Pukekohe and Franklin the only affordable parts of Auckland

Property

Falling house prices around NZ bring home ownership a step closer for first homes buyers, but they'd still struggle to get on the property ladder in Auckland or Queenstown

28th Jul 17, 9:42am by Greg Ninness

By Greg Ninness

House prices are now falling in most parts of the country making home ownership more affordable for first home buyers in most places, according to interest.co.nz’s June Home Loan Affordability reports.

The reports show that the Real Estate Institute of New Zealand’s lower quartile selling prices have fallen back from their recent peaks in 10 of the 12 regions where affordability is measured, - Northland, Auckland, Waikato, Hawke's Bay, Taranaki, Wellington, Nelson/Marlborough, Canterbury, Otago and Southland, with prices continuing to rise in only two regions - Manawatu/Whanganui and Bay of Plenty.

In Auckland, the lower quartile selling price was $650,000 In June, a decline of 4.4% from the peak of $680,000 set in March.

Within the region the price falls have been greatest on the North Shore where the lower quartile price was $775,000 in June, down 9.6% compared to the peak of $857,500 set in July last year.

There was also a significant fall in south Auckland where the lower quartile price dropped from its peak of $665,000 in May to $625,000 in June, a decline of 6% in a month.

In the central Auckland suburbs the lower quartile price dropped from its peak of $695,669 set in March to $668,500 in June (-3.9%).

In Rodney the lower quartile price dropped from its peak of $728,000 in May to $710,000 in June. And in west Auckland it was back from its peak of $680,500 in August to $672,000 in June.

Prices have also dropped in Franklin on Auckland’s southern rump, where the lower quartile price has fallen back from its peak of $580,000 in January to $525,000 in June.

Separate Home Loan Affordability Reports are available for each of the following regions and cities (click to view).

Central Auckland District

New Plymouth District

Manawatu/Whanganui Region

Palmerston North District

Nelson/Marlborough Region

Nelson City

Canterbury Region

Christchurch District

Timaru District

Otago Region

Dunedin District

Queenstown-Lakes District

Southland Region

Invercargill District

All New Zealand

However Pukekohe has gone against the trend setting a record high of $590,000 in June.

Pukekohe and Franklin the only affordable parts of Auckland

Although the price falls will be welcomed by first home buyers struggling to find a place they can afford, the only parts of Auckland that could be considered affordable for first home buyers are Pukekohe and Franklin.

That’s because the mortgage payments on a home purchased at the lower quartile in either of those districts would be below 40% of the net income of typical first home buyers.

Even after the latest falls in prices, other parts of Auckland remain out of reach for typical first home buyers who would struggle to meet the mortgage payments on a lower quartile-priced home in those areas.

The only other district in the country to face similar affordability issues to Auckland is Queenstown, which is the second most unaffordable place in the country for first home buyers after Auckland’s North Shore.

In both districts, typical first home buyers would need to set aside more than half of their after tax pay each week to make the mortgage payments on homes purchased at the lower quartile price.

People in that situation would likely be at risk of serious financial hardship as interest rates rise, potentially to the point where they could face losing their homes.

But outside Auckland and Queenstown, housing remains well within affordability limits for first home buyers.

Even in other major centres such as Hamilton, Tauranga, Wellington City, Christchurch and Dunedin, lower quartile prices remain low enough that the mortgage payments would be well under 40% of net pay for typical first home buyers in those areas.

Outside of Auckland and Queenstown, lower quartile prices range from $152,000 in Whanganui to $510,000 in Tauranga, and the mortgage payments on homes purchased at those prices would take up between 10.5% and 35.7% of typical first home buyers’ take home pay, well within affordability limits.

