New records for residential real state estate market
21 May 2003
April sees new records for residential real estate market - Real Estate Institute
The New Zealand residential property market hit new highs in April despite lower turnover, according to the Real Estate Institutes’ National President, Mr. Graeme Woodley.
Mr. Woodley said the national median price has risen to $203,000, up $3,000 from last month and $14,000 up on last year, despite the fact that the national sales volume eased to 9,047 compared to last months record breaking sales of 10,747 and sales of 9,224 in April 2002.
The Auckland market again led the way with a further surge in the median price from $279,500 in March to $290,000 in April, compared with $265,000 in April 2002. Mr. Woodley said the buoyancy of the Auckland market had led the rise in the national median, given the fact that a number of regions showed an easing of prices.
Mr. Woodley said, “The easing in sales volume is largely due to external factors, such as the impact of Easter and ANZAC day, but in addition to this, our members have reported a nationwide shortage of listings, particularly in relation to the extremely high level of enquiry from potential homebuyers. This is borne out by the Institute’s records of ‘median days to sell’, which has dropped from 36 days in April 2002 to 29 days to sell in April 2003.
“Interestingly while Auckland led the way, a number of regions appeared to lose ground, albeit temporarily, due, we suspect to the short trading month”.
Northland prices eased from the $168,000 median in March to $150,000 in April, Taranaki was down from $123,000 in March to $117,000 and Wellington was relatively flat with the median slipping slightly from $225,250 in March to $225,000 in April.
Nelson Marlborough also appeared to wane, slipping from the March median of $210,000 to $198,000 in April while Canterbury Westland was down from $158,000 in March to $155,000, although Otago continued its recent steady climb from $115,000 in March to $121,000 in April.
“What this indicates is a few regional ‘blips’, but overall the market appears very solid and clearly there is a lot of capital flowing into residential property, both from occupiers and investors.”
The April 2003 national median of $203,000 when compared with the April 2002 figure of $189,000 – showed an increase year-on-year of 7.4 per cent.
Auckland prices firmed 9.43 per cent to $290,000 over the April 2002 figure of $265,000, and also improved on the March 2003 figure of $279,500. Conversely activity eased slightly with 3,009 sales, compared to 3,379 in April 2002.
Although Wellington house prices remained relatively steady at $225,000 in comparison to last month’s record of $225,250, they showed a good improvement on April 2002, when a median sales price of $212,000 was achieved. Sales fell slightly from last month and last year, reaching 1,039, compared to 1,250 in March and 1,079 in April 2002.
Houses sold in Central Wellington totaled 84, down on last month’s 106 sales. Despite reduced sales the median price for houses in the area continued on an upward growth path, reaching $328,750 (March: $305,000; April 2002: $292,500).
The median price for Eastern Wellington continued to strengthen on a month-to-month and year-to-year basis to $320,500, despite sales easing to 56, compared to last months 73 sales.
Western Wellington sales also fell, this time down 20 sales on March’s 80, meanwhile the median house price remained strong at $362,000, as opposed to $303,500 for March and $275,000 for April 2002.
On month-to-month comparison, sales in the Canterbury/Westland region showed signs of easing, with a decrease in houses sold, from 1,377 in March 2003 to 1,251 in the latest period. However the sales volume compared well with the 1,087 sales in April 2002 and was well up on 2001 and 2000 sales of 701 and 644 respectively. The median sales price for the region of $155,000 kept pace with the March 2003 figure of $158,000 and was much improved on the $146,000 recorded in April 2002.
Sales volume and median price eased on a month-to-month basis in Christchurch City, with total sales falling to 784, against March’s figure of 931 houses sold and the median sales price eased to $170,000 compared to the $175,000 recorded last month.
58 houses were sold in the North Inner suburbs of Fendalton/Ilam and Merivale for a median price of $313,500, well below last month’s sales of 92 houses at a price of $323,750. Meanwhile, Riccarton and Upper Riccarton sales declined to 40 with a median price of $169,000 compared to March’s recording of 45 housing sales at $185,000.
The 286 sales in Dunedin City were down on the 343 recorded last month but were slightly improved on the April 2002 sales volume of 281. The median price improved on both a month-to-month and year-to-year basis, reaching $122,750 compared to $115,000 in March and $105,000 in April 2002. -ENDS-
Regional Highlights: Northland: Northland’s April 2003 figures remained steady at $150,000 compared with April 2002 figures of $155,000. However the median price for April fell $18,000 from last months $168,000 median. The number of houses sold also decreased on a year-to-year and a month-to-month basis. 52 sections were sold in the Northland district, attaining a median price of $81,000.
