AUCKLAND, 3 June 2015 – Aucklanders are significantly more interested in properties outside their region compared to the same time last year, according to the latest data from Realestate.co.n z, the website with the most property listings in New Zealand.
“The number of people from Auckland looking at properties in otherparts of the country has increased significantly over the year from last May. This is a dramatic change in online searching behaviour, which could well be driven by record high property prices in Auckland,” says Brendon Skipper, CEO of Realestate.co.nz.
Properties for sale in Hawke’s Bay have attracted the greatest increase in levels of interest, with 152.2% more Aucklanders looking at properties in that region compared to the same month last year. Other regions which have seen a jump in interest from Aucklanders include Manawatu/Wanganui (+123.4%), Waikato (+113.8%), Northland (+85.5%) and the Bay of Plenty(+83.5%).
While Aucklanders are spreading the net wider when they look for property, offshore Asian investors appear to be showing less interest than before in the country’s property market, with 20% fewer viewers from Asian countries looking at New Zealand properties online this May, compared to the same month last year. However, this decrease is largely offset by a 19.9% increase in interest from investors elsewhere in the world, particularly from Australia, the USA and the UK.
Average asking price in Auckland stabilises
Meanwhile, asking prices for houses in Auckland stabilised in May, according to Realestate.co.nz. The average asking price in the city was $793,260, which is a marginal increase of 0.5% from the record high in April.
However, significant increases in asking price in a number of other regions across the country in May pushed the national average asking price to a new all-time high of $532,638, an increase of 2.1% on the previous record set in April. The biggest jump was recorded in Central Otago, where the average asking price in May was $699,435, up 15.7% from April. Other regions with big increases include Southland (up 12.5%, to $261,598), West Coast (up 11.3%, to $298,130), Bay of Plenty (up 5.5%, to $466,222), and the Coromandel (up 5.2%, to $518,303). Bucking this trend were Gisborne and Marlborough, where the average asking price decreased notably, by 8.7% and 6.6% respectively.
Fewer homes listed for sale
There were 10,381 new listings nationwide in May, which was 3.4% less than the same time last year. Despite the national decrease, listings in some regions did increase, such as Auckland (3,769 new listings, up 2.9% compared to May 2014), Canterbury (1,319, up 1.8%), Waikato (740, up 4.4%), Taranaki (259, up 13.6%), Central North Island (182, up 52.9%) and West Coast (64, up 12.3%).
The national average in overall inventory of available housing stock for sale fell to an all-time low of only 20 weeks in May, breaking the record of 21.3 weeks set just the month before. Inventory is a measure of supply and demand that indicates how long it would take, in theory, for all the current properties on the market to be sold at the current average rate of sales. The long-term national average, since January 2007, is 35 weeks.
For media enquiries, please contact:
Eugene Afanassiev, Camino public relations Vanessa Taylor, Realestate.co.nz
T: +64 21 0290 7045 T: +64 275 760 260
Realestate.co.nz is the official website of the New Zealand real estate industry, and provides the most comprehensive selection of licensed real estate listings. Realestate.co.nz lists more than 120,000 properties each year, representing more than 97 per cent of all listings currently marketed by real estate professionals.
Truncated mean The monthly asking price for new listings presented in this report utilises the measure of ‘truncated mean’. This measure is judged to be a more accurate measure of the market price than average price as it statistically removes the extremes that exist within any property market that can so easily introduce a skew to traditional average price figures. The truncated mean used in this report removes the upper 10% and the lower 10% of listings in each data set. An average or mean of the balance of listings is then calculated.
Methodology With the largest database of properties for sale in NZ from licensed real estate agents, realestate.co.nz is uniquely placed to immediately identify any changes in the marketplace. The realestate.co.nz NZ Property Report is compiled from new listings coming onto the market from the more than 1,000 licensed real estate offices across NZ, representing more than 97% of all offices. With an average monthly level of over 10,000 new listings, the realestate.co.nz NZ Property Report provides the largest monthly sample report on the residential property market, as well as a more timely view of the property market than any other property report. The data is collated and analysed at the close of each month, and the Report is compiled for the 1st day of the following month. This provides a feedback mechanism as to the immediate state of the market, well in advance of sales statistics, which by the very nature of the selling process can reflect activity with a lag of between 2 and 4 months.
Seasonally adjustment The core data for the NZ Property Report is seasonally adjusted to better represent the core underlying trend of the property market in NZ. In preparing this seasonally adjusted data Realestate.co.nz is grateful for the assistance of the New Zealand Institute of Economic Research (NZIER) who use an X12 ARIMA methodology to calculate seasonally adjusted data