It appears first home buyers are not being put off by steep prices in the country’s largest city. Westpac’s Shane Howell says first home buyers find Auckland prices challenging but low interest rates have given them confidence in the market.
Areas most popular with Auckland first home buyers this year
Auckland first-home buyers are active in six suburbs where places can be bought for an average $641,000 to $708,000, new figures out today reveal.
Mangere was the most popular suburb this year, with 39 per cent of all sales going to first home buyers at an average $641,000, up 13 per cent on last year, according to CoreLogic data.
The 60 places sold there were mostly standalone three-bedroom houses built in the 1960s and 1970s selling from mainly $392,000 to $847,000, according to CoreLogic senior researcher Nick Goodall.
Birkdale followed with 73 sales to first home buyers making up 38 per cent all sales for an average $708,000. First home buyer numbers rose 6 per cent on last year.
Glen Eden followed with 136 houses, or 37 per cent, bought by first home buyers, paying from $395,000 to $1.05m. Most of the houses were three-bedroom standalones built between the 1950s and 1980s and sold at an average $696,000.
In Ranui, first home buyers bought 83 places, making up 37 per cent of the market, up 8 per cent on last year, paying an average $643,000.
In Hobsonville, first home buyers bought 73 places, up 15 per cent this year, paying $400,000 to $949,000 and purchasing mostly two-bedroom places.
In Avondale, 92 places went to first home buyers, up 6 per cent on last year, paying an average of just under $738,000.
Shane Howell, Westpac's chief product officer, said first home buyers found Auckland prices challenging but low interest rates and a belief that values would not fall significantly seemed to give them confidence.
It's certainly not easy for first home buyers in Auckland but they know interest rates have been historically low and have set about getting themselves on the ladder.
"It's certainly not easy for first home buyers in Auckland but they know interest rates have been historically low and have set about getting themselves on the ladder," he said. "We're seeing deposits coming from the traditional ways of saving and family support."
Barfoot & Thompson figures out on Monday indicated the Auckland property market appeared to be turning after seven years of constant price rises. The average sales price last month of $933,130 fell 1.1 per cent on October and the median price at $850,000 was down 1.7 per cent on October.
A new Mangere housing scheme, Market Cove, is selling off-the-plan residences starting from $425,000. But a project boss said in October that unlike some schemes which were cancelled, people who paid deposits for properties to be built on Walmsley Rd at Favona on the Manukau Harbour would get their places.
Guy Taylor, general manager of the planned Market Cove, said building work was due to start next year.
