Aucklanders viewing properties elsewhere
27th Jun
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A New Zealand Herald report of 25 April revealed New Real Estate Institute data showing Auckland properties sold at auction last year went for a median 18% above capital valuation. Private treaty sales with an advertised listing price sold for 12% over CV.
That’s $43,200 more at auction compared to private treaty sale for a median priced Auckland home. These higher auction prices are helping to push Auckland’s property prices to new heights.
Stuff.co.nz reported earlier in April that the average Auckland house price is even more expensive than in Sydney. The median price in Auckland was $711,000 (AUD 698,000) in March compared to AUD 690,000 for Sydney.
Long-suffering home owner aspirants across the ditch are bring told to turn their frowns upside-down and snigger at their now more hardly done by Kiwi counterparts.
"If you think Australian property prices are insane, try New Zealand," wrote Simon Thomsen in Business Insider. "Cheer up Sydneysiders trying to buy a house, you could be in Auckland, New Zealand, which is undergoing its own property boom."
According to Thomsen, New Zealand is second only to Norway for high house prices compared to incomes.
Which brings us to the simmering concerns over house price inflation in this country. It was February when Reserve Bank governor Graeme Wheeler made his remark that “the more that house prices get out of line with historic relativities, the greater the risk of a sharp correction, leading to financial instability."
With this most recent round of house price statistics, fears over inflation boil-over remain.
[Image: by Merbabu, under GNU Free Documentation License]