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Drop the quarter-acre dream to address supply shortage

There’s been no change to the shortage of houses for sale nationwide and that’s keeping asking prices high in markets around New Zealand, the latest Realestate.co.nz data shows.

Monday, March 2nd 2020, 10:17AM 1 Comment

by The Landlord

The real estate website’s February data had 22.3% less houses available for sale last month, as compared to February 2019.

In Auckland, there were 22.5% fewer homes available as compared to the same time last year and this decrease was mirrored in other regions.

Marlborough reached an all-time low since records began 13 years ago with 35.9% fewer homes available when compared to February 2019.

In Taranaki and Wairarapa, total stock was down by 42.6% and 36.3% respectively - the biggest year on year decreases seen in any region during February.

At the same time, the national average asking price rose by 4.0% year-on-year to $702,510 in February.

Asking prices were also up to all-time highs in five regions. They were Northland, Hawke’s Bay, Canterbury, Wairarapa and Manawatu/Whanganui.

Realestate.co.nz spokesperson Vanessa Taylor says that healthy asking prices nationwide, along with the all-time highs in five regions, are likely being driven by the serious shortage of housing stock

This might be good news for sellers, but it presents real challenges for a growing country like New Zealand, she says.

“High-quality, high-density housing is a global solution that could have great success here, but we first need to change the psyche of Kiwis – many of whom are hanging on to the quarter-acre dream.

“People want affordability and homes that support their lifestyles. I think we will see a shift in the sorts of homes being built and in how developers start to present the ‘back garden’ that Kiwis love so much.”

Changing our housing ideals might also help us to increase the efficiency of our housing model, she says.

“We have a lot of builders that build three or four homes per year. If we start to look at how the building market can better supply modern New Zealanders, I think we will find new opportunities to scale up.”

However, in the meantime, there is hope for buyers in some parts of New Zealand, Taylor adds.

While new listings were flat nationally, 12 of the 19 regions saw an increase in new listings coming onto the market in February, as compared to February 2019.

“So although there is still a very real shortage of homes for sale around the country, it is encouraging to see pockets of New Zealand getting active in 2020.”

The most significant increases were seen in Gisborne, the West Coast and the Hawke’s Bay who saw increases of 22.9%, 22.5% and 15.2% respectively, as compared to February 2019.

 

Tags: average price house prices housing market housing shortage listings price growth property investment property values real estate Realestate.co.nz supply

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Comments from our readers

On 2 March 2020 at 11:35 am Janice111 said:
My husband and I, my sister and her husband and my parents all own our own 'quarter acre pavlova paradise' with our respective houses having been built in the late 1950's and mid-60's and the land hasn't been subdivided. We've all lived 20 plus years in our houses and will remain there till it's no longer practical, health and cost-wise. Our houses are solid and are a 'slice of Kiwiana' and feel very lucky to have been in such a position. It's sad now that the ordinary NZ'er can't have that and they have to be subject to the only affordable option of high density housing. There are so many people living in NZ now and it's the only way round it economically and practically. Life is so fast paced now with most parents both working. Thanks for your article.

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ANZ 4.44 3.15 3.25 3.85
ANZ Special - 2.65 2.75 3.35
ASB Bank 4.45 3.19 3.19 3.49
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China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
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HSBC Premier 4.49 2.60 2.65 2.80
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HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 ▼3.19 ▼3.49
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The Co-operative Bank - Owner Occ 4.40 2.79 2.79 3.39
The Co-operative Bank - Standard 4.40 3.29 3.29 3.89
TSB Bank 5.34 3.59 3.49 3.79
TSB Special 4.54 ▼2.65 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.65 2.69 2.79
Median 4.55 3.22 3.22 3.44

Last updated: 3 July 2020 8:15am

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