In Auckland the price of homes sold at Harcourts' recent auctions ranged from $456,000 for a house at Manurewa to $2.29 million for a house at Sunnyhills in the eastern suburbs.
The Manurewa house was the only one to sell for less than $600,000 but there were plenty that sold for more than $1 million.
In Taupo, $357,000 would have bought you a modern home on Acacia Bay Rd (pictured), in Christchurch prices ranged from $205,000 to $1.13 million, and in Invercargill you could have picked up a former pub for $165,000.
See below for the full results from Harcourts' recent auctions:
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22 Comments
Meanwhile for NZD 1 million may I present the following ....... http://www.zillow.com/homedetails/18342-Elkwood-St-Reseda-CA-91335/7133… .......New Lynn v Reseda ...no contest ! :)
My point is that it may appear to be good value but in reality it may not be. A bit like cheap shoes, they turn out to be more expensive than quality ones. Those houses could be really bad investments.
Also I would genuinely be interested in the story of an ordinary Kiwi going over there and building a better life for themselves.
I agree, an investment in this property would be a big mistake. I'm definitely going to spend my money more wisely, probably on a lovely 1980s-built monolithic cladding house in New Lynn. Top quality right there, and as we know, Auckland property is different and will never reduce in price. It's because of the solid housing stock we have here - it may look bad, but my motto is there isn't a problem a little Exit Mold won't fix!
hannah wire ...So true !! why people want to invest in Auckland residential property is beyond me ??? ....sold in Auckland in March just gone....what a relief, too much capital tied up, was only receiving 2.8% gross return.......truly marvellous !!
The Auckland property market is just a "cash cow" for the banks, RE agents, advertisers, accountants, lawyers and all their "hangers on" .......all based on the "greater fool" theory that some clown is going to come along and pay "X" amount in "Y" length of time ......
Also a question for Machiavelli ......would "you" pay those sale prices for those 2 New Lynn properties you mentioned ???
Crazy Horse - if I was in the market to spend $1m in Auckland, it would be my top pick! New Lynn is going through a big change and sub-divisible sites there are a good long term investment. I'm not currently looking to buy though and definitely wouldn't buy mono clad if I was! I've been out of buying mode for some time now. Every market has a peak and I'm not buying at or near the top of it!
Machiavelli.....some thoughts ....you have just answered my question, as you yourself wouldn't buy at these prices in New Lynn and you also said the market, in your opinion, is near or at its peak ....so you are relying on the "greater fool" theory, that another clown will come along and pay those prices ...hence this Auckland residential property market is now in "ponzi" territory and has been for a while.
I love property, don't get me wrong ....it creates steady cash flow, but in this Auckland market where I was getting 2.8% gross return with my Auckland property vs. my current gross return of 15.8% and 12.5% in the USA (so much of a better build and way cheaper quality materials ) I am just so glad to be out of the Auckland property "ponzi" rat race.
By the way, good luck with those rent rises ......you may get them, but there will only be more people crammed in, creating social issues and much more "wear and tear" ...used to be a property manager, so well aware of all the "porkies" tenants would tell ....landlords too by the way.
There is still plenty of sub $500k properties available, mortgages are very affordable and it is the best time to buy! The investors are gone from the market, the auctions are quiet, no overseas buyers at all....
The market is definitely slowing down thanks to prompt actions of the government and RBNZ!
NZ homes are generally poorly made and cheap looking... you cant compare them to American homes. Cold homes poorly insulated with no central heating.
The new builds (although better insulated) look fairly cheap also and are not much better than those built in the 60s/70s.
What do you expect from a small nation especially when you have a few large monopolies supplying the materials at prices 30% higher than Australia and the cost of land going through the roof with a clueless government running the show ?
Good news Zac is you don't need to go to Siberia.... 70% of Auckland's land is Rural
It may be rural but it ain't free and is largely protected from exploitation due to it being in a choice location. The whole emphasis of that plan is to keep Auckland beautiful, vibrant and productive thus retaining its value on many levels.
What I have been saying all along is that we really want Auckland to be too expensive for most people BECAUSE it is a global market now.
The only way to keep NZ beautiful is jealously guard the borders and restrict population inflow. If that is not possible then economic measures are the next best thing. Too expensive in the main centres and not so economically viable in the small towns. It is actually a good thing and will save our identity.
Young Kiwis can head south of the Bombays and reinvigorate the smaller towns. Build a new Auckland. Then the migrants will follow ....not sure why other people can't do this themselves but that's another discussion.
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