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124 Comments

by CJ099 | 28th Jul 17, 9:50am 1501192251

I would still recommend to First Time Buyers to hold off purchasing your home in Auckland for at least six months to a year. The property market here is clearly falling and there's no point in putting yourself at risk of negative equity that could mean that you would loose your home if the banks aren't able to lend to you if prices dropped significantly over the next year which is looking highly likely.

by Trying to build | 28th Jul 17, 9:57am 1501192662

I would definitely take your advice if I were a First Time Buyer, but what about a First Time Builder, do you think the cost of building will come down? I am very confused as to what direction to take

by CJ099 | 28th Jul 17, 10:17am 1501193837

Have to say I'm not sure about whether building costs will come down. Though if building suppliers aren't selling then they'll have to lower their rates. One other area that could improve is the cost of red tape for building instructions could be reduced to help bring down costs.

by Trying to build | 28th Jul 17, 10:29am 1501194568

Thank you, it is a horrible dilemma. Rental and storage costs are a killer, basically it boils down to build now pay a premium and lose the value of my hard earned savings and a large portion of my retirement funds to Fletchers etc or if costs increase not be able to build at all, a huge risk either way. I am not sure which is worse.

by Bobster | 28th Jul 17, 10:34am 1501194858

It's a tough one. As mortgage credit reduces construction costs will fall, but probably a lot more slowly than house prices themselves. The value of your built house will be referenced to the total pool of houses, so if prices fall generally then so will yours regardless of its construction cost.

by Trying to build | 28th Jul 17, 11:04am 1501196649

Thank you. I was thinking along the same lines as I have spoken to quite a few builders, some of them are saying they are booked out until 2020 so are not likely to reduce their prices soon (unless a calamity happens). What has confused me is the amount of houses now being advertised by developers on Trademe at "discounted" prices, so there must be some sort of stress (though I think they are largely developers who have over extended themselves, not your independent builders). In relation to the value of the house being referenced to the total pool of houses, that does not really concern me as I plan on dying there and then passing it on to my children, unless rates increase so much I simply cannot afford the cost of living there. In short I suppose it is similar to the problem of should one fix your mortgage or float it and I will just have to take a punt and wear the consequences. I think the problem is worse for people near the end of their lives than for the younger generation, at least the younger ones have the advantage of time on their hands.

by Bobster | 28th Jul 17, 11:17am 1501197446

Wise words

by Northland Hippy | 28th Jul 17, 11:31am 1501198295

Falling house prices will correct after the election and winter.
We still have record high immigration so the housing crises is going to get worse.
Interest rates are low and long term fixed don't indicate a change.
Even If Winston gets in with a mandate that can cut immigration it will take years for the pressure in the housing system to drop off.
The real question is weather you can build cheaper than buying an existing house?

The wild card is the unfolding collapse of the petro dollar. When this happens USA economy will think the GFC was a picnic. How this will effect house prices is an unknown, If credit dries up like after the GFC house prices will drop despite pressure of market.

by Trying to build | 28th Jul 17, 12:20pm 1501201257

Thank you, I just wanted to check in with all of you who are far more knowledgeable than I. For complicated reasons I am pretty much locked in to building. I feel as if I am jumping off the edge of a cliff, the trouble with that, is the older one gets one's ability to bounce is somewhat reduced.

As you say the wild card is the Petro Dollar, Qatar, OBR risks etc and when one has a large amount of savings in a bank for a building project this can become unnerving.

Plainly put this is doing my head in and I will just have to take a leap of faith, though as an atheist that is not very comforting. LOL. Here goes and thank you for everyone that has helped me

by Bobster | 28th Jul 17, 12:35pm 1501202138

Here we go again.....

Look at rental yields. House prices have little to do with occupier demand or a "housing crisis". Housing demand from owner occupiers do not and will not support prices at these levels in Auckland, which are at severely unaffordable levels for income earners. It's a classic asset price bubble caused by cheap credit and loose lending. The banks have now called time on the credit bubble as they themselves are under pressure from regulators and their own couterparties.

