,408 | 14.7% | 6.2% |
Queenstown Lakes | 875,002 | 22.0% | 9.0% |
Dunedin | 323,735 | 10.3% | 4.1% |
Dunedin - Central & North | 336,617 | 11.3% | 3.8% |
Dunedin - Peninsular & Coastal | 289,982 | 5.7% | 3.3% |
Dunedin - South | 309,837 | 10.9% | 4.8% |
Dunedin - Taieri | 336,419 | 10.1% | 4.4% |
Clutha | 177,180 | 5.2% | 2.1% |
Southland | 221,690 | 5.3% | 2.7% |
Gore | 191,897 | 5.6% | 2.8% |
Invercargill | 218,426 | 4.8% | 1.1% |
No chart with that title exists.
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112 Comments
Quick we need more supply will be JK's cry.
its time to curb demand and it should be the government taking the lead to to slow it down.
get rid of neg gearing or allow others to claim the interest portion back on their tax to level the playing field for FHB. Also stop foreign ownership of our houses and make all houses subject to CGT except if its your one house of residence
scrap the accommodation allowance and use that 1.2 BIl to build more houses to be sold at cost to born and bred kiwis.
scrap the dividend from housing NZ for the next ten years and instruct them to build build build.
Probably not much different from the debt dilemma US corporations find themselves enduring on behalf of grasping shareholders.
Then, as we showed to months ago using another stunning chart from SocGen's Andy Lapthorne, what has gone largely unnoticed in the recent past, is that the differential between the growth rate of net debt and underlying cash flow or EBITDA, now at a staggering 35%, have never been greater, and in fact "Debt Is Growing Faster Than Cash Flow By The Most On Record." As Andy Lapthorne politely put it in the chart below, there is "crazy growth in net debt." Read more
What is the percentage of property that is negatively geared?
i wish we knew what the cost was to the government but they will never release that info as it would be a massive sore toe.
Australia released theres and it was around the 6.8 billion mark and is now and election issue
http://www.news.com.au/finance/real-estate/murray-inquiry-negative-gear…
Former Commonwealth Bank boss David Murray’s sweeping review of Australia’s financial system identified, in addition to its 44 recommendations, 13 taxes needing to be addressed.
It singled out negative gearing as one of a number of tax arrangements that “distort the allocation of funding and risk in the economy” and may “adversely affect outcomes in the financial system”.
“The tax treatment of investor housing, in particular, tends to encourage leveraged and speculative investment,” the report says.
in other words, the current tax arrangements are fuelling Australia’s obsession with property, and overheating the market.
While I'm hearing what you are saying there are however other issues which need to be taken into consideration or else there is no balance...I personally couldn't give a toss about negative gearing....everyone has to live and invest somewhere in the system.....and none of those investors make up the rules of the system they are just like all the rest of the people they have to use it as it is enforced up on them.
Last time Australia tried to do something about negative gearing it created chaos....memories must be short............it is easy to blame negative gearing but how about people identifying the cause not a symptom..........all taxes distort and will always distort yet the simple minded keep addressing symptoms rather than the cause. The simple minded keep coming up with so-called solutions which is nothing more than pushing some agenda onto the uneducated populace....and once some of these dangerous people come up with some figures but never the figures that give a true and accurate whole picture so to speak then there are problems and agendas other than the real issue being resolved.
If you don't want distortions in a taxation system then don't implement a taxation system that causes distortions!! Stop the blame games....Stop the band-aids......Stop the unessential spending.......Start thinking about the reasons we tax......taxation was never intended to be used as a market manipulation tool it was meant to be used for people who fell through the cracks and not the wide usage that we have in today's society....... the cracks widened to include all politicians, bureaucrats and everyone it seems wants them to keep spending more and more.....it is called the gravy train for a reason not a season.
If we have to tax then at least make sure those taxes never ever contribute to financial insecurity or distortions for the people!!!.......at a minimum we owe it to ourselves and society those seemingly small but fundamentally essential 2 ingredients..........it is for these reasons that I have supported the concept of an APT tax and the removal of all other taxes, levies, fees, etc.......equality across the board, no individual, entity, etc is treated differently.....distortions removed!! Now that wouldn't be hard would it.....
