How are sales faring in New Zealand?
When you're chasing profit, property investment can sometimes feel like a game of cat and mouse. There are so many things to keep in mind, particularly when you're thinking about putting your money on a residential investment property hub of Auckland. The Real Estate Institute of New Zealand (REINZ) is a good source of information when you're figuring out where to purchase, and its latest sales data for February sheds some light on where buyers are chasing property leads.
Auckland retains its crown
It's been a consistent year so far and it looks like sales are still heading on an upward march. In March 12 release, REINZ suggested that Auckland is propping up the country's property market. Nationwide, sales were up 12.6 per cent on the same period last year – and 42.5 per cent when compared to January. There were a lot more properties sold in February than in January but Auckland regions were responsible for quite a bit of this growth.
Sales figures for the Auckland region grew by an outstanding 34 per cent in February compared to January, and there were 10 per cent more sales in February than in the same month last year. REINZ points out that this is the largest number of sales in February since 2007. In Auckland City and Rodney, sale volumes soared astronomically – there were 50 per cent more sales in this area in February than the previous month.
REINZ Chief Executive Colleen Milne said this was mostly in line with the normal jump in sales for this time of year, but it's becoming clearer that there is a big gap between Auckland's performance in property compared to elsewhere in New Zealand.
"The data also shows that there has been no increase in the median price for New Zealand, excluding Auckland, between February last year and February just gone," she said.
"This underlines again the view that there are two distinct real estate markets in New Zealand – Auckland and the rest of the country."
Where else are properties being sold?
Sometimes it can seem like Auckland is the beginning and end of property investment in New Zealand. It might be the most obvious choice, but there are always a few other options when you're looking to expand your portfolio. You might even want to spread you wings and head south to the Waikato, where residential investment property in Hamilton could be growing as a real contender.
In a February newsletter, Harcourts said that buyer activity was the highest the agency has seen in a decade in the Waikato, Bay of Plenty and Coromandel, which is an encouraging sign that regional property markets could be following Auckland's lead onwards and upwards.
Sales are a good indicator that vendors and sellers alike are scouring the area for property. REINZ figures show that while the Auckland region recorded a massive jump in sales, the Waikato/Bay of Plenty saw the largest increase. Sale volumes climbed 61.8 per cent alone in February and, in fact, sales jumped 67 per cent in Hamilton – this could be a great opportunity to explore where demand is high among buyers.
Whether you're dipping your toe in the investment market for the first time, or want to expand your portfolio, residential property advice from an Authorised Financial Adviser can help you find a good option for your dollars.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert
Contact us now!