"Petrodollar crash"? Never heard of that one before.

by Laminar | 28th Jul 17, 1:37pm 1501205837

Banks pull the pin on lax credit regularly and there is no evidence from the past to suggest that this alone will cause a major market failure and if it did rate cuts would follow.
Im not sure if youre been sarcastic in reference to the petro dollar crash but for those of us who believe the standard response from central banks to financial distress is rate cuts, the petro dollar failure is ultimately what puts a stop to that game so we watch its progress with interest.

by mfd | 28th Jul 17, 2:08pm 1501207684

As the country has been finding out to its detriment over the last few years, the RBNZ does not set interest rates to control the housing market, but to control inflation. Falling house prices would not affect interest rates unless they also cause inflation to fall.

by linklater01 | 31st Jul 17, 4:34pm 1501475640

Trying to build,

I have not faced your specific dilemma,but having moved here from the UK some years ago,I was faced with a not dissimilar dilemma over the exchange rate. Would the rate improve or get worse? How long should I wait?

My decision was to work out what the best use of my capital was,irrespective of the rate of exchange. I know of one person who refused to bring over a very substantial sum,because he had a fixed view of what he thought the rate should be and this has cost him dearly.
In other words,do what suits your peronal circumstances and move on. I have no idea whther that is at all helpful,but I wish you well.

by NickBOP | 28th Jul 17, 1:06pm 1501204008

Do you need to stay in Auckland? My opinion for what it's worth, with the current rate of new homes being built in Tauranga (specifically Papamoa and Pyes Pa/Tauriko) and the amount of spec homes now listed on Trade Me in those parts I suspect there may be a wee glut coming. Most of these new homes are listed between 600 to 700K. I don't see that there are enough buyers in the area that can actually afford those prices and I think they will keep easing back down. To my mind they are still expensive and I suspect there will be some builders wanting to cut their losses at some point and sell for quite a bit less. Anyway there could be a whole heap of brand new homes available soon as they don't seem to be slowing down on the building front here.

by Bobster | 28th Jul 17, 1:24pm 1501205081

Yes, I saw the rents in that area had spiked so maybe there has been an accomodation demand spike, but the spike was so large that it didn't quite ring true. And yes supply of land is not an issue around Tauranga ie papamoa etc, so given the building going on there I will would not be surprised to see some distress in the Tauranga market.

by Trying to build | 28th Jul 17, 1:36pm 1501205790

I wish we could escape Auckland, however we have a family member in need of highly complex medical attention that is unavailable elsewhere. So to all of you that say just move out of Auckland, sometimes it is impossible

by NickBOP | 30th Jul 17, 8:18am 1501359487

I understand. Just thought it may have been an option. We considered leaving Tauranga ourselves for somewhere cheaper when we wanted to get back into the market and prices were crazy. But with a business & 9 staff to consider it wasn't really an option for us. So I'm not trying to heartless & do understand. We ended up just biding our time & saving till it became easier here again. Best of luck to you.

by Double-GZ | 28th Jul 17, 4:31pm 1501216274

A lot of people NEED to stay in Auckland so that their kids can attend ABGS and EGGS. Not only they need to stay in Auckland but they also need to be in the zone of the schools of their preferred choices.

by sharetrader | 28th Jul 17, 7:07pm 1501225635

you need to check the NZQA stats plenty of schools in NZ have much better results

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11619826

by swapacrate | 28th Jul 17, 7:39pm 1501227592

Its not about results.

Its about patting oneself on the back, with the wink and a nod to each other. Paying more money to live in an area, so you can have a label. Doesnt make sense to most, but to some who measure their lives by labels it does.

by Double-GZ | 28th Jul 17, 7:42pm 1501227760

Yeah it's not about results. It's about the brand and to get into postcode 1050.

by FatFreddy | 28th Jul 17, 7:52pm 1501228338

This must be an Auckland thing. Don't think anyone else has even heard of DGZ or 1050 or the brand.

by Double-GZ | 28th Jul 17, 8:03pm 1501228997

I'm glad you don't know anything about it. It's an ugly side of Auckland...sometimes I feel disgusted by it myself.

by FatFreddy | 28th Jul 17, 8:09pm 1501229359

It sounds like it. But thats why the TV series will be great. I feel like Zach should be Brandon Walsh.

by swapacrate | 28th Jul 17, 8:01pm 1501228875

A nice Tattoo with 1050 will be great.

