Hobsonville Point where some discounting has been seen. Photo / Dean Purcell
Hobsonville Point where some discounting has been seen. Photo / Dean Purcell
In a city which for years has failed to meet demand for new sections and housing, some Auckland properties in the city's south and north-west are being sold at discounted prices because of the high volumes of new supply, an expert says.
James Steele, Quotable Value registered valuer and senior consultant, said he had seen changes recently at Flat Bush where discounts of around $100,000 were being applied to some houses and sections.
"We have noticed a discount in Flat Bush for some time now. There is a lot of land under development in that part of town and supply appears to have caught up with demand for some developers who are unable to carry the excess stock.
"This has resulted in some land which was previously fetching $700,000-plus in the peak being sold for low-mid $600,000s.
"With improved property, we are also seeing a significant discount being applied to finished houses which were previously $1.5m and are now $1.4m or lower in some cases," Steele said.
"Hobsonville is slightly different. We noticed that there were some price reductions earlier this year where there were completed two-bedroom townhouses asking in the high $600,000s where previously these were in the low $700,000s.
"These appear to have been snapped up rather quickly and at this stage look to have reflected the developer discounting stock which had been hanging around for a bit too long," Steele said.
But while there might be some price reductions at Flat Bush and Hobsonville, Bindi Norwell, chief executive at REINZ says median sale prices in the two area were holding up.
"The median sales price for Flat Bush for the 3 months ending February 2018 was $1,150,000. The price achieved for sales in the area was 2.2 per cent higher than the median valuation for the area ($1,125,000)," Norwell said.
"The median sales price for Hobsonville Point for the 3 months ending February 2018 was $905,000. The price achieved for sales in the area was 4 per cent higher than the median valuation for the area ($870,000).
"Data indicates that the median sales prices obtained for the properties in these areas were above the median sales value.
"Both areas are relatively new developments in Auckland - they have good schools, new amenities and multiple parks, so they are understandably popular areas to live – particularly to families with children.
"As there is still a shortage of properties across Auckland it is great to see areas such as Flat Bush and Hobsonville Point whereby extensive efforts are being made to increase levels of supply."
Overall, Auckland house valuation gains have been at a far more modest pace lately.
The new QV House Price Index shows national values rose 7.3 per cent annually but Auckland values up only 1 per cent annually. A year ago, Auckland values were rising at the rate of 12.3 per cent, QV said.
Flat Bush in east Auckland, where some property is being discounted. Photo/Nick Reed.
"The Auckland market remains stable with any value changes relatively small. North Shore values rose the most, up 2.9 per cent in the year to March and 0.8 per cent over the past three months and the average value there is now $1,235,905," QV said.
"The former Auckland City Council central suburbs rose 1.2 per cent year on year but were down 0.1 per cent over the past three months and the average value there is now $1,244,218.
"Waitakere values were down 0.5 per cent year on year but increased 0.1 per cent over the past three months. Manukau rose 0.3 per cent year on year and 0.8 per cent over the past three months. Papakura values increased 1.9 per cent year on year and 0.9 per cent over the past three months and the average value there is now $703,258; Franklin values also rose 1.2 per cent year on year and Rodney values were also up 1 per cent year on year," QV said.
Wellington values rose 21.2 per cent to March 2017 but in the year to March 2018, they were only up 8.2 per cent, QV said.
Hamilton values rose 2.2 per cent in the last three months but 4.3 per cent in the March year. Tauranga values rose 4.5 per cent annually and 1.9 per cent in the last quarter. Christchurch values dropped 0.6 per cent annually but rose 0.1 per cent in the last three months. Dunedin values rose 9.4 per cent in the year to March and 1.8 per cent in the last three months.
In November the Reserve Bank noted house price growth moderation.
"National house price growth slowed to 2.6 percent in the year to October 2017 from 14.5 percent a year earlier, and sales volumes have declined by 17 percent over the year," it said.
Auckland real estate agents have noticed fewer apartments selling in the city and big discounts as well.
Andrew Murray, a real estate agent of Apartment Specialists, said a 26sq m one-bedroom Railway Campus unit on Te Taou Cres in the Quay Park area near Britomart sold in January for only $30,000, a 13sq m studio unit in Unilodge on Anzac Ave sold for only $60,000 last month while a one-bedroom unit in Q City on City Rd went for only $76,000.
The Railway Campus where discounted apartments have sold. Photo / Greg Bowker
City Sales sold a one-bedroom inner-city unit with its own car park in the Scotia building on Scotia Pl off Queen St for only $125,000 and others went for only slightly more.
A three-bedroom apartment with no car park in Columbia at 15 Whitaker Pl went for only $200,000, a two-bedroom one-car park place in The Docks at 208 Dockside Lane for only $221,000, a studio unit on the waterfront Sebel at 85 Customs St for just $230,000, a one-bedroom one-car park place in Unilodge at 138 Anzac Ave went for only $236,000 and a one-bedroom C-Vu apartment at 36 Day St with no car park went for $251,000, City Sales said.
