March home sales hit new record highs

156 properties sold for more than $2 million around New Zealand in March. Photo / File

10 per cent of all properties sold in NZ cost more than $1 million, as crisis drives prices.

For the first time in a single month, 10 per cent of all properties sold around the country went for more than $1 million.

New figures out yesterday showed that of the 8803 homes sold in March, 1023 sold for more than $1 million - also the first time in a single month the number of properties in that price bracket exceeded 1000.

That is almost double the number of homes in the range than sold in March last year, according to the Real Estate Institute of New Zealand.

And the demand for properties worth more than $2 million has grown rapidly over the past six months, particularly in Auckland, REINZ chief executive Colleen Milnes said.

"Auckland continues to see demand stronger than the available supply, with new developments across the region barely impacting on demand.

"Listings remain tight across the region, with strong demand for $2 million properties in the north of the region and investor activity in the south."

Ms Milne said 156 properties sold for more than $2 million around New Zealand in March.

The majority, 144 dwellings, were in Auckland, with 71 per cent sold in the central city and 20 per cent on the North Shore.

Remuera had the most $2 million-plus property sales - with 29 homes sold - followed by 19 in Epsom and 10 in Mt Eden.

"And it's obviously with the price rises - within Auckland - that we're seeing that properties are moving and the above $1 million properties make up about 25 per cent of the market volume," Ms Milne said.

"Our sales for March 2015 show the properties over $1 million make up 25 per cent of the volume of sales. The properties less than $550,000 - that used to make up 50 per cent of the market - now make up about 25 per cent as well.

"People are deciding to buy regardless, in some ways, of the crisis. They've realised that this supply problem is going to be with us for a number of years."

The national median price of a home was now $475,000 - a jump of $35,000 on what it was this time last year - and $790,000 in the Auckland region.

A record 2267 properties were sold by auction last month - 604 more than last March.

ASB senior economist Chris Tennent-Brown said the data only confirmed the strength in the housing market was showing no signs of waning.

"If anything, the pressure in the housing market is lifting," he said.

"The Auckland housing market is by far the most stretched region from an affordability perspective."

Four years on and another $795,000

The Auckland suburb of Grey Lynn continues to be a sought-after place to live.

So it's no surprise properties that go up for sale in the area are quickly snapped up, no matter what the cost.

The new owners of this home in Selbourne St paid $2.27 million for it - $795,000 more than its previous owners paid for it four years ago.

The four-bedroom villa - with two bathrooms, a family room and study - has a capital value of $1,810,000, meaning the home also went for $460,000 over its CV.

The Quotable Value website shows that in May 2011 the property sold for $1,475,000.

It is not known if the previous owners made any significant renovations, but photos on the Barfoot & Thompson website, who took care of the sale, show a stunning home with large living areas and open spaces.

A description on the site reveals the house comes with a wine cellar and double garage as well as a walk-in wardrobe in the master bedroom.

It is also close to a number of primary and secondary schools, parks and shops.

The new owner declined to comment.