There are fewer homes being sold for more than $1 million in Auckland, but more in most other parts of the country, according to the Real Estate Institute of NZ.
The REINZ's latest Million Dollar Price Report shows that 4075 residential properties in Auckland were sold for more than $1 million in the first six months of this year, down 1.9% compared to the first half of last year.
There were even bigger declines in the number of multi-million dollar properties sold, with 194 Auckland properties selling selling for more than $3 million in the first half of the year, down 8.5% compared to the first half of last year, while 41 properties sold for more than $5 million, down 18% compared to the same period of last year.
However the number of properties selling for more than $1 million was up in most other parts of the country, with Auckland, Tasman and Southland the only regions to have sold fewer $1 million-plus properties in the first half of this year compared to last year.
Nationally, 5438 residential properties sold for more than $1 million in the first half of this year, up 4.2% compared to the same period of last year.
And if the Auckland figures were excluded, 1363 properties in the rest of the country were sold for more than $1 million, up 27.9% on the same period of last year.
Outside of Auckland, the region with the most million dollar-plus sales was Wellington with 382 $1 million-plus sales, which was up 43.1% on the same period of last year.
That was followed by Otago (which includes Queenstown), where 232 homes were sold for more than $1 million in the first half of the year, up 26.8% on last year, Bay of Plenty, 213 $1 million-plus sales, (+21%), Canterbury 178 (+5.3%), and Waikato 177 (+28.3%).
Outside of Auckland only 29 properties sold for more than $3 million in the first six months of this year (+16%) and just five sold for more than $5 million, which was unchanged from a year ago.
You can receive all of our property articles automatically by subscribing to our free email Property Newsletter. This will deliver all of our property-related articles, including auction results and interest rate updates, directly to your in-box 3-5 times a week. We don't share your details with third parties and you can unsubscribe at any time. To subscribe just click on this link, scroll down to "Property email newsletter" and enter your email address.
57 Comments
Andrewj. I think the Carpenters is the most appropriate music to accompany reading that article.
Time for some more Kenny Rogers.
What a depressing Friday you are making it interest.co.
Fewer $1m properties sold, new properties listings icy, CU splits, Economy in transition (downturn), QV's national average price drop, If Trump ruled Venice, peter's performance reinforced his importance, ANZ trims deposits rates, you delay you pay.
Are you guys hung over?
Or is it that the economy and house prices aren't as bright as they were?
Hope you have a party to go to Saturday night.
Hi Andrew,
I've often wondered why so many here take such delight in the prospect of economic recession and housing market collapse. Your comment sheds some light on this question - you think it will enable you to purchase a house for cheap. This, combined with property envy, explains this somewhat perverse perspective.
Never mind that the banks won't be lending and you'll have more serious matters, such as job security, to worry about.
Let me enlighten you. It has something to do with the fact that for the last 3-4 years we have been force fed by all and sundry that being a specuvestor is the best thing since sliced bread!!!!!!!! If you cannot afford to be one, then rent from one, and help him get even richer!!!!!! On top of this, we were told to give up everything except working and paying rent/taxes!!!!
Do you understand why we are P!$T0FF!!!!
I'd hazard a guess Andrew (like a lot of commentators here) already owns assets. I can't speak for anyone else but at this point I'd be quite happy for this idiotic bubble to deflate because it's going to be significantly messier when it inevitably pops if it continues.
Over the last decade there has been a significant reduction in the value of a dollar when it comes to our major purchase, our home. We are not richer when houses cost more we are poorer because we have to work longer to save and pay our mortgage, lately a lot longer, and higher rents too.
The reduction in the value of our wages has hurt a huge portion of our society, it needs correcting.
This situation should never have been allowed to happen, unearned income, mis allocation of resources, huge debts in non productive assets are going to be very destructive during the corrective stage of the bubble.
If media is with negative news today than tomoorrow will have positive news.
Will be interesting to see if the Labour government actually passes the bill by next week - Which is possible and though the minister had promised in June that the bill will be a law by July - Still if they do it in August will be a thumps up for them OR as many are feeling that government is having cold feet so may try to delay the process.
Wait and Watch.
For someone to be buying a house in the +1m bracket they probably need to be selling their existing homes in the tiers below that. But due to a shortage of bankable FHB's there is a lack of liquidity in the housing market. So many new dwellings under construction in Auckland now. Forget Kiwibuild. I think government policy for 2019 and 2020 will be about creatively financing people into houses that already exist but they can't afford under existing bank lending regimes.
Things must be bad if the mainstream media have now cottoned on! How long will our press try to blinker the public?
https://www.bloomberg.com/news/articles/2018-07-31/are-house-prices-fal…
Could be. Higher end is more of a barometer as few can afford the price and it fluctuated between boom and bust markets more. Could be $4m in a boom and $1.5m in a bust. Most can afford neither.
Suspect the asking prices of $6m plus will have to become something far far less.
