Cost of a new home

The latest QV costbuilder data shows the cost of building in Auckland has risen 2.4 per cent over the past year. Photo / Getty

It's been another big year in the housing market and despite the recent slowdown, it's a year in which the QV House Price Index average value for the Auckland region topped $1 million.

And the latest qv.co.nz E-Valuer quarterly report shows the super city has 99 suburbs with a median of more than $1 million and just three suburbs with a median under $500,000.

This all means it's never been harder to buy a home in the city and with a lower deposit required for new builds, many buyers are considering this option. So how much will it cost to build in the Auckland region and what do sections cost?

The latest QV costbuilder data shows the cost of building in Auckland has risen 2.4 per cent over the past year and the average cost of building a standard 140-sq m, three bedroom, one bathroom home in the super city region is now $279,250. On a square metre basis the data shows costs range from the lower end of $1650 per sq m for a modest, one-storey home to the higher end of $4525 per sq m for an executive two-storey home.

This doesn't include any demolition of existing structures on the site, additional costs because of building code changes, above average structural requirements such as retaining walls, landscaping and driveways, getting water, power and other utilities to the site and professional, council, and legal fees. It also doesn't include the price of the land.

So what can you expect to pay for a section in Auckland?

In the former Auckland City suburbs, there are around 40 sections for sale and one of the most affordable is a 300sq m section in Avondale, with an asking price of $499,000.

On the North Shore there are more than 67 sections for sale, many in home and build developments and one of the more affordable is a 480sq m section in Torbay with an asking price of $499,000.

In Waitakere City, of the 140-plus sections for sale, $260,000 will buy you a 1300sq m sloping section in Laingholm with plans to build a 150sq m pole house, which is estimated to cost around $670,000, including the retaining wall, decks and driveway so that will bring the total land and build option to $930,000. While vacant sections in other suburbs such as Massey, Glen Eden, Titirangi and Hobsonville have asking prices of $420,000 upwards.

In Manukau, out of more than 400 sections for sale, $299,000 will buy you one of the cheapest, a cross-lease 452sq m section in Weymouth. While Mangere Bridge sections are $500,000 plus and Flat Bush sections are priced from $620,000.

So it may not be any more affordable to build a new home, though you don't need such a high deposit and the end product is a brand new building, which should mean lower maintenance costs in the short term.

The good news for buyers is that after a long period of low listings levels and strong competition, it's a bit more of a buyers' market following a surge of listings coming on to the market just prior to Christmas. Add to that sales are down, and so are auction clearance rates. This means market conditions that favour buyers and means they are more likely to have time to get building and valuation reports and to negotiate on price. It also means those selling will need to make sure they have their homes well presented on the market to avoid detracting from the value.