Source: MIL-OSI Submissions
Source: CoreLogic NZ Weekly Property Pulse with Kelvin Davidson
Which suburbs are driving Auckland’s rebound?
The CoreLogic Suburb Scorecard shows that the tightening in available listings across Auckland has been clear in suburbs such as Otara and Stanley Point. Meanwhile, days to sell has dropped in suburbs such as Glen Eden and Otahuhu. The overall message from these geographically granular indicators is that property values look set to continue to rise in many parts of Auckland for the foreseeable future. However, stretched affordability and strong construction activity will be long-term restraints.
CoreLogic Senior Property Economist Kelvin Davidson writes:
Auckland’s residential property market has clearly turned a corner in the past 3-6 months. After seeing average property values fall by about 3% from peak ($1,055,831 in March 2018) to trough ($1,025,193 in August 2019), the rebound has now seen them rise to a new high of $1,057,556 in February. This has come on the back of increased buyer confidence, rising sales activity, falling listings, and falling days to sell. In short, more buyers are competing for a smaller pool of available properties for sale, which is creating a sense of urgency and supporting upwards pressure on prices.
As the first chart shows, the previous falls in values were largely concentrated in Auckland City and the North Shore, with more gentle declines in Rodney, Manukau, and Waitakere. The flipside is that Auckland City and the North Shore have now recovered the fastest – this can be seen in the second chart (i.e. the suburb map), with plenty of red shading through the central city and to the north. That said, there are still parts of Auckland where values are lower than a year ago (blue shading), and these tend to be pricier suburbs – such as Parnell, Mission Bay, St Heliers, Campbells Bay, and Takapuna.