There is no logic in desiring to maintain the current system.....it is like sitting on a horse with a slack reign allowing the horse to take you on the ride......then complaining the horse took you to somewhere you didn't wish to go........so you then shorten one reign so the horse now moves around in a circle........the journey goes on but you never reach the goal. I find it rather ironic that a former bank boss is finger pointing.....some will be distracted by the direction no doubt......but it is hardly helpful in the short, medium or long term!!!
couldn't agree more sharetrader...this is one helluva mess...more people will be homeless, debt trapped or slaved for much of their working lives, maxed out disposable incomes by high rents, young talent will just leave NZ...social and economic disaster on the cards here
sharetrader, I reckon it's time to recognise you are wrong about housing and, instead, get stuck in yourself and start buying properties. You'll have some fun.
Owning several houses will make you far more happy than moaning about houses. Remember, owning is more fun than moaning.
https://i.imgur.com/mALGfLN.jpg
Sums it up
Hi BadRobot, I keep "saying this" because I keep doing this ie investing in property.
I'm not tryin' to be an a-hole. Few posters on interest.co.nz are as consistent in their message (and
consistently happy!) as Your Landlord. And I don't post very often... if I was tryin' to be an a-hole or
antagonistic, I would post a lot more than I do.
I believe in the merits of long-term, conservatively financed, investment in property. I do recognise
however, no matter how I phrase my thoughts on property, there will be plenty of interest.co.nz commentators
who want rubbish me. So be it...
It's true though... and I've be doing it for long enough... life's good in landlord land. I can't see any stories on interest.co.nz that tell me otherwise, and certainly my bank managers are very happy.
About my rhyme though? Thanks to you, now I know it... guess I'm not much of a poet!
Your bank managers will always be happy - they are not your friend, so long as you keep paying them they will be happy - it's when you don't pay them that they quickly become unhappy.
All I'm saying is not everyone believes you and that is the thing I think you don't understand.
BadRobot - It just boils down to the fact that "professional real estate investors" are, in actuality, unsophisticated mugs who are incapable of understanding anything but property.
Go to a 2 hour seminar, invariably held by some former declared bankrupt, promising you a life of untold riches and voila you're a professional investor.
With that in mind it becomes so much easier to understand people like "Your Landlord" - he's too much of a simpleton to work out the risk-return matrix of all asset classes so only chooses something he can touch and see, despite the fact that cash yields are currently beyond terrible.
Is it any surprise then that he chooses to spruik the only asset class he is capable of understanding?
I own my own house, but I also have a diversified portfolio of other assets because I understand the pitfalls of being over-exposed to a highly leveraged class and the irrational exuberance that exists when every-man-and-his-dog are rushing in.
I think for many it is too late to join the party. Hence the sour grapes feel around here.
Personally, I am neutral on the issue. I can understand that people use the situation to their benefit, but I also empathize with those who feel it is unfair and immoral.
In any way, more than anything else life is good in landlord land because market mechanisms have been destroyed by money printers worldwide. Mispricing risk, as even Chaston puts it. Had market capitalism prevailed post 2007, you would probably be sleeping under a bridge now. Btw, isnt it funny that people here seek salvation in more government regulation, when it was government regulation (through irrational central bank policy) that created the mess in the first place?
Sour grapes? Too late to join the party? I own a property in London. There is no way I would buy a property in Auckland at such inflated prices. You think about what Auckland really has to offer compared to London, or even Sydney, for example, to justify these prices. Do you honestly believe they are sustainable? The market is being largely fuelled by greed driven speculators. I am very worried about what will happen to the NZ economy when prices start correcting. And correcting is a euphemism for what I really think is going to happen. I feel very sorry for fhbs who are being pressured to "join the party".
