Manawatu - Whanganui hits the property sweet spot

Source: Unconditional.co.nz
Manawatu-Wanganui hits the property sweet spot, Posted: 31 Oct 2016 09:05 AM PDT While demand in the Auckland property market has slowed The Manawatu-Wanganui region has hit the property sweet spot not only with locals, but with Aucklanders and Wellingtonians who are increasingly searching for property on realestate.co.nz. The search is most popular among those in the 25 – 44 year old age group. Real time statistics from realestate.co.nz for the month ending October, show that demand (as measured by taking the number of listing views of residential properties on the site and comparing it with the average number of views over the previous 12 months*) is up 50.4 per cent in Manawatu-Wanganui. Over the same period, demand for property in Auckland has fallen by 9.6 per cent. "Kiwis across the country aspire to own their own home and while most of the people searching in Manawatu-Wanganui are from the local area, 33.4 per cent more Aucklanders are also looking in the region (when compared with the same time last year) for the perfect match for their budget," says realestate.co.nz CEO Brendon Skipper. Wellingtonians are also keen on the Manawatu-Wanganui region, with a 53 per cent increase in site users viewing properties in this region when compared with the same month last year (October 2015). Most of the attention in the region is on Palmerston North. The city has a long-term reputation as being one of the most affordable centres in New Zealand. The average asking price for a home in Manawatu-Wanganui is $288,267, compared with Auckland which in the same month rose to another all-time high of $943,258. Of the 19 regions across the country, there are only two regions (West Coast and Southland) where the average asking price is lower than Manawatu-Wanganui. "It makes sense that Aucklanders would be looking at other regions and not only exploring investment options, but also weighing up the lifestyle benefits of a move outside of the big city," ays Brendon. In addition to popular West Coast beaches, Manawatu-Wanganui is well located for visiting other regions. Wellington, Wairarapa, Wanganui, Taupo, Hawke's Bay and the Ohakune ski fields are all within a three-hour drive. In the October realestate.co.nz rental yield statistics, Manawatu-Wanganui is ranked the third best place to invest in a rental property. Investors would theoretically receive 5.3 per cent yield over a 12-month period – based on realestate.co.nz's calculation of average asking price vs weekly rental price, excluding all external costs. Another solid reason to look at investing in Manawatu-Wanganui. Auckland, the shine has dulled Auckland was the only region across the country where the total number of residential dwellings for sale (inventory) was up, compared to October 2015. Total stock fell in all other regions across New Zealand. While Auckland was up slightly (1.4 per cent), nationally the total housing stock levels fell dramatically (by 24 per cent) when compared to the same month last year. "Auckland asking prices continue to rise and as such, homes are spending longer on the market. Vendors continue to be focused on selling at a premium while buyers are being more considered and taking time to assess all of their options. With more stock on the market buyers aren't feeling the same pressure they were 12 months ago," says Brendon. If no new listings were to come onto market in Auckland, all the existing properties would be sold in 12.5 weeks, compared to 9.3 weeks in May this year. It's not just global travellers who think Taranaki is a hot spot "Big kudos to Taranaki for being named by the renowned 'Lonely Planet Best in Travel Awards 2017' as the second-best region in the world people should visit next year," says Brendon Skipper. "But it's not just global travellers who have turned their attention to Taranaki," he says. New demand statistics generated by realestate.co.nz show that Aucklanders outnumber locals in terms of searching the region's property offerings. "It's a hot destination and the market reflects its growing status," says Brendon. Taranaki property prices are now at an all-time high at $384,401, which is up 5.2 per cent on the previous month (September 2016). There's also a shortage of listings, down 28.1 per cent compared to October 2015. "It's a classic supply and demand situation," says Brendon.

 

 

National house asking prices fall for the first time since April 2016

Source: Unconditional.co.nz - National house asking prices fall for the first time since April 2016

 

Posted: 01 Aug 2016 02:10 PM PDT - slow-down in Auckland demand – significant variations across the country – The national average asking house price fell in July – the first decline in three months – while demand continued to rise.

 

Real-time market statistics released today by realestate.co.nz show that in July, the seasonally adjusted asking price for homes across the country fell by $7,556 (1.3 per cent) when compared to June 2016. The average national asking price in July was $569,971. On the demand side, there was a 10.39 per cent decrease in viewing sessions for Auckland properties on realestate.co.nz when compared with the same time last year and users also dropped by 4.90 per cent. This continuing trend was first referenced in last month's property report and reinforces the possibility that the shine may have gone off the Auckland market. Nationally, demand increased by 14.48 percent when compared with July 2015. Other regions which saw an increase in viewing sessions were Canterbury and Central Lakes/Otago both at 11.40 per cent, Marlborough with 19.03 per cent and Wellington with a very large 22.52 per cent increase.

 

Auckland still continues its upward trajectory, with the July average asking price at a record high of $898,562 (up 1.1% from the previous month). "There have been calls across the nation for measures to rein in house prices, but it may be that the market is actually self-correcting, albeit slightly, with buyers unwilling or unable to meet ever-increasing price rises. "Whether the fall is the start of a trend is still to be determined," she says.

 

National average asking price:

 

April       May      June     July      

$561,283              $570,971             $577,527             $569,971            

 

"In addition to Auckland, the main centres where asking prices continued to increase were Waikato, Wellington and Otago, but in Canterbury it's a different picture where asking prices fell for the third month in a row in July," Taylor says. The July asking price in Canterbury stood at $462,936, almost $10,000 lower than in May this year ($472,274) but demand is still high. An 8.33 per cent increase in sessions from June and 11.40 per cent increase on July 2015. There have also been some highs and lows in the regions, with Central Lakes/Otago asking prices falling 20.9 per cent compared with the previous month. While this could be a one-off (dropping to $680,672) it's still significantly lower than the same time last year ($756,063 in July 2015), comments Vanessa.

 

At the two ends of the country, asking prices have also fallen.  In July the Northland average asking price stood at $480,006, a 4.7 per cent fall from June (down from $503,527). Southland also recorded a 4.7 per cent fall, with the average asking price in July standing at $250,041, down from $262,285 in June. By contrast, Nelson and Marlborough are on the up, with Marlborough the star performer. Average asking prices in the lifestyle region of Marlborough hit the half-million-dollar mark for the first time ever ($503,997). The figures show that Marlborough had a large increase in demand in July, a month on month increase of 10.94 per cent with a large 19.03% increase on July 2015.

 

Property listings static. The variances across the country are also reflected in the number of new properties coming onto the market, which have remained relatively static nationally compared to the same time last year (down 0.6 per cent from July 2015). For example, regionally we see new listings down by 18.9 per cent in Wairapapa on the same time last year, while at the other extreme Central North Island was up by 35.5 per cent.

 

Rental yield mirror bigger picture - On 27 June, the Reserve Bank released official statistics for the first time showing that in May 2016 some 40 per cent of all mortgage lending was on interest-only payment terms.  This percentage has been "fairly stable" since the data was first available to the Reserve Bank in July 2015. "It reinforces what we said in last month's property report where we stated that many investors appear to be looking for capital gain, rather than focused on rental yield," says Vanessa Taylor.

 

For example, in Auckland where asking prices continue to rise, investors theoretically would receive 3.28 per cent yield over a 12-month period – based on our calculation of average asking price vs weekly rental price, excluding all external costs. Waikato, Auckland and Wellington respectively take up the bottom three spots below the national average, while regional areas dominate the higher returns. West Coast (8.44 per cent), Wairarapa (6.01 percent) and Southland (5.93 per cent) fill the top three spots across the nation.

 

About realestate.co.nz - Realestate.co.nz is dedicated to property and is the official website of the New Zealand real estate industry. As a property listing site, the information it draws on for its property report is in real time. Realestate.co.nz has the country's most comprehensive selection of real estate listings online. The site presents more than 97 per cent of all residential, commercial and rural properties currently marketed by real estate professionals. Focussed exclusively on people in need of property, realestate.co.nz offers superior functionality, including accurate search, school zone data and a mobile app.

 

Glossary of terms - Realestate.co.nz provides valuable property market data not available from other sources.

 

Average asking price gives an indication of current market sentiment. Statistically, asking prices tend to correlate closely with the sales prices recorded in future months when those properties are sold. As it looks at different data, average asking prices may differ from recorded sales data released at the same time.

Inventory is a measure of how long it would take, theoretically, to sell the current stock at current average rates of sale if no new properties were to be listed for sale. It provides a measure of the rate of turnover in the market.

New listings are a record of all the new listings on realestate.co.nz for the relevant calendar month. As we reflect 97 per cent of all properties listed through registered estate agents in New Zealand, this gives a representative view of the market.

Seasonal adjustment is a method we use to better represent the core underlying trend of the property market in New Zealand. This is done using methodology from the New Zealand Institute of Economic Research.

Truncated mean is the method we use to provide statistically relevant asking prices. The top and bottom 10 per cent of listings in each area are removed before the average is calculated, to prevent exceptional listings from providing false impressions. Read more here http://unconditional.co.nz/blog/nz-property-report-a-changed-measure-for-asking-price-introducing-truncated-mean/> .

National house asking prices fall for the first time since April 2016

 

Source: Unconditional.co.nz

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National house asking prices fall for the first time since April 2016 Posted: 01 Aug 2016 02:10 PM PDT § slow-down in Auckland demand – § significant variations across the country –   The national average asking house price fell in July – the first decline in three months – while demand continued to rise. Real-time market statistics released today by realestate.co.nz show that in July, the seasonally adjusted asking price for homes across the country fell by $7,556 (1.3 per cent) when compared to June 2016. The average national asking price in July was $569,971. On the demand side, there was a 10.39 per cent decrease in viewing sessions for Auckland properties on realestate.co.nz when compared with the same time last year and users also dropped by 4.90 per cent. This continuing trend was first referenced in last month's property report and reinforces the possibility that the shine may have gone off the Auckland market. Nationally, demand increased by 14.48 percent when compared with July 2015. Other regions which saw an increase in viewing sessions were Canterbury and Central Lakes/Otago both at 11.40 per cent, Marlborough with 19.03 per cent and Wellington with a very large 22.52 per cent increase. Asking prices vary across the regions 'Significant variations in asking prices across the country paint an interesting picture', says Vanessa. Auckland still continues its upward trajectory, with the July average asking price at a record high of $898,562 (up 1.1% from the previous month). "There have been calls across the nation for measures to rein in house prices, but it may be that the market is actually self-correcting, albeit slightly, with buyers unwilling or unable to meet ever-increasing price rises. "Whether the fall is the start of a trend is still to be determined," she says. National average asking price: April May June July $561,283 $570,971 $577,527 $569,971  "In addition to Auckland, the main centres where asking prices continued to increase were Waikato, Wellington and Otago, but in Canterbury it's a different picture where asking prices fell for the third month in a row in July," Taylor says. The July asking price in Canterbury stood at $462,936, almost $10,000 lower than in May this year ($472,274) but demand is still high. An 8.33 per cent increase in sessions from June and 11.40 per cent increase on July 2015. There have also been some highs and lows in the regions, with Central Lakes/Otago asking prices falling 20.9 per cent compared with the previous month. While this could be a one-off (dropping to $680,672) it's still significantly lower than the same time last year ($756,063 in July 2015), comments Vanessa. At the two ends of the country, asking prices have also fallen.  In July the Northland average asking price stood at $480,006, a 4.7 per cent fall from June (down from $503,527). Southland also recorded a 4.7 per cent fall, with the average asking price in July standing at $250,041, down from $262,285 in June. By contrast, Nelson and Marlborough are on the up, with Marlborough the star performer. Average asking prices in the lifestyle region of Marlborough hit the half-million-dollar mark for the first time ever ($503,997). The figures show that Marlborough had a large increase in demand in July, a month on month increase of 10.94 per cent with a large 19.03% increase on July 2015.   Property listings static - The variances across the country are also reflected in the number of new properties coming onto the market, which have remained relatively static nationally compared to the same time last year (down 0.6 per cent from July 2015). For example, regionally we see new listings down by 18.9 per cent in Wairapapa on the same time last year, while at the other extreme Central North Island was up by 35.5 per cent. Rental yield mirror bigger picture On 27 June, the Reserve Bank released official statistics for the first time showing that in May 2016 some 40 per cent of all mortgage lending was on interest-only payment terms.  This percentage has been "fairly stable" since the data was first available to the Reserve Bank in July 2015. "It reinforces what we said in last month's property report where we stated that many investors appear to be looking for capital gain, rather than focused on rental yield," says Vanessa Taylor. For example, in Auckland where asking prices continue to rise, investors theoretically would receive 3.28 per cent yield over a 12-month period – based on our calculation of average asking price vs weekly rental price, excluding all external costs. Waikato, Auckland and Wellington respectively take up the bottom three spots below the national average, while regional areas dominate the higher returns. West Coast (8.44 per cent), Wairarapa (6.01 percent) and Southland (5.93 per cent) fill the top three spots across the nation. About realestate.co.nz - Realestate.co.nz is dedicated to property and is the official website of the New Zealand real estate industry. As a property listing site, the information it draws on for its property report is in real time. Realestate.co.nz has the country's most comprehensive selection of real estate listings online. The site presents more than 97 per cent of all residential, commercial and rural properties currently marketed by real estate professionals. Focussed exclusively on people in need of property, realestate.co.nz offers superior functionality, including accurate search, school zone data and a mobile app.  Glossary of terms Realestate.co.nz provides valuable property market data not available from other sources. § Average asking price gives an indication of current market sentiment. Statistically, asking prices tend to correlate closely with the sales prices recorded in future months when those properties are sold. As it looks at different data, average asking prices may differ from recorded sales data released at the same time. § Inventory is a measure of how long it would take, theoretically, to sell the current stock at current average rates of sale if no new properties were to be listed for sale. It provides a measure of the rate of turnover in the market. § New listings are a record of all the new listings on realestate.co.nz for the relevant calendar month. As we reflect 97 per cent of all properties listed through registered estate agents in New Zealand, this gives a representative view of the market. § Seasonal adjustment is a method we use to better represent the core underlying trend of the property market in New Zealand. This is done using methodology from the New Zealand Institute of Economic Research. § Truncated mean is the method we use to provide statistically relevant asking prices. The top and bottom 10 per cent of listings in each area are removed before the average is calculated, to prevent exceptional listings from providing false impressions. Read more here.

 

 

Has the shine gone off the Auckland property market?

 

Source - Unconditional.co.nz

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Has the shine gone off the Auckland property market? Posted: 10 Jul 2016 05:15 PM PDT – Far North the new hot spot for buyers, Otago the new #1 for rental returns –  Interest in the Auckland property market has dropped on the back of ever increasing house prices and falling returns for investors. Auckland average asking prices rose again to another all-time high in June to $888,493, but searches on realestate.co.nz for properties in the city has fallen, says CEO Brendon Skipper. "It could be a turning point for Auckland, with prices now at an all-time high they're almost out of reach for the average income earner, with first home buyers the hardest hit," he says. During June, the number of users searching Auckland houses 'for sale' on realestate.co.nz fell by 19.33 per cent compared to the same time last year. The site also measures engagement and in June it fell by more than a third across the Auckland region when compared to June 2015. "Nationally, the volume of traffic to our site is comparable across the country for this time of year, but it appears buyers are moving away from looking in the Auckland area in favour of other regions," comments Brendon. Northland, Hamilton, Tauranga and Queenstown flavours of the month Searches for properties in Northland, Hamilton, Tauranga and Queenstown were up significantly in June compared to the same period last year. "It appears Aucklanders still want to stay in relatively close proximity to our biggest city, but in terms of affordability they are forced to move even further afield, or they are making lifestyle changes," he observes. Hot spots in Northland are Waipu, Whangarei Heads, Paihia and Tutukaka which all have a significant increase in users looking in those areas. "Whangarei Heads is the suburb to watch, with online engagement up by 42 per cent on same time last year," notes Brendon. In the Far North, Kerikeri Surrounds, Paihia and the Karikari Peninsula were the most searched. Further south, Hamilton and Tauranga continues to attract high levels of online engagement and Queenstown continues to be a perennial favourite," says Brendon.   Theoretical yield for new Auckland property investors takes a dive  Auckland property investors are taking a hit on their theoretical yield in the rental market. "Investors buying a house in June at the average price of $888,493 theoretically would receive 3.18 per cent yield on the average rent in Auckland – based on our calculation of average asking price vs weekly rental price, excluding all external costs,' explains Brendon. "This puts them at the bottom of the ladder across all 19 regions." See chart below. "It suggests that Auckland investors are relying on future capital gains rather than rental returns or having to look at other property types when considering their investments" Nationally, the average theoretical yield on a property is 3.96 per cent (based on the average price and rented out at the average asking rental price). By comparison, the star performer in terms of theoretical yield on investment property is Otago, showing an average yield of 7.32 per cent. National picture shows that sellers are back in the market Across the nation, sellers are coming back in the market with 15 out of the 19 regions showing an increase in new listings compared to the same time last year. "This is significant, as June is traditionally a quiet time of the year, on a par with December and January" explains Brendon. "The message seems to be getting through that with the shortage of listings and the speed in which properties are selling. It's a sellers' market. "While there is still a shortage of listings this is a positive sign for getting more equilibrium in the marketplace," he says.   About Realestate.co.nz - Realestate.co.nz is dedicated to property and is the official website of the New Zealand real estate industry. As a property listing site the information it draws on for its property report is in real time. Realestate.co.nz has the country's most comprehensive selection of real estate listings online. The site presents more than 97% of all residential, commercial and rural properties currently marketed by real estate professionals. Focussed exclusively on people in need of property, Realestate.co.nz offers superior functionality, including accurate search, school zone data and a mobile app.  Glossary of terms - Realestate.co.nz provides valuable property market data not available from other sources. § Average asking price gives an indication of current market sentiment. Statistically, asking prices tend to correlate closely with the sales prices recorded in future months when those properties are sold. As it looks at different data, average asking prices may differ from recorded sales data released at the same time. § Inventory is a measure of how long it would take, theoretically, to sell the current stock at current average rates of sale if no new properties were to be listed for sale. It provides a measure of the rate of turnover in the market. § New listings are a record of all the new listings on Realestate.co.nz for the relevant calendar month. As we reflect 97% of all properties listed through registered estate agents in New Zealand, this gives a representative view of the market. § Seasonal adjustment is a method we use to better represent the core underlying trend of the property market in New Zealand. This is done using methodology from the New Zealand Institute of Economic Research. § Truncated mean is the method we use to provide statistically relevant asking prices. The top and bottom 10% of listings in each area are removed before the average is calculated, to prevent exceptional listings from providing false impressions. Read more here.

 

 

Scarcity of houses for sale nationally creates sellers’ market

Source: Unconditional.co.nz

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Scarcity of houses for sale nationally creates sellers' market Posted: 31 May 2016 01:32 PM PDT Realestate.co.nz statistics show demand and prices up, supply down Download the full report here. The average asking price for a New Zealand house hit an all-time high with stock at an all-time low for May 2016, in a market which is heavily favouring sellers. Real-time market statistics released today by Realestate.co.nz show the May national average asking price reached $570,971, up 7.2 per cent from the same time the previous year. On the supply side in May, the number of new properties that came onto the market nationally dropped 7.1 per cent from the previous month and the long term average has also fallen. "In this environment, if no new listings were to come onto the market nationally and all the existing properties sold, theoretically there would be no properties for sale in New Zealand within 12 weeks," says Realestate.co.nz spokesperson Vanessa Taylor. "It's a classic supply and demand situation and right now it's definitely a sellers' market," she says. Heightened real estate activity has been evident across both the North and South Islands. The Central Otago/Lakes region and Nelson in the South Island are notable stand-outs, with Wellington, Waikato and Auckland in the North Island continuing to feature strongly. SOUTH ISLAND REGIONS ON THE UP In May, the Central Otago/Lakes topped New Zealand in terms of percentage average asking price at 17.2 per cent, the region also recorded the largest drop in new property listings down 32.9 per cent, both compared with the same time last year. The average asking price for Central Otago/Lakes region for May hit $819,778. Traffic data reveals a sharp increase in users residing in the neighbouring Otago region viewing property in Central Otago/Lakes, with engagement up by 75.98 per cent on the same time last year. At the other end of the South Island, it's a similar story for Nelson, which recorded a record high asking price of $510,709 and a significant drop in new property listings (down 30.9 per cent on the same time the previous year). NORTH ISLAND DOMINATED BY MAJOR CITIES  In April, Realestate.co.nz reported an all-time low in the number of properties for sale in Wellington. In May, inventory levels dropped even further in the capital city. Theoretically, if no new listings were to be posted to the site and the existing properties sold, there would be no properties for sale in just 5.1 weeks (compared with 5.6 weeks in April 2016). "Waikato also has an interesting profile," says Vanessa Taylor. "Asking prices are up a healthy 6.1 per cent on the previous month, coming closely behind Nelson and Central Otago/Lakes in terms of percentage increases across the country," she says. "At the same time new listings remain relatively static in the Waikato region. "We could be tempted to make an assumption that Aucklanders are looking further south to the Waikato. However data shows us that we have seen a strong (75.35 per cent) increase in users from the Bay of Plenty looking at the region. In saying that, the strongest interest is actually coming from users who already reside within the Waikato region," she says. "Drilling further down into the data, the hot spots in the Waikato region that are most searched are Cambridge, Te Awamutu and Morrinsville. Surprisingly, data suggests that Melville could be an up and comer with a 217.59% per cent increase in online engagement." The average asking price in the Waikato is $467,717 compared to Auckland where it stands at $879,730. Auckland is also suffering a fall in inventory levels, with listings down 9.2 per cent on the same time last year (May 2015). "A fall of close to 10 per cent in listings in one year in a city the size of Auckland is very significant," says Vanessa Taylor. "At the same time Auckland asking prices have risen in the past month by 2.1 per cent (compared with April 2016) albeit off a high value base," she says. Auckland asking house prices have risen 10.9 per cent compared to the same time last year (May 2015).   Refer infographics – § New Property Listings for May 2016, compared to May 2015 (all regions) § Property asking price for May 2016, compared to prior month (all regions) § NZ Inventory of listings for May 2016 / long term average (all regions)   About Realestate.co.nz - Realestate.co.nz is dedicated to property and is the official website of the New Zealand real estate industry. As a property listing site the information it draws on for its property report is in real time. Realestate.co.nz has the country's most comprehensive selection of real estate listings online. The site presents more than 97% of all residential, commercial and rural properties currently marketed by real estate professionals. Focussed exclusively on people in need of property, Realestate.co.nz offers superior functionality, including accurate search, school zone data and a mobile app.  Glossary of terms Realestate.co.nz provides valuable property market data not available from other sources. § Average asking price gives an indication of current market sentiment. Statistically, asking prices tend to correlate closely with the sales prices recorded in future months when those properties are sold. As it looks at different data, average asking prices may differ from recorded sales data released at the same time. § Inventory is a measure of how long it would take, theoretically, to sell the current stock at current average rates of sale if no new properties were to be listed for sale. It provides a measure of the rate of turnover in the market. § New listings are a record of all the new listings on Realestate.co.nz for the relevant calendar month. As we reflect 97% of all properties listed through registered estate agents in New Zealand, this gives a representative view of the market. § Seasonal adjustment is a method we use to better represent the core underlying trend of the property market in New Zealand. This is done using methodology from the New Zealand Institute of Economic Research. § Truncated mean is the method we use to provide statistically relevant asking prices. The top and bottom 10% of listings in each area are removed before the average is calculated, to prevent exceptional listings from providing false impressions. Read more here.

 

 

Gisborne offers highest returns for rental property investment in New Zealand*

Gisborne, followed by Otago and Manawatu/Wanganui were the best performing regions for residential

rental property investment in January, according to an analysis of data by Realestate.co.nz, New Zealand’s

largest website dedicated to property. The analysis looked at every region in the country to identify which

offered the highest returns for would-be landlord investors.

 

Gisborne returned an impressive average of 5.78% on residential rental property investment in January,

based on an average asking price of $258,515. Otago returned 5.54%, and Manawatu/Wanganui returned

5.12%. The national average for rental property returns for the month was 4.10%.

 

Brendon Skipper, CEO, Realestate.co.nz says “The results will surprise some people. There are clearly some

very attractive rental property investment opportunities in some parts of New Zealand that don’t ordinarily

attract intense national media interest when it comes to property – based on our basic calculation of

average asking price vs weekly rental price, and excluding all external costs.”

 

“While data shows the best performing region for rental property is Coromandel, we believe its unusually

high average return of 9.88% is skewed by short-term holiday rental properties. Of greater interest for

potential investors are the significant rental opportunities that exist in quite diverse parts of the country, in

particular Gisborne, Otago, and Manawatu/Wanganui,” says Skipper.

 

The rental property ROI data was calculated by comparing the average asking price of properties for sale by

region across New Zealand in January 2016 with the average annualised rent in each location. The data

assumes 100% rental occupancy, and does not account for inflation, mortgage interest payments, property

management or maintenance upkeep fees.

 

Source: unconditional.co.nz, www.realestate.co.nz 

 

* excludes Coromandel – skewed by short-term holiday rental
Table: ROI for rental properties by region – January 2016

Kind regards,

Duane Turner
Territory Owner and Inspector
Office: 09 811 8018
Mobile: 027 376 4806

duane.turner@abuyerschoice.com
www.waitakere.abuyerschoice.com

Waitakere & Surrounding Areas
         

 

Record high average asking prices in many regions, though new listings fall and inventory hits record low

Bay of Plenty breaks $500,000 ceiling in average asking price, with Waikato, Wellington, Canterbury and Central Otago also reaching new record highs

 AUCKLAND, 3 February 2016 – A number of regions across the country experienced new record highs in average asking price in January, though
this was off the back of a record low in inventory and a decline in new listings, according to data from Realestate.co.nz, New Zealand’s largest
website dedicated to property.

Brendon Skipper, Chief Executive of Realestate.co.nz, says “National inventory in January hit a new all time low of 14.7
weeks. The previous all-time low was 16.1 weeks set in October 2015. In addition, the total number of new listings across the country in January
was 8,144, down 14.6% compared to the same month a year ago. The record highs in average asking price in a number of regions need to be
seen in the context of fewer listings and tightening inventory.”

The national average asking price in January was $542,514, up 3.7% from December and ending a four month consecutive decline, though
still short of the all time high of $568,215 set in August 2015. The average asking price in Auckland fell 2.3% to $828,629 in January from $848,195
in December, though Auckland also experienced a decline in listings of 18.4% from the same month last year.

Eight regions of New Zealand experienced new record highs in average asking price in January. In particular, Central Otago
reached $861,723, the highest average asking price of any region, and an increase of 4.5% from the previous high of $824,394
set in December, though new listings were down 35% from January last year.

Bay of Plenty reached a new high of $501,961, up 3% from the previous high of $487,052 set in November, and only the fourth
region in the country to break the $500,000 ceiling. New listings for the region in January were down 7.6% from a year ago.

Other parts of the country to experience new record highs in average asking price include Wellington, Canterbury, Waikato,
Taranaki, Coromandel and Southland, most however also experienced a decline in new listings from the same time last year.

Wellington reached a new all time high in average asking price of $489,029 in January, up 2% from the previous high of $479,399
set in August last year, while new listings were down 16.9%. Canterbury experienced a new record of $483,233, up 1.3% from the
previous high set in September, with new listings down 13.6% from the same month last year.

Waikato’s new record high in average asking price was $440,784, up 6.3% from the previous high set last month of $414,596. The
new record in Taranaki was $373,668, up 1% from the previous high of $369,791 set in February 2015, while Southland ‘s new
high was $276,924, up 3.9% from the previous high of $266,398 set in January last year. New listings in January for all three regions
were down from the same month last year.

Coromandel reached a new high of $574, 271, an increase of 3.6% from the previous high of $554,303 set in November. It was one
of the few regions to experience a small increase in the number of new listings of 1.1% from January last year.

Inventory is a measure of the national supply of homes for sale, expressed as the number of weeks it would take for all currently
listed properties to sell at average rates, should no new properties get listed. The long-term national average is 34 weeks.

About Realestate.co.nz

Realestate.co.nz offers buyers the shortest path to the perfect property. As the official website of the New Zealand real estate industry,
Realestate.co.nz is dedicated to property and has the country’s most comprehensive selection of real estate listings online. The site
presents more than 97% of all residential, commercial and rural properties currently marketed by real estate professionals. Focussed
exclusively on people in need of property, Realestate.co.nz offers superior functionality, including accurate search, school zone data
and a mobile app.

Glossary of terms

Realestate.co.nz provides valuable property market data not available from other sources.

§ Average asking price gives an indication of current market sentiment. Statistically, asking prices tend to correlate closely
with the sales prices recorded in future months when those properties are sold. As it looks at different data, average asking
prices may differ from recorded sales data released at the same time.

§ Inventory is a measure of how long it would take, theoretically, to sell the current stock at current average rates of sale if no
new properties were to be listed for sale. It provides a measure of the rate of turnover in the market.

§ New listings is a record of all the new listings on Realestate.co.nz for the relevant calendar month. As we reflect 97% of all
properties listed through registered estate agents in New Zealand, this gives a representative view of the market.

§ Seasonal adjustment is a method we use to better represent the core underlying trend of the property market in New Zealand.
This is done using methodology from the New Zealand Institute of Economic Research.

§ Truncated mean is the method we use to provide statistically relevant asking prices. The top and bottom 10% of listings in
each area are removed before the average is calculated, to prevent exceptional listings from providing false impressions.
Read more here.

Source: www.unconditional.co.nz

Kind regards,

Duane Turner
Territory Owner and Inspector
Office: 09 811 8018
Mobile: 027 376 4806

duane.turner@abuyerschoice.com
www.waitakere.abuyerschoice.com

Waitakere & Surrounding Areas