Market tough for affordable homes

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Auckland property prices continue to rise. Photo: Supplied
Auckland property prices continue to rise. Photo: Supplied

Auckland real estate prices are on the rise, making it harder for buyers to purchase affordable homes.

Families search for the most affordable suburbs in Auckland. Sharon O’Brien from Barfoot & Thompson says figures show Otara, Manurewa, Papakura and Sunnyvale are among the 10 most affordable suburbs for April 2015.

Helen Metcalfe from Harcorts real-estate says: “Residential buyers can still find value for money in Auckland’s southern suburbs including Otahuhu, Manukau, Manurewa and Mangare Bridge, with average house prices ranging between the mid 300K and mid 400K mark within these locations.”

Metcalfe adds: “Buyers looking to purchase in Mangare Bridge and Manurewa will need to be quick, with intense competition for affordable housing in Auckland driving prices in these suburbs up at a faster rate than the regional average.”

The average prices in Pukekohe have jumped 19 per cent this year to 488k, with competition heating up in the desirable commuter suburb. Metcalfe expects the average house prices in Pukekohe to continue to rise throughout 2015, hitting the 500k plus bracket.

Metcalfe also says: “It’s worth keeping an eye on popular western suburbs including Henderson and Blockhouse Bay where house prices vary and good value can still be found.”

Auckland was classed as the ninth least affordable major city in the world according to the 11th annual Demographia International Housing Affordability Survey. Auckland has featured in 11 surveys to date, being labeled severely unaffordable in all.

With the increase in property prices families are struggling to find suitable living within budget. And things look set to get harder as the 2015 property values look set to keep rising.

Click here to see the full 11th Annual Demographia Survey.

Top 10 Most unaffordable major cites in the 11th Annual International House Affordability Survey.
The Top 10 least affordable major cites in the 11th Annual Demographia Survey.

 

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