Not great news for those born in the latter X years and the Y years. It is all about timing and having the ability to borrow against existing assets. Great times for the boomers and early X's. They are having a ball but at whose expense. Their children and grandchildren many of whom have not left school yet.
anyone under 20 that does not have parents help or a very high paying job are literally screwed over.
i know many 30+ that are moving to parts of aussie (not sydney) where you can still buy on a average income.
i guess that is the answer if you want to own and you are young either get a very well paying job, inherit, or leave
Skip Aussie, move to the US. Live in a vibrant city like Portland Oregon (ave house price 335K US). Apply for a fixed rate mortgage that lasts up to 30 years at the original fixed rate (payment security) and you can easily refinance if that rates drop. Oh, and the house will have central heating, insulation, more than 200sqm, lots of storage and a back yard. You'll be able to find a home thru the a Multiple Listing System so you can work with an agent you like rather than whomever the seller choses and your agent will act as a buyers broker (agent) that the seller pays for. You can go on Zillow and find out all the details of recent sales without paying money to sham businesses like QV. And, ta da, the house will have an asking price rather than "take a guess" price of tenders.
Good advice! Portland, Oregon looks like a very nice place. A little bit of the old USA that still exists. If you can make it to Portland do so.
I remember reading about an Auckland based kiwi student a couple of years ago who said that he couldn't buy a house in Auckland so he went and bought a cheap house in Hamilton, instead of complaining about how the prices are unaffordable for his generation. Well, I am sure that after the huge capital gains in Hamilton he is probably rather happy with the choice he made. Just saying.
Well local investors are pushing the regional property prices up, but it's Overseas Investors that are massively inflating the Auckland housing market. Lets hope that once the AML (Anti Money Laundering) measures get introduced the inflated house prices insanity will stop!
So when and if these Anti Corruption measure get properly introduced, the chances are the Auckland property market will significantly slow to a halt and then decline. We already had a taster of this in October last year with the new IRD regulations which temporarily stopped Overseas Investors in their tracks.
If we don't introduce this soon we're going to be in the same boat as Vancouver, where their economy is already suffering due to lack of skilled quality migrants, who are now leaving since the cost of living in Vancouver is far too expensive.
BBC article: Vancouver's Housing Crisis
http://www.bbc.co.uk/programmes/p03w45ny
it is already happening in queenstown which is becoming like aspen, owned by the rich who mostly use for holidays and the workers live in towns a little way away and are bused in daily.
will we see auckland heading the same way with many not being able to afford to live here and having to come from further out, might work if we had fast rail or eight lane motorways.
it wont be long before the stories become a flood, we cant get teachers, policemen, nurses etc
http://www.stuff.co.nz/business/80292197/call-for-national-response-to-…
@ Surfisup; Yeah really, wait till the Anti Corruption measures come in to force mid next year. Then I think you'll see a decline in Auckland's house prices.
https://www.tvnz.co.nz/one-news/business/one-client-purchased-100m-wort…
Auckland property is different as it is managed by some very skillful investors who don't make foolish decisions. No sub prime here with these masters of the universe, no follow the pack with these stars regardless of their track record with stocks in '87, pine plantations, dairy farms, Ansett, ostrich farming, finance companies, leaky homes, did I mention dairy farms, Virgin (you would think Air NZ would have learnt by now) etc
This lemmings over the cliff behaviour is well documented on multiple occasions within a relatively short history in NZ. Not surprising to hear we're the most ignorant developed country in the world when you see this sort of carry-on.
What something is valued at and the price people are prepared to pay are two very different issues and frequently confused even by people who should know better.
Journalists need to be asking the IRD how much annual income tax is generated from housing investors in NZ? This should be broken down into speculators, developers and landlords.
At 4.5% fixed for 4 years it's obvious this was going to happen in secondary cities with 7% yields.
Effectively arbitrage trading.
Prices will be upped until yields back to 5% by which time frantic fhb's will read the headlines and all pile in with their kiwisaver to blow prices even higher long after the wise old investors have left the market due to poor yields
You're confusing old NZ with the new. In 5 years all of our best and brightest will have moved on. We're fast tracking not only our economy, but also our population to being the Mexico of the South Pacific. Can already see it happening in the tech sector in Auckland.