Maybe even a series 90120, sorry I mean 1050.

by FatFreddy | 28th Jul 17, 8:06pm 1501229204

Starring Double-GZ in a Luke Perry heartthob style role.

by CJ099 | 28th Jul 17, 1:22pm 1501204942

Yes it does sound as though your stuck between a rock and a hard place. Also I can say is try to negotiate costs down as much as possible and use the falling market to your advantage.

I remember when I was in the UK during the GFC, I held off on having any major work done to my property and glad that i did, since refurbishment quotes that I got were basically halved in a year of the crash, since there was very little building work going on to keep them going so builders got a lot more competitive.

by Trying to build | 28th Jul 17, 2:08pm 1501207702

I am thinking along the lines of building the main structure and delaying the interior as long as possible, I think I have a maximum of two years for CCC so hopefully I can spread the risk over that time, then I am in a position of being able to watch what is happening and speed up or slow down the progress depending on what I observe. I know that is very rudimentary, but it is the best strategy I can come up with considering my lack of knowledge.

NB. I have no idea what I am talking about and please don't be unkind.

by CJ099 | 28th Jul 17, 10:06pm 1501236375

Sounds like a good idea. And I assure you that you have more experience of new self builds then most of us. :)

I would use your two year window to your advantage. Look around you, we have perpetual sales on at the moment and in six months time they'll be even more desperate for business. Always negotiate and go for quotes and let them know that your shopping around to get the best price, they'll respect you more for it. :)

by Eco Bird | 29th Jul 17, 6:02am 1501264979

HI Trying to build - I sort of feel what are you are going through as I have been there too at some stage - here is some food for thought that might help you:

You pay a finite price when you buy a house, ... not the case when you build.. building is like endless love and people who get away with just 10% over budget are considered very lucky nowadays - If you plan to build and complete within two years then be prepared to put an extra 20% aside, you will need it for sure.

ATM building costs more, unless you had a section ages ago and costed you very little compared with today's prices, otherwise building an average quality house today ( with all its problems delays and restrictions) is slightly more expensive than your future neighbours unless you are building in a new built neighbourhood ...and the value of your new built will be affected by the prices of your existing neighbours' prices.

I am in the market for a house in Auckland and have investigated new built options , sections, contractor and material prices too.. etc, this isn't the first house I build so I know about the hidden costs and pitfalls ... My conclusion is that buying an existing property is about 10-20% cheaper than similar sized new built ( have to consider new material and quality etc too)

its a tough call, but certainly buying something you like with an eye on improving it will cost less.

Hope this helps and good luck

by RickStrauss | 28th Jul 17, 4:13pm 1501215196

God...it really sucks that our politicians have let things get to this. Sorry for the added difficulty you're facing from this ridiculously bad management of the housing crisis.

by keyo_ | 31st Jul 17, 2:49pm 1501469398

I am in a similar situation. Just trying to get through the design process alone is difficult with all the useless cowboys. My neighbours have had similar issues with their build. My wife wants to buy a tiny house but of course there are ridiculous covenants on our land like everywhere these days. And the building quality here is third world - 90mm framing, aluminium window frames, no central heating - anything over that spec costs a fortune.

by Peri | 28th Jul 17, 10:05am 1501193142

Agree, for a young home buyer, buying now simply means giving your hard-saved equity to the house seller for no value

by Bobster | 28th Jul 17, 10:53am 1501195995

Yep, you are the muggins acting as the exit strategy for an investor

by Bobster | 28th Jul 17, 10:51am 1501195903

Totally agree. I could understand an owner occupier exchanging broadly like for like buying a house in this market. I cannot understand for the life of me why anyone else would buy a house in this market when it was 10x income or even 5 or 6 time outside Auckland and when some sort of decline was expected. Just rent.

I also don't think it makes a difference if outside Auckland affordability is said to be better. The question isn't can I buy now, the question is SHOULD I buy now. And if expectations are for falls, you shouldn't buy.

