Queenstown property prices trump Auckland's

Queenstown and Wanaka have eclipsed Auckland as the least affordable parts of the country in which to buy property.

AMP's home affordability survey, carried out by Massey University's real estate unit, showed it would take a person nine years' full income to buy a house in the Central Otago lakes region.

That means every cent the person earned, with nothing set aside for food, rent, clothes, bills or other living expenses.

Aucklanders would need to save the equivalent of 8 1/2 years' income to afford a place in their city.

David Chote, general manager of distribution at AMP Financial Services, said assumptions about Auckland being the most expensive place to live had been shattered.

But he noted that the high prices paid in the lakes region were for just 321 sales, compared with 8689 sales in Auckland.

Graham Crews, Massey's senior lecturer in real estate, said it was still open to speculation whether affordability problems would continue to dog house-buyers, with some analysts suggesting the market had reached the top of its cycle in some regions.

But survey results showed it was becoming increasingly difficult to buy homes throughout the country.

The affordability index fell 5.5 per cent in the September quarter. This was the sixth time the index has been down, reflecting rising house prices and tougher interest rates.

The index also takes account of weekly earnings.