Residential property values within Auckland’s South Eastern suburbs continued to grow in the September quarter following a sharp increase during the winter quarter.
The September quarterly median hit a peak of $791,500 according to the Real Estate Institute of New Zealand (REINZ). This is a $164,500 or 26% increase from the same period twelve months prior when the median was $627,000.
Quarterly sales volumes are slightly up, with nearly 4% more homes sold compared to the same period a year earlier, concluding the quarter with 339 homes sold in the region. This follows a bumper autumn/winter sales season which saw 429 homes sold in the quarter to June 2015. Demand for homes in the area pushed median prices up an unprecedented level of 18% over April, May and June, the largest median value growth over a quarter seen in the area over recent years. Generally,the number of quarterly transactions have been trending steadily upwards since the GFC low of 170 sales in December 2008 but are yet to consistently sit at pre GFC levels where the average number of quarterly sales transacted were approximately 430.
Exemplifying the continuing demand for property in the South 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 region.
Spotlight on Mt Wellington
The suburb surrounding Auckland’s youngest volcanic peak also called Mt Wellington is located 10 kilometres from Auckland CBD. The suburb is extremely well served by transport, retail and education infrastructure which adds to the attraction of the area. The eastern train line runs through to one of the largest shopping centres in New Zealand, Sylvia Park, with the suburb also serviced by a number of bus routes, schooling includes the highly regarded St Kentigern College with the Pakuranga campus located in the vicinity...read more.
Spotlight on Panmure
Panmure, positioned near the narrowest part of the Auckland isthmus, 11 kilometres south east of the city centre has experienced similar population growth between the 2006 and 2013 census. Historically the suburb was a small, prosperous but mostly pastoral setting, due to its locality to the Tamaki River Estuary and Panmure basin, significant growth was only experienced as Auckland expanded eastwards and following connection to Pakuranga with new bridges, it is now a bustling community centre...read 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 year...read more.
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