Resicom – Holiday Investment – 04-21 – LB

New Zealand Property Sales Drop but Price Rises Continue

New Zealand property sales volumes have dropped as the winter chill sets in, but property prices continue to heat up.

The latest data released by the Real Estate Institute of New Zealand (REINZ) has shown average property prices rose by 5.7 per cent year-on-year in June when compared to the same month in 2017.

Despite the drop in New Zealand property sales volumes, down by 1.6 per cent year-on-year, average property prices across New Zealand rose from $530,000 to $560,000 over the last year.

There were 6,034 properties sold in June 2018 compared to 6,131 in June 2017.

REINZ attributed this difference to significant decreases in sales volumes in eight out of 16 New Zealand regions and a 9.9 per cent decrease in new property listings year-on-year.

The main area of Auckland actually saw a slight decrease in average value by 0.7 per cent year-on-year from $856,000 in June 2017 to $850,000 now.

However, other areas such as Waikato (+11.7 per cent to $525,000), Wellington (+12.3 per cent to $595,000) and Marlborough (+11.4 per cent to $440,000) reached record average prices in June, helping New Zealand’s median price excluding Auckland to a record equalling figure of $460,000 in June – up 7.0 per cent on June 2017.

REINZ chief executive Bindi Norwell said the data reveals a ‘two-tier market’ across New Zealand where prices are remaining stable in Auckland and Canterbury but rising in most other parts.

It could be that new measures to limit the number of overseas property investors is having an impact on New Zealand property sales volumes, as many areas saw a significant drop, the worst being the West Coast at -25.7 per cent.

However, some regions saw a strong increase in sales including Hawke’s Bay (+23.0 per cent), Tasman (+22.8 per cent) and Manawatu/Wanganui (+14.1 per cent), implying that both New Zealand and overseas property investors might simply be being choosier on area.

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