THE PROPERTY MARKET IN NEW ZEALAND
New Zealand House Growth – 2021.
The average value of New Zealand residential dwellings increased by 18.4% over the last 12 months, reaching $871,375 in April, according to the CoreLogic House Price Index.
Auckland remains the most expensive housing region in the country with an average value of $1,247,980. That’s up 15.6% compared to a year ago.
Only four of the main urban districts within the Auckland region now have average values below $1 million and they are all in South Auckland – Manukau Central $865,833, Manukau North West $944,101, Papakura $857,037 and Franklin $807,295.
Central Auckland’s eastern district, which includes coastal suburbs such as Kohimarama and St Heliers, remains the most expensive residential district in the country with an average value of $1,840,372.
That’s followed by Coastal North Shore at $1,619,902, and Manukau’s eastern suburbs, which include suburbs such as Howick and Mellons Bay, at $1,421,295.
There are only three NZ districts that have average dwelling values below $300,000 – Buller $247,675, Grey District $271,649 and Waitomo $296,725.
Only five districts posted single digit growth in average values over the 12 months to April – Hauraki in the upper North Island at 6.4%, with the others all in the lower South Island – Queenstown-Lakes 6.3%, Southland 9.5%, Central Otago 9.5% and MacKenzie 4.2%.
“Looking ahead, our expectation for future gains has been tempered, as the profitability of investment property has reduced due to the tax changes around interest deductibility,” CoreLogic head of research Nick Goodall said.
“This will likely mean a slowing of the recent growth rate over the next few months, which will give the Reserve Bank some time to assess whether they need to announce any intention to limit interest-only loans or put a cap on high debt-to-income lending.”