Auckland property further out of reach for homebuyers

Reporter·NZ Herald·

16 Sep, 2015 11:49 PM3 mins to read

Auckland asking prices have spiked more than 20 per cent in the past 12 months. Photo / NZ Herald

Property prices in Auckland continue to get further out of reach for homebuyers after the region experienced the country's highest spike of more than 20 per cent in the past 12 months.

Meanwhile, the rest of New Zealand experienced an overall drop in the average asking price in the three months to August of 1.9 per cent, now at $406,750.

Trade Me property figures also show that Aucklanders will have to fork out at least $500,000 for the cheapest property option - apartment or unit - after a huge increase in demand for those housing options.

Head of Trade Me Property Nigel Jeffries said across all property types, the average asking price in Auckland rose by 1.9 per cent in August, reversing its 2.2 per cent fall seen in July.

The average asking price in Auckland is $770,900, just short of the peak of $773,350 reported in June 2015.

Mr Jeffries said that while the average asking price in Auckland had increased by 20 per cent, small houses - one to two bedroom - had increased 24 per cent while apartments were up a "staggering" 49 per cent in a year.

"It's a massive amount of money for an apartment but that's the grim reality of the demand from buyers in the Auckland market now," he said.

In the regions, most reported rises of less than 10 per cent over the past year, with the exception of Hawke's Bay, 18.9 per cent, and the West Coast, 14.2 per cent.

Waikato experienced a 6.1 per cent increase, Canterbury 5 per cent, Nelson/Tasman 4.4 per cent and a 3.2 per cent rise in Marlborough.

As in July, four regions showed a year-on-year decline in average asking price in August. The largest fall was seen in Gisborne of -17.7 per cent.

With the exception of July, Otago has experienced decreasing average asking prices for the last six months.

"Taranaki now appears to have run out of steam after some extremely strong growth in the last year including monthly increases as high as 24 per cent."

Wellington continues its modest average asking price growth in August, up an anaemic 0.5 per cent year-on-year. Growth in average asking prices has now been sluggish in the capital for six months.