The Waiheke residential property market has performed strongly again over the last year. Median values have increased with capital appreciation spreading to suburbs located further from the ferry terminal.
Increased competition for property has seen transactions concluding at a faster rate than has been the case in recent years. The elevated levels of activity have resulted in increased confidence within the development sector leading to a sharp increase in construction activity. There has also been a positive flow on to the lifestyle market sector with sales activity reaching multi year highs.
Residential property values within Waiheke Island suburbs have continued to trend upwards over the last year with the Island’s median sitting at $680,000 as at the September quarter an increase of $54,000 or almost 9% since the same period twelve months prior. The increase in values has been attained despite a slight dip being recorded in the September quarter as has tended to be the case over recent years.
Sales activity has held at elevated levels over recent months following a sharp lift registered in late 2012. The increase in activity driven, primarily by interest from Auckland buyers attracted to Waiheke due to its many lifestyle advantages and its affordability when compared to many of the city’s inner suburbs.
This demand has, in turn, sparked a sharp increase in median sales prices following a lengthy period, post the Global Financial Crisis (GFC), when the median remained relatively stable. Between late 2012 and mid 2015 however, sales statistics released by the Real Estate Institute of New Zealand (REINZ), show the median to have risen by 40% peaking at $730,000 in June 2015. In the September 2015 quarter 75 sales were concluded which was nearly 9% less than the same period a year earlier. Sales transactions on the island hit historical lows mid GFC when during the September quarter of 2008 only 20 sales were completed. Since then though activity levels have been increasingly trending upwards with annualised volumes of sales now consistently being recorded higher than pre GFC levels with approximately 320-350 sales per annum...read more.
Development Activity on the increase
The continued high demand for property on Waiheke has resulted in a response from the development sector as illustrated by the sharp increase in consent numbers, as shown in the graph.
Annualised consent numbers are up nearly 70%compared with the same period in 2014. This increase in development activity will help to alleviate the housing shortage and the impact of high demand for properties on the island...read more.
Still More Push Than Pull
Despite an increase in regulations surrounding the Auckland housing market the strength of current drivers will result in further value gains, albeit at a slower pace than has been witnessed over the last two years.
Measures put in place to lower demand include, mortgage lending restrictions in Auckland being tightened, new tax rules for investors and new requirements for overseas buyers. From October 1, all overseas buyers of property in New Zealand have had to have a local bank account and Inland Revenue tax number as well as supplying a tax number from their home country...read more.
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