About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, December 12th, 11:30PM
rss
Latest Headlines

Values soar but options remain

The value of New Zealand’s residential property market has soared to almost $1 trillion dollars yet there are still suburbs in each of the main centres that offer more reasonable pricing.

Wednesday, March 21st 2018, 9:00AM 1 Comment

by The Landlord

Grafton, Auckland

New data from the Property Institute and property market data company Valocity shows that, taken as a whole, New Zealand housing is now worth $941,611 billion.

This is as compared to $667,718 in 2015, which points to a significant jump (of 41.07%) in values nationwide between 2015 and 2018.

While residential housing values are up in all the main centres, the growth in values has been uneven.

Tauranga saw the biggest growth in values (up by 63.27% to $34 billion) while Christchurch saw the most moderate growth (up 11.6% to $60 billion).

Apart from Hamilton, in each of the main centres value growth in 2017 was the same as, or greater than it was in 2016.

Property Institute chief executive Ashley Church says this was the biggest surprise in the report as there’s been a general consensus that the market has been flattening.

“This data suggests that it’s more a case of growth moving away from Auckland to other parts of the country.

“That’s not entirely unexpected as house price booms in regional centres usually start later than Auckland and continue for a while after a boom in Auckland has ended.

“But the extent of the strength of those prices, particularly in Tauranga and Wellington, is still surprising”.

Thanks to this value growth, many people who own property are now wealthier than they were three years ago, but Church says the new data isn’t all good news.

Not only is it even harder to get into the market than it was three years ago, but the economy has now become even more sensitive to interest rate increases, he says.

“To the extent that this increase in prices is mortgage funded we’re now that much more susceptible to a major hit on the economy if interest rates were to increase too much over the next few years”.

However, despite the steep rise in values in markets across the country, the data also shows that each of the main centres has the odd, more reasonably priced suburb.

The most reasonably priced suburbs in each of the main centres are:

• In Auckland, it’s Grafton which has a median value of $382,000.
• In Wellington, it’s Timberlea with a median value of $369,000.
• In Christchurch, it’s Aranui with a median value of $281,000.
• In Tauranga, it’s Gate Pa with a median value of $445,000.
• In Hamilton, it’s Nawton with a median value of $417,000.
• In Dunedin, it’s Purakaunui with a median value of $214,000.

Read more:

Brighter price outlook – Colliers 

Go regional for gains 

« Free Investment Property Showcase Events: Auckland, Wellington and ChristchurchDrop off in migration flows »

Special Offers

Comments from our readers

On 22 March 2018 at 10:03 am Chris Slater said:
Some confusing figures here, thanks to the ‘long’ trillion (a million cubed - 10^18 or ‘exa’ - used in Europe) and a ‘short’ trillion ( a million squared - 10^12 or ‘tera’ – used in the United States and now normally used in finance).

If we take the figure of housing worth $941,611 billion, ($941,611,000,000,000) this will translate to $941 trillion, so your first sentence should read “The value of New Zealand’s residential property market has soared to almost $1 quadrillion dollars.” A short quadrillion is 10^15. Wikipedia’s entry on ‘Orders of magnitude’ should help.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • ASB appoints Vanguard as manager
    “What I find amusing from those industry participants who favour passive investing over active is their continued ignorance...”
    7 hours ago by Pragmatic
  • Law doesn't have to be broken for FMA to take action
    “Agree with Brent Sheather - NZ regulators suffer from what is formally termed 'regulatory capture'. A form of government...”
    13 hours ago by Chatterbox
  • ASB appoints Vanguard as manager
    “Pragmatic just going back 20 years to speak to you, I suspect the ASB’s value proposition is well diversified low cost...”
    13 hours ago by John Milner
  • CLU back on agenda for Massey
    “I'm delighted Massey has elected to do this. The initial efforts of Denis Sampson and others bringing it here from the US...”
    15 hours ago by Referee
  • Old approach won't always stack up
    “Thanks Steve for a thoughtful and moderate comment. I know Brian and the fact was that the client was happy. For the...”
    16 hours ago by MediCare
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.79 4.55 4.79 4.99
ANZ Special - 4.05 4.29 4.49
ASB Bank 5.80 4.44 4.69 4.89
ASB Bank Special - 3.95 4.29 4.49
BNZ - Mortgage One 6.50 - - -
BNZ - Rapid Repay 5.95 - - -
BNZ - Special - 4.10 4.29 4.49
BNZ - Std, FlyBuys 5.90 4.69 4.79 4.99
BNZ - TotalMoney 5.90 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.15 5.20 5.25 -
Lender Flt 1yr 2yr 3yr
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.70 4.85 -
Housing NZ Corp 5.80 4.69 4.79 4.79
HSBC Premier 5.89 3.99 4.19 4.69
HSBC Premier LVR > 80% - 3.79 - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.80 4.59 4.69 5.09
Kiwibank 5.80 4.55 4.69 4.99
Kiwibank - Capped - - - -
Kiwibank - Offset 5.80 - - -
Kiwibank Special - 4.05 4.29 4.49
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 5.10 5.45 -
Resimac 5.30 4.86 4.94 5.30
RESIMAC Special - - - -
SBS Bank 5.89 4.85 5.05 4.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 4.19 3.95 4.49
Sovereign 5.90 4.45 4.69 4.89
Sovereign Special - 3.95 4.29 4.49
The Co-operative Bank - Owner Occ 5.75 4.10 4.35 4.49
The Co-operative Bank - Standard 5.75 4.60 4.85 4.99
TSB Bank 5.80 4.45 4.69 4.99
TSB Special - 3.95 4.19 4.49
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.95 4.69 4.79 5.19
Westpac - Offset 5.95 - - -
Westpac Special - 4.15 4.29 4.59
Median 5.89 4.50 4.69 4.79

Last updated: 2 December 2018 8:39pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com