I don't know who is going to buy all the negative geared and interest only and highly leveraged investment properties that must surely come on the market soon. Without capital gains, those "investments" make no sense.

by Northland Hippy | 28th Jul 17, 11:46am 1501199197

Hi Bobster. I don't think property investors are still in the market, we are happily paying tax on rental profits awaiting the next correction.
Speculators purchase negatively geared rentals in the hope that they get to pay tax on capital gains.
Property investors purchase when rents cover expenses and are patiently awaiting the next correction so that they can feed off the speculators who gambled and got the timing wrong.

by Laminar | 28th Jul 17, 1:59pm 1501207195

While its true imo that investors are not selling but rather well set up for a correction its not true that all/most investors are sitting on neutral or better properties and there isnt a need either. The actual calculation for the profitability of a property is not its profitability today's but rather its perceived profitability in the future. Because rents will rise over time you can buy negatively today and have it be profitable in the future. The effect over time is substantial and allows you to go negative by quite a surprising amount, such that yields of 4% or more are generally rather profitable long term provided capital growth over the period is at least a bit more than inflation. Never the less in my personal experience i havnt seen investors going much below 4.5% but thats because investors generally play it very safe.

by Sluggy | 28th Jul 17, 3:07pm 1501211265

Wow sounds like a winning business plan. Buy something to make a loss in the hope it will make a profit eventually.
Im heading off to the Mclaren dealership now.

by unaha-closp | 28th Jul 17, 3:42pm 1501213347

If only you'd bought that F1 back in 1997.

http://www.autoblog.com/2016/03/25/mclaren-f1-values-auctions/

by Bobster | 28th Jul 17, 3:52pm 1501213965

No one is making money at a 3% yield. If your are covering debt service with debt @ 5% its only because you have substantial equity in a property and the return on that is (absent capital gain) zero. So no, at a 3% yield and and zero or negative capital gains, investment properties (whether high or low keverafed) are actually giving a nil or negative return on equity. Whether or not your have low leverage absent capital gains it's a poor deal. You are effectively giving you'd tenant the benefit of your equity, they get to live in your house and pay you little or no equity return for it.

by Independent_Observer | 29th Jul 17, 12:17am 1501244260

Yup investors have been playing it pretty safe in NZ the last 5 years........(YEAH RIGHT!!!)

by abnz1 | 28th Jul 17, 2:14pm 1501208040

If the down trend has started, it will be a while before it stops.

by Yvil | 28th Jul 17, 3:25pm 1501212303

Tell that to Shameel Equub who just bought his first house...

by Carlos67 | 28th Jul 17, 3:40pm 1501213251

If I took all the advice on here about not buying I would still be renting 15 years later. If your in in for the long haul and your earning plenty of money with a stable job my advice is to always buy. Doesn't matter whats happening in the market or what people think is going to happen and probably won't you will not regret buying when its almost a cert that in 20 years the property prices will have doubled.

by Peri | 28th Jul 17, 3:48pm 1501213731

A price doubling in 20 years is not that remarkable; - equivalent to a 3.5% nominal return each year, or about 1.5% per year after inflation. And how much will you have spent on maintenance? at the least 1.5% per year. So in all not that compelling.

by MisterB | 28th Jul 17, 4:00pm 1501214439

Don't let maths get in the way of a good story.

by Bobster | 28th Jul 17, 3:59pm 1501214390

No one is saying don't buy, but many are certainly saying don't buy NOW. Prices are totally unsustainable at these levels.

by PocketAces | 28th Jul 17, 4:35pm 1501216537

Without foreign money they sure as hell are

by Double-GZ | 28th Jul 17, 4:41pm 1501216875

But when you're reaching retirement age you have to BUY NOW and many locals are choosing to buy into the retirement villages in their own suburb instead of fleeing to the regions. https://www.rawhitiestate.co.nz/

by PaulO | 28th Jul 17, 4:31pm 1501216262

My folks are looking at selling in Auckland and heading for the regions and a cheaper place to retire to. They met with a real estate agent yesterday who suggested they put their place on the market on the weekend of, or before the election. Reason? She says there are a heap of owners waiting to put their house on the market the week after the election. Anyone looking to buy on the Shore is going to have a lot more choice soon. My advice to my parents was to put the place on the market now, consider all offers and get rid of it as fast as they can. Prices are only going one way.

