There are now 235,000 homes in New Zealand worth $1 million or more, according to property valuation website myvalocity.co.nz.
In its report for October myvalocity said the current property boom had seen the number of homes that are worth $1 million or more quadruple over the last three years, from 59,000 in October 2013 to 235,000 last month.
In Auckland, the country's most expensive region, the number of million dollar homes had increased from 45,868 in 2013 to 186,933.
Myvalocity estimates that 41% of all homes in Auckland are now worth $1 million or more.
After Auckland, the areas with the highest number of million dollar-plus homes were Wellington with 7837 (12% of all homes), Christchurch 5828 (4%), Queenstown 5178 (35%), Tauranga 4641 (10%), Coromandel 2228 (11%), Whangarei 1598 (5%) and Hamilton 1157 (2%).
In all other parts of the country million dollar-plus homes accounted for 5% or less of all properties and in most places it was 2% or less.
Myvalocity chief executive Carmen Vicelich said while there had been clear signs over recent months that the market was pulling back, the heat generated in recent years had taken valuations across the country to a new level.
"Whilst we are still seeing some growth in most parts of the country, it appears things are starting to level off," she said.
"The fact that there is still a lot of activity in the $1 million-plus price bracket is one of the reasons we are yet to see a significant decrease in Auckland's median sales price.
"We expect the next few months, which is traditionally a peak sales period, to further clarify where the market is headed," she said.
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6 Comments
Very questionable as to whether even 20% of homes in Auckland are "worth" over $1M as the income that is behind the "values"is very low: rental yields are at 3.7% and house price to income ratios are about 10 (where as >5 is considered high).
There is no "worth" there, only prices pumped up by what the RBNZ has called "easy credit".
The continuation of "easy credit" to sustain current prices is unlikely.
That and property prices are cooling in Auckland judging by the recent low percentage of auction sales. Lots more properties passing in. I'm guessing this is largely down to China restricting capital for overseas investment on foreign property, having been recently been bitten in the bum by Canada's foreign investor tax. And then there's the Trump affect that could restrict even more trade.
That's enough to put off most banks resulting in restricting credit.
I will say this only once....."anyone and everyone" can put a "paper" value on any residential property, but it's only worth something when you sell it and someone transfers that money into your bank account !!
Sold out of the Auckland market March this year and have no regrets....when you are only getting 2.7% gross return on your capital, why would you keep it !?! .....MORE capital gains I hear you all scream...good luck with that .... :)
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