The latest June quarter real estate sales figures from Devonport-Belmont-Bayswater show an upswing in the average sales price compared with the June 2017 quarter. IIRC 60 properties sold in the area. Also I had a look at the top 10 sales achieved compared to the 2017 RV, sales were on average 8.4% above RV. NONE of the top 10 were below RV.
Now I am not pushing ideological baggage here unlike so many of the "contributors", I am just reporting on information pushed through my letterbox by a Harcourts agent. I have lived through four property cycles in Auckland, and fully expect another as night follows day.
Sounded interesting until the acknowledgement of “information pushed through my letterbox by a Harcourt's agent” and then you lost me.
Anybahoo – I have floated in and out of Auckland for probably longer than most – and seen all manner of booms, busts and cycles.
The ingredients in this one just feel a little different from previous – the pressures on the upside have been quite formidable over the past few years – some of these pressures being rather opaque and having little relationship with local conditions and market considerations.
However, at the moment many of those pressures are either gradually abating or being removed in total – this must surely have an impact.
I think a correction this time may be somewhat removed from the norm and potentially be far more eventful than what we have known in the past.
Or not….
Oh because introducing a new law that affects international relationships is so easy?
Introducing laws (unless done by dictatorship or executive order) are notoriously long winded and bureaucratic processes. And for good reason. Citizens wouldn't want hasty and ill thought out laws rushed through for political reasons. This does happen obviously, but it's much better for there to be a dotting of i and crossing of t's.
It has passed the committee of whole house..
Next is the third reading.. and then final stretch home.. bye bye..
http://www.chapmantripp.com/publications/overseas-investment-bill-enter…
Apparently Queenstown still needs all the help it can get…..
http://www.scoop.co.nz/stories/PA1808/S00018/national-shows-its-true-co…
Overpriced Houses, with the passing of the bill, now we can get back to 2011 again when houses were cheap, oh no that's right, in 2011 you said they were overpriced. Damn!
"The Bill, ... is expected to begin the committee stages ... this week"
I think "begin the committee" is quite different from "passed the committee" stage wouldn't You say? You could still be waiting until 2019 before the committee is finished so stop holding your breath
If neve gets to buy a house at a multiple of 3.5 or 4 times her salary, which i think is pretty much where Auckland has historically been, she will look back in incredulilty at the time when the country was afflicted by a property bubble and an outbreak of national property hysteria which meant that people would buy a house worth a multiple of 10x their salary. She will think those people must have been off their rockers and count her blessings she was not born 20 years earlier. She will quite rightly think she dodged a bullet.
You need to do a financial literacy course
If bobster you were able to buy atm a2 milk at 25 times earnings instead of the current 51.58 then would you take it, of course. So how can you justify 3.5 or 4 x salary? Auckland houses are priced about right when the rental yield is 3 to 4 percent or so at the moment. The houses are more rock solid and less risk than a2 milk shares which swing wildy in a broad range between 14 dollars and 10 dollars per share. I pity you if you bought at 14 dollars but in ten years they may be valued at 140 dollars who knows. All the stupid answers that you come out with, ha!
The long term average for Auckland yields is around 5 or 6% I think. Current yields of 2%ish in central Auckland are hopelessly inadequate, absent capital gain return on equity is zero or negative. Yields and prices are far from “about right”. The rest of your comments are gibberish, just for a change
And where is it written that the ratio of prices to incomes and yields will hereafter permanently depart from their long term averages? Nominal prices are not the issue, the issue is the relationship of those prices to (say) incomes. If an average buyer tomorrow pays a price ($1,000,000) that is 10x average income ($100,000), and a buyer in 20 years time pays a price ($1,250,000) that is 5x average income at that time ($250,00), who got the better deal? You are constantly misusing nominal and real values, you are dazzled by the former and have no awareness of the latter.
Like I said, it is the first average buyers, even if you assume there was no capital gain over the period. They are a helluva lot better off than ones who chose not to buy and stay renting. The first buyer chose to kick out the landlord, so they built up vast amounts of equity using the money they would have paid in rent. If they had kids, the kids got a family home to grow up in. The non-buyers would have to move any times over the 20 years and if they also had a family then it's quite expensive and time-consuming. It's not all about the money.
Since NZ Lags the world in many instances, I cant help to think that we are at the start of the NZ GFC. We were very fortunate for the Chch Earth quakes keeping us employed while National used the GFC as an excuse not to spend any money and keep the ledger in the black. now Labour has jumped onto the bandwagon and using National as an excuse to fix the lack of expenditure in just about any area possible including exhorbitant wages, money to the Pacific, fixing the housing crises, roading, ETC. The poor-middle class end user is paying for all of this as well as being kept out of houses. I'm not against the improvements but the pace it is being done at- a recipe for disaster!
National showing their true colours-
http://www.scoop.co.nz/stories/PA1808/S00018/national-shows-its-true-co…
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.