Slowdown predictions 'overstated' - New Zealand house prices rocket

Photo / Doug Sherring

Auckland house price sales have rocketed away again, prompting Real Estate Institute chief executive Colleen Milne to say predictions of a market slowdown were overstated.

Auckland sales volumes rose an astonishing 67 per cent from February to March, REINZ announced. The Auckland regional median price rose from $750,000 in February to $820,000 in March, North Shore medians rocketed ahead from $940,000 to $1 million and Auckland City's median shot from $825,000 to $962,000.

Prices rose elsewhere too.

Otago, Northland, Manawatu/Wanganui, Wellington and Waikato/Bay of Plenty all showed in excess of 25 per cent annual sales growth, REINZ said.

The national median house price rose $20,000 or up 4.2 per cent to $495,000 annually.

"Recent fears of the Auckland market cooling have been overstated, as median prices across the city have rebounded during March," Milne said. "The slowdown in sales volumes after the introduction of tax and LVR changes last year appears to be coming to an end with a significant lift in sales for March and a further uplift in the median price."

REINZ this morning released its March sales data which showed that compared to March last year, prices were up 14 per cent across Auckland, or $100,000. Shore prices were up 16 per cent annually and Waitakere rose 14 per cent.

The number of days to sell dropped from 36 in February to just 30 last month.

Milne said March demonstrated a noticeable surge in sales of higher priced properties, with the number of sales over $1 million increasing by over 90 per cent compared to February.

"This is especially true in Auckland, where one in three properties that sell are valued at more than $1 million - a record 35 per cent of the market," Milne said.

See the latest nationwide property sales data here: