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Bayleys Research


NEWS BULLETIN OCTOBER 2008

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New Zealand Residential Update

After a decline in the month of August the New Zealand residential dwelling median sale price has for a third time this year rallied to hold firm against further falls, according to the Real Estate Institute of New Zealand (REINZ). The national median sale price was maintained in September at $330,000 and, despite this latest figure reaching a nineteen month low, it is only 6.6% down from the national peak of $352,000 recorded in November 2007.

 

 

The volume of sales has increased for the month reaching a five month high as the market starts to climb out of the winter doldrums. In September there were 4,499 residential dwellings sold throughout New Zealand, almost 300 more than the preceding month. Although this is historically at a low level, it is an indication that we may see more market activity with the arrival of spring.

 

 

On a regional level, it seems to be the metropolitan areas which have been affected most by value depreciation. Over the last 12 months Auckland’s median dwelling price has decreased 4.9% to $423,500. The Northland residential market has also lost some momentum over the last year, with the median residential dwelling price dropping 7.6%. Both Canterbury and Wellington have also experienced a significant decrease of 7.9%.

Central Otago lakes is the only district to record positive growth in the year to September albeit by only 0.5%. Due to the low sales volumes in this area this increase in price is hard to conclude as significant, as low sales volumes can easily skew market trends. However a median sale price of $480,000 is still significant as it tops all other regions.

In contrast, rural regions seem to be performing better, even if growth in the year to September has been negative. Waikato/BOP, Taranaki and Nelson/Marlborough stand out as regions less affected all recording growth for the year to September higher than -3.2%.

 

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