tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, June 30th, 12:23PM

News

rss
Latest Headlines

Why work when houses make more money?

Despite Covid, snap lockdowns and border closures, CoreLogic’s quarterly Mapping the Market report shows all major centres had rampant house price increases. Some suburbs increased in value by more than $500,000 in the 12 months to the end of August 2021.

Tuesday, September 28th 2021, 11:43AM 1 Comment

CoreLogic New Zealand’s chief property economist Kelvin Davidson says 771 of New Zealand’s 983 suburbs have had median value increases of $100,000 or more in the past year.

And only 24 suburbs suffered with increases of less than $50,000 during this time.

This growth in values he says, resulted in many owners earning more on paper from simply having a property than going to work every day.

“Needless to say, this is paper wealth effectively coming at the expense of non-owners and unfortunately for would-be first home buyers the latest data refresh highlights yet again the challenges they face,” says Davidson.

In Auckland, only 37 suburbs – from a total of 208 – have a median value less than $1 million and only 10 have a median of less than $800,000.

Across the entire country, only 150 suburbs have a median value less than $500,000 – 61 in the North Island, 89 in the South – which is almost half the number of 12 months ago.

Prestige suburb Herne Bay retained its pole position as Auckland’s – and New Zealand’s – highest priced suburb with a median property value of $3.25 million.

Ponsonby was the country’s top performer with a gain of $597,550 for the year.

In Hamilton, all suburbs achieved a median value increase of at least 14%.

The centre has four $1 million-plus suburbs, with Harrowfield topping the list as its median value hit $1,068,500 at the end of August. Bader is Hamilton’s cheapest suburb at $580,550.

In Tauranga the number of $1 million-plus suburbs has increased from three in June to eight by the end of August, with Mount Maunganui achieving the highest median at $1.33 million.

Seatoun is Wellington’s priciest suburb with a median value of $1.93 million.

There are now 54 $1 million-plus suburbs in Greater Wellington, that figure is up from 42 recorded during the past quarter.

As affordability declines, cheaper suburbs in Christchurch and Dunedin have increased in value. 

Buyers, particularly first home buyers – who have been active this year despite the popular view that almost none have been buying – have entered the market in less centrally-located suburbs.

Dunedin’s first $1 million-plus suburbs are Māori Hill and East Taieri, where median values increased to $1.02 million respectively.

There are only three suburbs in Dunedin with median values below $500,000.

Davidson says the latest refresh of Mapping the Market shows low mortgage rates and tight listings have driven up New Zealand’s property values across the board.

And the dollar gains highlight the affordability challenges for first home buyers and those looking to trade up.

“The market may experience a short-term bounce as alert levels progressively ease but the 2022 outlook is for the pace of property value growth to slow as tighter lending rules bite and mortgage rates rise.”

Mapping the Market highlights

• Of the 983 New Zealand suburbs covered by Mapping the Market, all but eight have seen annual growth in median values of 10% or more.
• Te Anau is the only suburb covered in the refresh to record a growth rate of less than 5%.
• Five suburbs have seen increases of more than 40%.
• Almost 200 suburbs have recorded increases in median values of between 30% and 40% in the past 12 months.
• Almost 75% of all suburbs recorded value increases of 20% or more.

Tags: CoreLogic house prices housing market property values

« Growth in house prices to fall significantly next yearHouse price rises waning amid tighter lending coming »

Special Offers

Comments from our readers

On 7 October 2021 at 4:16 am Kris Letcher said:
The increase in the New Zealand market is amazing. Job / work Income and cashflow is the key to holding onto a big portfolio unless of course there is good cashflow coming from the portfolio. if this is the case, there really is no need to work.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Conduct laws finally real
    “He (Clark) said reviews by the Reserve Bank and the FMA had found banks and insurers lacked focus on good customer outcomes,...”
    1 hour ago by Amused
  • OBITUARY: Controversial adviser dies at 80
    “Condolences to family and friends. Good that a lot of the very positive work Roger undertook has been called out....”
    5 hours ago by jeff m
  • OBITUARY: Controversial adviser dies at 80
    “Roger Moses was a true pioneer in the financial planning world. As the say, you can easily spot your pioneers… they have...”
    18 hours ago by Managing Partner & Dean
  • Pathfinder big winner
    “Well done Peter. I know, as most others do, you are very passionate about ethical investing. This is a well deserved award...”
    1 day ago by John Milner
  • OBITUARY: Controversial adviser dies at 80
    “All the while over at Lombard we had a National and Labour Ministers left free...”
    2 days ago by LNF
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 5.95 4.85 5.35 5.65
ANZ 5.94 5.95 6.40 6.59
ANZ Blueprint to Build - - - -
ANZ Special - 5.35 5.80 5.99
ASB Bank 5.85 5.35 5.80 5.99
Avanti Finance 5.95 - - -
Basecorp Finance 6.95 - - -
Bluestone 5.89 7.49 8.09 8.19
BNZ - Classic - 5.35 5.69 5.99
BNZ - Mortgage One 5.94 - - -
BNZ - Rapid Repay 5.94 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.94 5.95 6.29 6.59
BNZ - TotalMoney 5.94 - - -
CFML Loans 6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Co-operative Bank - First Home Special - 4.75 - -
Co-operative Bank - Owner Occ 5.85 4.85 5.35 5.65
Co-operative Bank - Standard 5.85 5.35 5.85 6.15
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 ▲5.35 ▲5.85 -
Heartland Bank - Online 4.10 ▲4.90 ▲5.29 ▲5.59
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.10 ▲5.35 ▲5.80 -
HSBC Premier 5.89 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.25 4.39 5.09 5.45
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 5.50 ▲6.19 ▲6.69 ▲6.79
Kiwibank - Offset 5.50 - - -
Kiwibank Special 5.00 ▲5.19 ▲5.69 ▲5.89
Liberty 4.84 - - -
Lender Flt 1yr 2yr 3yr
Nelson Building Society 6.45 5.55 6.15 -
Pepper Money 4.49 - - -
Resimac 6.19 5.60 6.16 6.29
SBS Bank 5.79 ▲5.65 ▲6.09 ▲6.19
SBS Bank Special - ▲5.15 ▲5.59 ▲5.69
Select Home Loans 4.09 4.29 4.86 5.09
TSB Bank ▲6.30 ▲5.65 5.79 ▲6.45
TSB Special ▲5.50 ▲4.85 4.99 ▲5.65
Unity 5.65 4.95 5.55 -
Wairarapa Building Society 5.74 4.95 5.75 -
Westpac 5.94 5.95 6.29 6.59
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.94 - - -
Westpac Special - 5.35 5.69 5.99
Median 5.87 5.35 5.77 5.99

Last updated: 30 June 2022 9:19am

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