The Auckland housing market is booming with values increasing by a whopping 24.4 percent from a year ago, recent figures from Quotable Value (QV) show.
A QV statement says: “Home values across the Auckland region continued to show massive value increases over the past year.”
The new QV shows that values rose most sharply in the city’s eastern area, which includes St Johns, Meadowbank, Glen Innes, Point England, Orakei, Kohimarama, Mission Bay, Ellerslie, St Heliers and Greenlane. Values there rose 23 percent annually and 6.2 percent in the past three months.
QV Home-value Operations Manager Northern, Jan O’Donoghue says, “Sales volumes remain more than 30.0 percent higher than this time last year so despite reports of fewer people attending open homes and auctions homes are still selling well across the city.”
It has been speculated that one of the reasons Auckland’s house prices are rising is because of high net migration and record low-interest rates.
QV national spokesperson Andrea Rush says buyers are being forced to go elsewhere to buy due to steep increases.
“Large numbers of Aucklanders are flocking to buy property in Tauranga, Hamilton and the western Bay of Plenty resulting in rising values in these areas. There are reports that of those present at open homes in Tauranga, as many as 60 percent are regularly from Auckland, while around 15 percent of all buyers in the Hamilton market are now from Auckland,” she says.
As a result, the average house price in New Zealand is now sitting at $550,000 – up 14 percent over the past year – which is the fastest rate increase since March 2006.
The new QV numbers:
- Whangarei, 7.6 percent
- Auckland, up 24.4 percent
- Hamilton, up 18.2 percent
- Tauranga, up 13.7 percent
- Wellington, up 3.2 percent
- Hurinui District, 8.7 percent
- Christchurch, up 2.7 percent
- MacKenzie District, up 17.2 percent
- Dunedin, up 4.2 percent
- Queenstown Lakes District, up 8.4 percent
- Grey, Buller, Westland, Kaikoura, Clutha districts in the South Island and Kawerau, Tararua, Masterton, South Wairarapa districts in the North Island had value decreases.
The QV House Price Index statistics can be viewed here.