by Houses Overpriced | 28th Jul 17, 9:53am 1501192425

c'mon guys, according to the dysfunctional National party, there is no housing crisis.. the above stats speaks for itself... should FHB's take on so much debt, just because central government claimed there is no issue in sight?

by AK79 | 28th Jul 17, 9:58am 1501192709

Maybe I am an old school Aucklander but Pukekohe and Franklin are not Auckland.

by Gareth Vaughan | 28th Jul 17, 11:13am 1501197227

Agreed!

by swapacrate | 28th Jul 17, 7:55pm 1501228504

Im old school Waiuku person and Franklin is definitely not Auckland, especially, Pukekohe, Waiuku, Tuakau etc. Papakura up was always Auckland to me.

Counties not Auckland.

by Double-GZ | 28th Jul 17, 8:00pm 1501228821

Tuakau and Pukeno are part of Waikato Regional Council. The rest on your list are under Auckland Council. We do consume their rates money.

by swapacrate | 28th Jul 17, 8:04pm 1501229053

You may consume the money, but we beat your rugby team. Plus there is a lot of green grass in between the towns.

by Double-GZ | 28th Jul 17, 8:07pm 1501229220

Franklin and Rodney are our bad cousins, they always complain about Auckland consuming their money and they can't wait to break away.

by swapacrate | 28th Jul 17, 8:15pm 1501229733

Well maybe Auckland does. Maybe it should be split.

Not my area to be fair. My area is hassling the labels, and cheering on Counties, win or lose.

by Double-GZ | 28th Jul 17, 8:18pm 1501229934

Your area is cheering for house price crash, economy collapse, unemployment rate rise to 50% and blood on the streets of Auckland.

by swapacrate | 28th Jul 17, 9:12pm 1501233129

Bit over dramatic.

But house price drop would be good, in line with wage of typical households, not households with two professionals on over 100K and no children.

As for 50% unemployment rate, who would want this?? They even need to work in Franklin believe it or not.

by unaha-closp | 29th Jul 17, 9:55am 1501278932

You think you are consuming their money? No.

Everything Auckland does is about spending money on Rodney and Franklin. Take a cruise out there and see your rates at work.

by Stealth | 28th Jul 17, 10:25am 1501194351

Clearly the property market has peaked and now falling....the high tide has happened now going out. Don't get caught swimming naked.

by Houses Overpriced | 28th Jul 17, 10:33am 1501194837

just a couple of reasons being :
- Overseas money drying up (mainly china) **National claimed that foreigners had no impact on our market
- Speculators staying away, as they are unsure what the election is going to uncover **National claimed that there was no speculation in the Auckland market

by theglc | 28th Jul 17, 3:14pm 1501211672

speculators dont buy in a falling market

by abnz1 | 28th Jul 17, 4:02pm 1501214535

To change the policy of denial, lie and manipulation - one has to go out and Vote.

Vote for change. Anyone but..................

by unaha-closp | 29th Jul 17, 9:59am 1501279184

...Labour.

The market hasn't peaked, Australia and the rest of NZ is still trucking on continuing to boom. Only Auckland is screwed, due to Phil Goff (LAB).

by paashaas | 29th Jul 17, 7:07pm 1501312058

Have I missed anything ? Thought screwing was a Len Brown thing.

by Ocelot | 28th Jul 17, 11:26am 1501197987

"Property ladder" is a real estate propaganda term. It's been overused and people are starting to see through it now. Come up with a new pitch. The reality is it has become a "property treadmill".

by Independent_Observer | 28th Jul 17, 11:33am 1501198403

In every game of ladders there also snakes - but we never hit those in NZ's version of snakes and ladders. 'Everyone wins...!'

