Overall prices have cooled in the City of Sails, but some areas are on the rise… Auckland saw a 1.3 percent decrease in the median house price in May compared with the same time last year.
Auckland saw a 1.3 percent decrease in the median house price in May compared with the same time last year, according to the latest data from the Real Estate Institute of New Zealand (REINZ). Statistics show the median house price has dropped to $852,000 from $862,800 over the 12 months.
Despite this, some areas in Auckland are bucking this trend and performing extremely well. Suburbs in Franklin and Rodney districts are two areas that are showing growth, proving that Auckland’s property market is a little more complex due to differing sales patterns within the region. So why are some suburbs selling better than others in Auckland?
Location, location, location
One of the major reasons is location. There is clear demand for properties on the outskirts of Auckland such as Franklin and Rodney. Figures from REINZ show a 6.6 percent increase in prices for homes sold from May 2017 to May 2018 in Franklin. The steady demand with a moderate increase in sales helped lift the median price to $710,000 in May this year, compared to $675,000 at the same time last year. Similarly, Rodney has seen an increase of 6.4 percent year-on-year, taking the median to $905,000, compared to $875,000 a year ago. The REINZ report says Rodney has ”seen an influx of out-of-towners looking to resettle within the region”. This could be due to parts of Rodney currently experiencing high growth in commercial building activity but it’s also due to the type of houses available.
Property & Proximity
Without a doubt, the types of properties available are a pull factor to suburbs in both Franklin and Rodney districts. There are two types of properties in these locations that are selling well - those in newer subdivision-style arrangements and also traditional ‘lifestyle’ options. “Typically, properties in these locations are generally newer homes, with larger floor area and on fairly compact sections,” says Bayley’s National Residential and Auction manager, Daniel Coulson.
The newer homes in both Franklin and Rodney districts suit modern living, and their location and commutable proximity to Auckland city means you can have the best of both worlds. From somewhere like Pukekohe, in Franklin, the commute to Auckland without traffic can be just one hour, and from Helensville, in Rodney district, it’s even quicker at just over 40 minutes. Coulson agrees the commute time is achievable for most people. “The locations allow for reasonable commuting times to either their local business hubs or the CBD of Auckland,” he says.
Although there is no set ‘type’ of buyer in these suburbs the areas do allow for more space for families at a relatively affordable price point. This means money can go further and people can buy a bigger house on the outskirts of the big city than they could afford in the central suburbs of Auckland.
In terms of sales volume the real estate industry in New Zealand has had the highest year-on-year increase in 23 months. And if you take a look at the price breakdown this helps to explain why Auckland has experienced a decrease in median price. While the number of properties that sold for between $250,000 and $750,000 increased, the number sold in the $750,000 and above bracket fell, bringing down the overall median price. Added to that, the median number of days to sell in Auckland increased to 37 days, which is two days longer than during the same month last year.