Median residential property values increased by at least $100,000 in 800 suburbs around the country in 2021, according to the latest figures from property data company CoreLogic.
The company tracks property values in 966 suburbs throughout Aotearoa, and all of them showed substantial increases in median values last year, with just 166 having value gains that were under $100,000.
In dollar terms the biggest increases were in the central Auckland suburbs of Herne Bay and in Arrowtown, Jacks Point and Lake Hawea in the Queenstown-Lakes District, all of which had annual value increases of more than $550,000.
Rununga in the Grey District of the South Island had the lowest annual increase of $29,500.
Herne Bay also retained it's position as the country's most expensive suburb with a median value of $3.605 million, with nearby St Mary's Bay breaking through the $3 million mark for the first time to become the country's second most expensive suburb.
In Auckland there are now 28 suburbs where the median values are $2 million or more and 153 with median values of $1-2 million.
Hamilton has six suburbs with median values of $1 million or more, while Wellington has 67 million dollar suburbs, Christchurch has 14 and Dunedin has three.
However the big increases in property values that occurred last year are not expected to continue.
"New Zealand's housing market is due for a slow down this year as affordability bites, mortgage rates rise and lending rules tighten," CoreLogic's Chief Property Economist Kelvin Davidson said.
"And with more choice on the market for buyers, we would expect a dampening of price pressures," he said.
You can read CoreLogic's full report here.
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60 Comments
Not only that, but have you seen what people have to pay for a 20 year old LandCruiser with 400,000 ks on the clock.
10 years ago we paid $2000 for something like that. How much is it now?
Anyway, I think there must be a secret tunnel to gold somewhere that the rich folks are not sharing. Time to get back to pimping up my van.
They're about 40 grand. You can get a 30 year old Nissan Patrol for 30, so that's a good deal.
Absurd. Gotta add another few thousands for the Patrol budget for the purpose of buying spare engine oils all the time. Every other Patrol I see is smoky!
The GQ Patrols ("Safari" in NZ) in particular are iconic, products of a bygone era where manufacturers actually used to take pride in the quality of their vehicles. There's a reason they hold their value so well; you can't buy trucks built like that anymore.
Absurd how much those Landcruiser 70 series go for. No wonder they're still making them (since 1984!) albiet with small changes here and there and one facelift.
They are one of the few twin live axle 4wd's left in production, hence their popularity.
When money gets concentrated in the hands of a few and depreciating a high speed, you have to find a way to do something with it like buying Art, rare Bordeaux, QT bunkers and old cars
One million gets you a choice cryptopunk, probably if you ask politely https://www.share3works.com/market/larvalabs.html
Shouldn't price be used instead of word value?
Totally agree with you!
No, it's values. They use recent sales prices to estimate the likely value of every property in the suburb. So its possible to have a suburb with a value of $2M but nothing actually sold for $2M last year....
So the data reported here is "values" and they / the media shouldn't be using the two words interchangeably.
The value doesn't change the price does.
And yet there are no sales prices in this article....
"price is what you pay, value is what you get"
"The value of my estate is...."
There are different definitions and uses of "value". In this case its also associated with "valuation", as the suburb values are calculated by applying the sales price to capital values to calculate an average current capital value.
Challenge with using the word "price" is that the public can assume that these are actual transactions, not asking prices or sales prices.
Intereting we agree but i see it the other way as when using value in this case it sounds like the value or valuation is based on what the house is acctualy worth. But it is just an estimate base on whatevers someone was able to sign up for and borrow in the same suburb.
I think Price estimate or something similar would be best
can we compromise on "estimated value"...? Estimated is the key regardless but certainly articles using prices and values interchangably can be confusing. Like when realestate or trademe put out releases saying "prices hit record levels" when they are talking about calculated asking prices (most of which are agent's estimate price ranges).
Soon Auckland houses will become invaluable. And Priceless.
Its called Neoliberalism, all politicians worship it and its all rigged to make the rich richer.
Wealth of world's 10 richest men doubled in pandemic, Oxfam says
Rich people usually get richer, unless they bankroll their partner into a clothing retail business, or get divorced or something.
How much is rich for you painter ?
Don't need to work no more?
With this definition you could say the beggar next door is rich, i was hoping for a number
Rich to me would be living the lifestyle you wanted without the need to go to work. If a homeless person is happy enough, yeah I'd say they're richer than some middle manager paying a mortgage in a high intensity subdivision spending 2hrs a day commuting. A number becomes a relative thing.
I dunno, net worth of 5-10 million?
Ok thanks
It's not called neoliberalism. Here are some things that are not neoliberalism:
- Preventing growth beyond the boundary of a city
- Imposing constraints on what people can build on their own land
- Letting nimbys veto development
- Subsidising first home buyers (Kiwibuild, first home grants etc.)
