REINZ: Aucklanders buying up large in the regions
There has been a lot of interesting discussion in the residential investment property market over the past couple of weeks. First there was the bright line test proposal released by the IRD, then the Housing Minister's insulation and smoke alarm announcement – and, of course, who can forget about THAT controversial foreign buyer data released in the media over the weekend.
Now the Real Estate Institute of New Zealand (REINZ) has released price and sales statistics for June, along with some really intriguing commentary. The national median price was $450,000 in June, which was actually a 2.2 per cent decrease from May. However, figures show a 5.4 per cent increase over the past 12 months.
Once again, Auckland has dominated the trajectory of house prices. Excluding the Auckland region, the median price nationwide remained steady on the same time last year. But if we take a look at pricing for Auckland over the past year to June, we'll see a 26 per cent increase and another record median price set during the month.
So what impact is this having on buyers in the City of Sails? REINZ Chief Executive Colleen Milne highlighted that the region is still seeing low listings and high demand, but there might also be a fair few vendors packing their bags and leaving the city for good.
This once again brings up the argument about the 'Auckland effect'. Ms Milne pointed out that residential investment property in Hamilton may see the benefits in the months ahead, with markets in regions like Northland and Waikato/Bay of Plenty seeing a drop in the number of properties for sale. Auckland buyers are being identified as the culprit in these areas.
"There is increasing evidence that Aucklanders are looking out of the region for properties, both as owner-occupiers and for investment properties," she said.
Whether this actually has an impact on prices in locations like Hamilton remains to be seen, but it's definitely something to keep an eye on. After all, with the opportunities for property investment in New Zealand so strong, broadening your portfolio may be an option.
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