MASSIVE skills shortage is what. Of 21,746 jobs currently on seek 2135 (10%) of them are in IT. Given that it's cracked the top 5 export earners by GDP in just 5 years that's a pretty big deal. Also consider that the product can be shipped around the world in a nano-second at $0 cost.
There is a true conflict of interest in the valuation market. Why would a valuer ever value a property as lower? They are paid by the person wanting to leverage against it, to buy their next property.
Yes we can say that they are kept in check by an authority and standards, but so are real-estate agents. We have all heard stories about them in the news.
This is what Labour and the Greens are up against. Who's going to vote for negative equity? Cause that is what they must sell if no natural crash comes forth before the election. To just prop this absurdity up with the promise of more social benefits like the Accomodation allowance and no massive social housing effort that has immediate effect on the market.....will not win them a thing
Unfortunately interest rates are no longer reflecting the underlying risk - low interest rates imply a low risk - I think that relationship is now broken. The only reason for low interest rates is because the whole world is in such an economic mess that the low interest rates are being used to keep the ship afloat rather than signalling risk. I think the only way out of this mess is a massive interest rate increase to bring back the normal relationship. The current economic conditions require a different unorthodox approach - something new and different. Only problem is the world will have to suffer another great depression. There will be a tipping point - past which there will be nothing that the governments of the world can do to "correct" the current inbalance.
I wish I felt the same way, but if i had sold my house rather than renting it out, someone would still be living in it. Unless you're building new houses, I wouldn't say you're contributing to the housing supply in any way.You can make much the same argument for buying shares in the open market, but we do at least get regular opportunities to give money to companies directly in capital raisings, IPOs etc.
Hey Your Landlord if you had some tenants moving on from a house that was starting to need a bit of work but could be sold for a good price would you renovate a bit and continue renting it out or renovate and sell now? Something I am pondering currently. I think doublegz would say hold.
Hi there Zachary.
I am a buy and forever hold investor. I have found, with all properties I own, that they become more profitable the longer I keep them. And it's all less risky too of course. So no, I don't tidy up and sell... I tidy up and rent again, always at a better yield too. There's no place I would rather have my money. Despite the views of many posters on interest.co.nz, now is a good time to buy if you invest for the long term. I have just bought another property recently... couldn't be happier with it! Keep your property... you will be glad you did so, many years from now.
PS: Hope you keep commentating here Zachary... I enjoy reading your contributions (when I get the chance) and particularly enjoy the tumult you sometimes cause amongst the 'doom, gloom and despondency' brigade. So many on interest.co.nz don't seem to realise that property investing can be done in a safe, long-term way, and not everyone is a 'speculator', financially stretched and taking huge risks. Regards.
I have given up responding to Zach's comments. He or she is so ridiculous I can only assume he or she is in fact one of the staff at Interest.co.nz putting on comments to drum up reactions and interest on this site. No one surely has the time or energy to spend so much time on this site as Zach or whoever he or she is.
I have enough houses and commercial property YL. When you are retired you want to be free from any distractions. I would rather go for a bike ride than think about tenants and the mess they left behind when they left a rental. My share portfolio comes in pretty handy these days. Dividends come in every six months tax paid and all I have to do is spend them. Luckily I had the income to buy them and I did not listen to the gloom and doomers who think shares are shite. In saying this I have to say I was lucky about timing. When I started buying them they were $1 each. Us boomers have been lucky with our timing.
Lucky because I started investing when I started working. That's what I tell the young ones today. Start saving as soon as you start working. Try to avoid the overseas travel and expensive lifestyle. I am lucky in that I am a boomer, assets were cheap and I had the income to buy. I defy anyone in their twenties today to be able to build up 1% of a NZ public company like I have. Assets are just too expensive including houses to do that. Shares I built up from a starting point of $1 each would now be worth the equivalent of $15 or more if you included dividends with imputation credits, special dividends and share buy backs. I was working, had the income as a professional and the shares were there to be bought. Timing is everything.