Auckland Auckland house sales increased steadily to $290,000, in comparison to last months $279,500 median price. This is up significantly on the April 2002 median of $265,000. The number of sales for the Auckland region fell in comparison to last month’s and last year’s figures, at 3,009 sales for the month. North Shore prices showed a continuous increase on previous figures with a median price of $326,000 for the month of April. Sales declined in April to 595, in comparison to last months total of 706 and April 2002 sales of 658. Waitakere region prices remained steady at $230,000 for April and March 2003. This is an increase on last year’s median price of $198,500. Although the median price remained steady, the number of houses sold eased slightly, to 419, from last month’s figures of 459. Auckland City’s median price has increased considerably to $355,730 compared with last months figure of $322,000 and the April 2002 figure of $308,000. Sales eased from 1,401 for March to 999 for April 2003. The median price remained relatively static for Manukau’s housing market, at $275,000, an increase of $2,150 on March’s $272,850. Sales for the region declined slightly to 539 in comparison to last month’s results, but were an improvement upon April 2002 figures (March 2003: 644; April 2002: 578). Sales volume fell in Papakura, from March’s total of 85 to 68 for April 2003. The median price rose to $224,000, compared to the March figure of $189,000 and the April 2002 figure of $192,500. Prices for the Metropolitan Auckland area reached a new high of $300,000, compared with the March median of $286,000 and April 2002’s median of $270,500. Sales declined with 2,620 transactions (March: 3,295; April 2002: 3,005).
Waikato / Bay of Plenty / Gisborne Median prices for the Waikato/Bay of Plenty/Gisborne region remained strong at $180,000, an increase of $7,000 on March and up $11,000 on the April 2002 figure of $169,000. Sales for the area at 1,415 eased slightly from last month, but have increased when compared to 2002 figures (March 2003: 1,637; April 2002:1,389). 194 sections were sold at a median price of $72,250.
Hawke’s Bay The Hawke’s Bay region showed continual improvement in median prices for the month of April, with a median of $156,500, up $6,000 on last month and an increase on the April 2002 figure of $131,100. However, the 326 houses sold fell slightly on last months 383 sales, but were an improvement on last year’s 228 sales. 39 sections were sold for a median price of $100,000.
Manawatu / Wanganui Housing figures for the Manawatu/Wanganui region remained strong with a median of $114,000, up $4,000 from March, but staying stable compared to April 2002’s figure of $115,000. Sales dipped slightly at 473, below March’s 501 sales, but increased on 394 sales in April 2002.
Taranaki Sales in the Taranaki area decreased from 261 in March to 210 in April 2003. The median price also eased to $117,000 compared to $123,000 in March, but was up on the April 2002 results of $105,750. Ten sections changed hands in April as opposed to 21 in March with a decreased median price of $65,000 on last months $85,000.
Wellington Wellington housing prices remained steady at $225,000 in comparison to last month’s median of $225,250. Sales fell slightly from last month (April 2003: 1,039; March 2003: 1,250). Houses sold in the Central Wellington area totalled 84, down on last month’s 106 sales. Despite reduced sales the median price for houses in the area continued on an upward path reaching $328,750 (March: $305,000; April 2002: $292,500). The median price for Eastern Wellington continued to strengthen on a month-to-month and year-to-year basis to $320,000, despite sales easing to 56, compared to last months 73 sales. Western Wellington sales also fell, this time down 20 sales on March’s 80, meanwhile median housing prices remained strong at $362,000, as opposed to $303,500 for March and $275,000 for April 2002.
Nelson / Marlborough Nelson/Marlborough recorded a decline in housing prices, easing to $198,000 for April 2003, down $12,000 on last month’s results of $210,00, but an improvement on the April 2002 figure, of $167,750. The total number of houses sold remained steady at 388 (March 2003: 374; April 2002: 356).
Canterbury / Westland Sales in the Canterbury/Westland region decreased from 1,377 in March 2003 to 1,251 in the latest period. The median price for April, $155,000 dipped slightly from March’s figure of $158,000. Christchurch City’s sales fell to 784, compared with March’s 931 sales. Median prices also eased at $170,000 compared to the March median of $175,000. Despite the drop in sales and median price for the month of April, they remained ahead of April 2002 figures, when 729 houses were sold at a median of $160,500. 58 houses were sold in the North Western Inner suburbs of Fendalton/Ilam and Merivale at a median price of $313,500, well below last month’s sales of 92 houses at a price of $323,750. Meanwhile, Riccarton and Upper Riccarton sales declined to 40 with a median price of $169,000 compared to March’s 45 sales at $185,000.
Otago In the Otago area sales at 449 were below March’s 549, but median prices continued to strengthen, up to $121,000 compared to last months median price of $115,000. Dunedin City and South Otago’s median price (Dunedin City: $122,750; South Otago: $80,800) continued a steady growth on a month-to-month and a year-to-year basis, despite falling sales (Dunedin City: 286 compared to 343 in March; South Otago: 32 compared to 36 sales in March). Sales for Central Otago fell from 79 in March to 72, with a median price of $222,500, down on last months $245,000 figure, but up on April 2002’s $158,000 price.
Southland The median price stood at $95,250, an increase on both the March figure of $94,500 and Aprils 2002 recorded median of $82,000. 39 sections changed hands in the Southland district at a median price of $95,000.