June 2019 Newsletter

 

The number of homes sold in New Zealand in April 2019 was 5,800 (6,500 April 2018) the lowest number for the past five years.

In the Auckland region the median price has not changed for the past couple of years staying at approximately $850,000 and with it currently taking 40 days on average to sell a home and 29 weeks of inventory available the median price is unlikely to move upwards in the near future.

Hamilton’s median price is unchanged from April 2018.

Wellington’s median price is about $730,000, approximately the same as a year ago.

In Christchurch City the median price is $470,000 versus $447,000 in April 2018 with a low number of sales (444). The median price does not reflect what we are hearing that some values are going down in Christchurch.

Locally, Dunedin City’s median price as of April 2019 is $439,000 versus $400,000 in April 2018, which would reflect what we are seeing.

In Queenstown the median of $950,000 is the same as a year ago with only 63 sales versus 90 the previous year.

The main centres seem to have stable prices at best with most thinking they will fall before they rise again.

In Dunedin there are historic low numbers of homes on the market, so competition for more should help values increasing.

John Cutler

Principal

 

There are historic low levels of homes on the market at present. In a normal market, our company would have approximately 100 houses or sections to sell but at present we have about 20.

There is a common belief that winter is not a good time to sell a home but unless the property is compromised by sun then it’s a good time to sell before more properties come on the market in the spring.

If you know of anyone thinking of selling please give me a call and I can assure you I will work very hard to get the best possible result.

Regards,

Steve Croy

Property Consultant

 

 

Letting is well and truly underway in the student area for 2020 with first years rushing to sign flats On Castle, Leith and Howe Street for next year, while the students that are currently in their second year are ready to sign flats around Queen, George and Park Street (now known as the 3rd year area).

Larger groups of 3rd, 4th and 5th year students are also getting themselves organised early as they know there are a limited supply of 8+ bedroom flats available.

There’s still a limited supply of high quality flats so those places are seeing rent increases again for 2020, while flats that haven’t had any improvements made for quite some time are likely to stay at the same rate while also attracting less desirable tenants.

Outside of the student market things are still crazy with a shortage of housing continuing to drive rents up and this trend is only going to continue with the hospital re-build.  The majority of tenants in properties we manage are renewing their tenancies for another 12 months at increased rents and when a rental property actually makes it to the market; we’re receiving multiple enquiries and applications within a few days.  It’s very unlikely to see a rental property advertised for longer than two weeks.

Matt Cutler

Managing Director

 

Useful links:

REINZ Monthly Property Report

ANZ Research- NZ Property Focus, The $574,000 question