Thanks for the feedback Gordy, I was wondering why we weren't locking horns lately. I'm not an interest.co.nz staffer and believe I even had a comment deleted the other day. It was getting upvotes and a rather epic one too but I will have to take that as a warning from the management I guess. I'd say most of the writers on this site are in the 'social justice warrior' camp.
Sorry I do not buy it. The way you talk you sound more like a passionless machine than a person. If you had any humanity in you your comments would not be so uncaring about those who were born in more recent times and who have not had the benefit of cheap assets to buy. You have to be a staffer as you put so many comments on this site. If you had a life you would not have the time to do it. You must be a machine surely.
I would be more sympathetic if the younger generations showed a great inclination to appreciate their identity. The crux of my philosophy is that NZ and all the major British Commonwealth countries have been bequeathed a priceless heritage. This heritage has now been largely offerred to the whole world so I have put my thinking cap on to predict what would happen in such a scenario. My conclusion is that real estate in the premium cities of these countries will go through the roof as a vast number of the world's middle-class people make their way over.
Thanks for the response Your Landlord. Yes, now I think about it more my experience has been the same and I have only ever regretting selling rather than hanging on. Decision made. I'll keep commenting try and keep these guys on their toes although it is hard work at times!
some disturbing graphs in this article - and all avoidable if there had been some leadership at the national level - http://www.stuff.co.nz/business/money/80358491/new-zealand-house-price-…
Queenstown is a different beast from auckland, most owners are absent (most were from singapore)and when something big happens like the GFC they all sold and fled so crashed the market down there.
it has recovered now.
also most of the staff are on work permits due to the low wages paid and seasonal work. it is quite strange getting served by non kiwis in your own country , i shudder to think what the real tourists think.
It just amazes me that when housing is under so much pressure with population growth, immigration and restrictions of supply they are effectively actively encouraging existing home owners to buy more houses. People focus on immigration being a bad thing yet many immigrants are highly skilled people filling in gaps here. I was talking to a European scientist who was recruited to work here due to a desperate shortage of his profession. They sold up in Europe, brought kids over but cannot afford to buy house here and their dreams are evaporating. They are so anxious about retirement. So they are going home. Kiwi born young families are starting to do the same and look overseas. Yet rich old investors keep buying the stock and will buy the new stock. It makes me so angry.
Here's a press release from Labour's housing spokesman Phil Twyford;
Government gives up as average Auckland house nears $1 million
With the average Auckland house price approaching $1 million it is clear the Government has given up on fixing the housing crisis, says Labour’s Housing spokesperson Phil Twyford.
“The Government has run up the white flag. It has admitted defeat. None of its housing policies have had any lasting impact and the latest QV numbers show the market is running hot again.
“Whatever the Government is doing, it is not working.
“First home buyers are shut out, speculators are running riot, mortgage slaves are handing all their hard-earned to the Aussie banks and we’ve got families living in cars and campgrounds.
“Having allowed the housing crisis to spiral out of control over eight years in government, the only thing National has left is to blame the Auckland Council for the housing crisis.
“Stung by public disappointment with its Budget, the Government has been in full-scale blame mode, picking a fight with Auckland Council to distract from its own failings.
“Tomorrow the Government releases its draft National Policy Statement (NPS), which it promised eight years ago in its 2008 election manifesto.
“If the NPS is going to have any positive impact, it must be accompanied by new approaches to finance the $17 billion of new infrastructure Auckland needs. It must also abolish the urban growth boundary, and replace it with a smarter way of managing the city’s expansion.
“If the NPS only calls for the incremental injection of new land into supply that will simply feed the speculative market,” Phil Twyford says.
Trump is the Black Swan that is going to roil up the international markets, including these housing booms.
Wait till 2017/2018. Remember these finance banking crises happen every 10 years, born out of the US and shake up the globe. March 2017 is the time to get out of risky, speculative and high return investments..Till then, enjoy the ride...
