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MARKETBEAT - Eastern Suburbs Spring Report

Tags: Auckland Marketbeat Research Residential

Residential properties in Auckland’s Eastern Suburbs continue to command some of the highest prices in the country. The quarterly median hit a peak of $1,400,000 last quarter.

While this has receded slightly in the quarter to September 2015 this latest figure of $1,371,000 equates to a $201,000 or 17% increase from the same quarter twelve months prior when the median was $1,170,000.

Ending the winter sales season on a high, when it is typically quieter than other seasons, quarterly sales volumes are on the up, with 12% more homes sold compared to the same period a year earlier, concluding the quarter with 435 homes sold. The volume of sales have had a sustained recovery since the global financial crisis (GFC) but are yet to return to the 2005-2007 pre GFC levels.

Exemplifying the continuing demand for property in the Eastern Suburbs and Auckland, is the weeks to sell figure i.e. the time it would take to sell the total current inventory of houses for sale, assuming no further listings are taken on. This currently sits at historical low levels of 9.7 weeks. The long term average is 25 weeks.

Total inventory in the region is just over half the long term average with 6,815 homes for sale, and with 3,052 sales monthly sales, remaining well above the long term average, this explains the shortage of stock and extremely low weeks to sell after months of these trends influencing the more.

Spotlight on Parnell

Often billed as Auckland’s oldest suburb, Parnell, located only 2km from the city centre, dates back to the earliest days of European settlement in 1841.  With the quaint Victorian style village attracting boutique fashion and food offerings, its proximity to the waterfront, Hobson Bay and the picturesque Auckland Domain, it is understandable the demand to live within the suburb has not waned. 

Between the 2006 and 2013 censuses the population in Parnell swelled 8.8% to have 7,092 residents; the Auckland region grew 8.5% in the same period. The increased population reflects the popularity of the suburb due to its proximity to the CBD and universities and has been accommodated through the intensification of housing more.

Spotlight on Kohimarama

Sometimes overlooked because of its highly regarded neighbours, Kohimarama, only 9km from the city centre, is nestled between the villages of St Heliers and Mission Bay, albeit it boasts equally impressive views across the harbour and out to Rangitoto more.

Still more Push than Pull

Tighter credit controls aimed at Auckland residential property investors, the introduction of a brightline test and new regulations aimed at overseas buyers will slow the Auckland housing market in 2016.  However the positive drivers of the market, predominantly, low interest rates, population growth and a regional housing shortage will continue to hold sway resulting in continued value appreciation over the more.

Read the full Marketbeat report online here.

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