Regional NZ is tempting house hunters, while interest in cities declining

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Focus for Kiwi home buyers turns to Hawkes Bay, Otago, Gisborne, Manawatu-Wanganui. Demand in Auckland falls for 12 consecutive months and apartment prices hit new all-time high.

Regional New Zealand is tempting home seekers, while interest in cities such as Auckland and Wellington is declining, says realestate.co.nz spokesperson Vanessa Taylor.

“We’ve seen the cost of Auckland houses moving upwards and now the average asking price for an apartment in the city has hit an all-time high,“ she says. 

 

Asking Price Map Feb 2017

 

Real-time market statistics from realestate.co.nz show that for the month of February the average asking price for an Auckland apartment hit an all-time high of $711,892, but is still more obtainable than a house in the city (average asking price $950,446).

“For many buyers, it could well be a matter of embracing apartment living, accepting the reality of today’s asking prices, or looking to move or invest in another region,” she says.

 

New Listings Map Feb 2017

Auckland is experiencing a double digit fall in demand (10.8 per cent), as is Wellington (18.8 per cent). “Demand” is measured by taking the average number of listing views on residential properties over the last three months and comparing it to the same time last year.

Real-time demand statistics from realestate.co.nz show that the regions people are looking include the Hawkes Bay, Otago, Gisborne and Manawatu-Wanganui.

 

Inventory Map Feb 2017

 

The increase in demand in those regions is 7.5 per cent, 8.6 per cent, 17.0 per cent and 23.6 per cent respectively. 

What you get for your money in those regions for around the same price as an Auckland apartment is compelling.

 

The price of an Auckland apartment

 

Gisborne: Sitting on a generous slice of land, this five-bedroom home comes complete with a modern kitchen, sprawling garden and swimming pool. Will the shed be your DIY haven or converted to an artist’s studio? See more.

Hawkes Bay: This spacious three-bedroom family home with seaviews is located in the heart of Napier. A salt water swimming pool and pleasant outdoor area will have you wining and dining al fresco all year around. See more.

Otago: Located near the coastal town of Brighton (a short drive from Dunedin), this four-bedroom home and lifestyle block occupies a premium position on an elevated site with commanding ocean views. See more.

Manawatu-Wanganui: This uber-modern 303m2 home features four bedrooms, a stunning kitchen, landscaped gardens and warm timber flooring. Within walking distance to eateries, shops, good schools and the region’s best golf course, what’s not to love? See more.

“A drop in big city demand shows us that it’s not just retirees who could be considering cashing up and moving away from cities like Auckland,” says Vanessa.

“With technology and internet advancements the way they are, and with more people working from home, it is now more feasible for young people who still need to work to do so remotely from the regions. Younger house hunters who can’t afford big city prices now have another consideration set.”

The percentage growth of job advertisements on SEEK.co.nz show that in January 2017 compared with January 2016, there has been growth in four of regions where New Zealanders are increasingly looking for property on realestate.co.nz.

 

LOCATION - % growth job ads on SEEK: Jan 2017 vs Jan 2016

Hawkes Bay 16%

Otago 24%

Gisborne 42%

Manawatu 4%

 

 

Demand Map February 2017

 

About realestate.co.nz

Dedicated only to property, realestate.co.nz is the official website of the New Zealand real estate industry. As a property listing site, the information it draws on for its property report is in real time. With the country’s most comprehensive selection of real estate listings, realestate.co.nz represents more than 97 per cent of all residential, commercial and rural properties currently marketed by real estate professionals.

 

Glossary of terms

Being the only provider of real estate data in real time, realestate.co.nz offers valuable property market information not available from other sources.

Average asking price gives an indication of current market sentiment. Statistically, asking prices tend to correlate closely with the sales prices recorded in future months when those properties are sold. As it looks at different data, average asking prices may differ from recorded sales data released at the same time.

Inventory is a measure of how long it would take, theoretically, to sell the current stock

at current average rates of sale if no new properties were to be listed for sale. It provides a measure of the rate of turnover in the market.

New listings are a record of all the new listings on realestate.co.nz for the relevant

calendar month. As realestate.co.nz reflects 97 per cent of all properties listed through registered

estate agents in New Zealand, this gives a representative view of the New Zealand property market.

Seasonal adjustment is a method realestate.co.nz uses to better represent the core underlying trend of the property market in New Zealand. This is done using methodology from the New Zealand Institute of Economic Research.

Truncated mean is the method realestate.co.nz uses to provide statistically relevant asking prices.

The top and bottom 10 per cent of listings in each area are removed before the average is

calculated, to prevent exceptional listings from providing false impressions.

Demand: the comparative view per listing change, by new listing in the previous 3 months compared to the same time last year
 

For media enquiries, please contact:

Kate Carter, PPR                                                       

T: +64 21 514 004  E: kate.carter@ppr.co.nz

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