BofA calling for a 15% sell off in summer. Could be sooner than you think. https://www.youtube.com/watch?v=cIxD15IugAA
Yee hii !! ....git along lil' doggies ! ...thar is only one waay for ackland propurtee ....an' that is up, up, up !!
C'mon everyboodee ..mortgage ya' selves to da hilt ...git on board the negative geering "gravee train" ...use other tax paya's munny wif ya accommodashun supplement ...who cares ! ... ya ain't payin' fur it and ya can't lose !! Yee Hii !!
Gonna be a fun time for us folks on da sidelines, when it all comesa crashin' down aroun' ya ears !
Specially when lil' Janet over dere far yonder raises dem in'trest rates ....yee haa !!!
Crazy. Have voted Nat in the past but they have serious head in the sand on this issue. If Labour launches compulsory capital gain on rental property policy they will sail into Govt in 2017. Add in backdating for 10 years on all the flipping and quick no tax gains in the last 10 years they will likely pay for their other crazy policy without a tax increase.
Combine with a dose of grey rinse Asian phobia (no more overseas buyer) from Winston the Govt could be very very different at the end of 2017.
Cost of building has to be looked at. It seems to be so expensive to build a new home here. Interestingly, look at this chart from stuff ( half way down ) It shows construction is now the highest paid industry in New Zealand. When did this happen?
http://www.stuff.co.nz/business/80154760/seek-data-reveals-countrys-hig…
A massive shortage of skilled, experienced and capable people in the construction industry is the issue. The projects keep on coming but the people don't magic themselves out of thin air.
There's plenty of cheap money and commercial projects happening, not so much on the residential side from my limited perspective. The money being introduced into the economy is from bank generated debts so the construction industry often gets the first bite of the new money.
Perhaps if we focus on bringing up a generation of practical problem solvers with a heavy emphasis on western work ethic and its social benefits we could get some productivity happening. I noted that there are productivity issues in the construction industry, some are from regulation but a lot of problems are coming from people having too many projects. Productivity drops when people can't have a single-minded focus on their work.
Nothing gonna happen even Trump comes in power. Governments are governed by politicians but they are ruled by business people. Great Depression will not come again for another 80 to 100 years. Enjoy the ride. Don't buy lotto, just buy house and you will be millionaire.
I wish we had comments thread like this from historical booms. Would be absolute gold to compare against the likes of those in 87 who were taking loans to buy shares because they were such a sure bet. All these immortal words are going to be a goldmine for future boom and busts.
It astonishes me that the Government refuses to gather statistics on who is fueling the property bubble - and at the same time claims it is the Auckland Council's "failure" to provide more land. It is obviously NOT a land supply issue - but rather a demand issue. The demand is dominantly from "investors" and "speculators" (foreign and domestic) who have the resources to out-bid NZ'ers simply looking for a home - and artificially inflate the property market. A complete abdication of responsibility for this crisis by the National Government !!
Jeepers! we can't even save at close to the rate that the required deposit on an (Auckland) house is increasing! Admittedly these are average values, but still...
What is probably most concerning (from my point of view) is that the 3 month increases don't seem too far displaced from the 12 month increases i.e. things haven't really lost momentum.
Demographics all round - shrink the number of bodies per house and need more houses. Down to about 2.4 in NZ now. Even if Auckand had no immigration would still need more houses/infra.
To "combat" it just keep the social engineers and crony capitalists influemce out of it. Stamp duties and cgt taxes have made precious little difference in other restricted markets around the planet. Less that 2% of NZ land is urbanised so there is no shortage of land excuse.
When the minister in the government is warning First time buyer instead of sending firm warning to so called investors (Speculators), less said the better about the government. Only one thing that this government has to go but unfortunately still has more than a year left and by that time will totally achieve their target in forcing many Aucklanders to leave Auckland and move to other places. Auckland will be new Migrants under this government who are just out to please their friends in places higher up and overseas to secure their future after being booted out next year.
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