- Bailing out the middle class via monetary policy
- Attempting to guide the market towards perpetual growth (PM: "people expect sustained growth")
- Encouraging first home buyers to take out huge debt (PM: the price isn't the problem, it's getting into the market)
- Failing to impose a land-tax (a very neoliberal policy)
And yes, politicians do love these things, because they are incredibly popular with the majority of the home owning public
Great comment.
This doesn't give us very timely data, REINZ data out tomorrow (I think?) will be more telling about what's happening most recently (December 21)
An aunt (single) retired about 10 years ago with a net worth of close to $1 million. She's made far more in retirement than she could have dreamed in her working life.
Check out Spain, the average pension is around 30% higher than the average wage.
Some people think about retirement as cashing up and drawing down on that sum from time to time. But retirement should be a time of continual investment, using the knowledge acquired getting to that point.
An individual net worth over $1million makes you rich in this country. You would be in the top 5% of the population 10 years ago for sure. Recent house price gains have really pushed up the limit, probably more like $1.5million now. I was pretty shocked how "low" the thresholds were from an NZ Herald article and it made it to the TV news as well. The numbers were quite shocking, the bottom 10% have either zero net wealth or are actually negative.
If your only substantial wealth is the paper value of a lousy New Zealand house, you ain't rich.
..... for much longer.
Many young graduates have negative wealth but a decent lifestyle and great prospects. Someone recently retired in good health, renting with say $200,000 may need to worry.
Most house collectors wouldn't get out of bed for $200k in monopoly money land.
About one in three own no property? Possibly less for retirees. But still numerous upright Kiwis who worked hard all their lives but saved little because of poor remuneration, health and family issues. NZ super is very generous by international standards but you cannot enjoy retirement without savings. They are needed so you can visit family and attend funerals of friends in distant towns or maintain your gym membership, etc - those little things that make life worthwhile.
Simple supply and demand right... values can't go down. Hilarious that there's people who still think this is the case and was the reason for the dramatic price increase...
The value of the currency can go down for sure. People will cotton on with time.
When retails banks use newly created money to fund the purchase of old [existing] houses, of course property values will dramatically increase!
It's very obvious.
Grant Roberston and Adrian Orr teaching a masterclass on how to run a country into the ground.
It must be hard for someone who once was respected to have failed so dramatically and in full public view.
No failure, they knew what there were doing. They succeeded
House Prices have in a way become TBTF in New Zealand. No Government would like that market to crash.
Not surprised..when governor of reserve bank and Prime Minister of the country are out to promote and support the ever growing house price....what else......
They really have decimated the worth of the NZD haven't they. Who would have guessed that spraying billions of dollars around the country would have lead to asset price increases, not the government or RBNZ, they are still investigating (to no avail..) the effects of lose monetary policy on things like said asset prices and inequality. Fiat currency, the ultimate rug pull. It has just been so slow until now that no one has seen it.
Checks currency rates:
• 68 cents USD
• 60 cents Euro
• 50 pence
• 94 cents AUD
Yeah she is right in the toilet….. nah you are just saying stuff.
NZ has already started raising rates though, the others haven't. What do you think happens when they do?
Sick.
Probably a sign of things to come. $50k under recent CV and $150k under Homes.co.nz estimate. I think they REALLY want to sell don't you? https://homes.co.nz/address/wellington/newlands/7c-cheyne-walk/4pVr8?se…
It’s a two bedroom looks to be cross lease or apartment in the back of newlands. 800,000 Is crazy money.
There is a 2 bedroom place on awarua street, been on the market for months. They aren’t even keeping the lawn under control.
This one
Love the description "surrounded by quality homes"
Very very apt when they are right on your doorstep
Yeah, such an urgent sale they didn't have time to proof read the ad: "Price Reduced! Go to go!"
Here is the place on the QV site:
https://www.qv.co.nz/property-search/property-details/3130266/
It says "No sale on record".
Go for it, Gen X, steal this gem for 720. You deserve a foot on the ladder. Haha!
The boom of all booms.
Maybe the NZ dollar has been devalued by 30% due to money printing (state sanctioned forgery) rather than the "value" of property increasing by 30% ?
More like 40% or more
How much of this site's traffic comes from clickbait articles about property?
Articles about housing dominated 9 out of top 10 in 2021 on here. There is nothing else that gets the comments section pumping like it. Was thinking the other day that the whole "Net Wealth" of individual New Zealanders could do with an update to see the trend. My guess would be its getting worse with way more at the bottom and the same few at the top racing away with the loot.
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