by Chairman Moa | 28th Jul 17, 11:40am 1501198842

Came across this listing and if you compare this to a nice 4 bedder in Ponsonby. This house is for sale in the middle of Manhattan and a much better buy for someone from Shanghai. Auckland vs NYC.. ummm

http://www.realtor.com/realestateandhomes-detail/72-E-1st-St_New-York_N…

by RickStrauss | 28th Jul 17, 11:48am 1501199301

But...but...can your kids still attend Auckland Grammar?

by Chairman Moa | 28th Jul 17, 11:58am 1501199936

IMO, only the top 2% of the students benefit from being at Auck Grammar School. If you are an average kid at AGS you will be just another average kid at a very large school.

by Lapun | 28th Jul 17, 12:47pm 1501202829

You don't go to AGS to tell people that you are clever and educated; you go so you can tell people your parents were wealthy.

by Ex Expat | 28th Jul 17, 1:11pm 1501204267

Another newly spawned member - welcome.

by RickStrauss | 28th Jul 17, 4:08pm 1501214939

Wealthy is not going to a public school.

by Double-GZ | 28th Jul 17, 4:18pm 1501215502

Welcome :-)

by Carlos67 | 28th Jul 17, 10:41pm 1501238460

Actually there is more to it than that and its called networking. Basically your mixing with all the parents who are at a level in business that can employ your kids when they leave those schools.

by KH | 29th Jul 17, 9:25am 1501277159

Lol. Most/many folk living in the DGZ are skint. Whatever their inome their mortgage drains their blood. South Island folk by comparison have much more disposable rattling in the pocket.

by Double-GZ | 28th Jul 17, 4:26pm 1501215966

Kids who live in DGZ will tell you that their parents are loaded, but they're actually attending private schools such as Kings, St Kent, Corran, St Cuth, Dio etc etc.

by Ex Expat | 29th Jul 17, 6:57am 1501268260

True. I didn't grow up in Auckland so I was not fussed about the differences between the boys schools, but based on the old girls I've met since living here if I had one I would have sent a daughter to Dio In a heartbeat. Girls can do anything is in their DNA.

by mrp | 28th Jul 17, 12:27pm 1501201628

someone from shanghai is telling you NO

by Laminar | 28th Jul 17, 1:52pm 1501206759

Thats 4.7 million kiwi and for that money you could buy in Remuera with lots of land and a view of Rangitoto. No chance id give that up for NYC lol. Kicking back on the deck with a beer and the kids playing in the yard, BBQ purring away and the wife drinking a mojito, yeah ill take that life.

by Double-GZ | 28th Jul 17, 5:01pm 1501218092

5 Auckland Streets Reserved For The EliteThese famous Auckland streets are some of the most expensive in the country, housing exclusive properties with the price tag to match. https://blog.homes.co.nz/5-auckland-streets-reserved-for-the-elite/

by Chairman Moa | 28th Jul 17, 5:34pm 1501220050

Yeah, if you are in the late 50s (with a nice cardigan). You will fit you right in Remu..

by moa man | 28th Jul 17, 7:13pm 1501226009

Sounds like a case of a green eyed envy monster grizzling.

by swapacrate | 28th Jul 17, 8:11pm 1501229516

There are so many beautiful places in NZ its not funny. Some people do not need to live in particular areas to recognise this.

by Double-GZ | 28th Jul 17, 8:15pm 1501229742

I definitely won't move to Mosgiel. Just watched the news and the whole town is over-run by sewage.

by Tui12 | 28th Jul 17, 12:11pm 1501200713

And what exactly is that based on Moa did you go to Grammar? The reality is an average kid at Grammar is an above average kid at every other school. In my year even the lower classes all got A Bursaries and all went to the best Uni's. Not sure what its like now however with the new breed.

by RickStrauss | 28th Jul 17, 12:29pm 1501201772

I know underachieving putzes from Grammar (and various better schools) and overachievers from run of the mill high schools. I also have friends who have taught in private schools in Auckland, as well as high-decile public schools. Their experience suggests a high number of kids in the private and high-decile schools are underachieving, in part because their parents simply don't participate in their education enough, and haven't since they were wee sprogs.

by Ex Expat | 28th Jul 17, 1:20pm 1501204808

In our Expat days our children attended some very well funded schools, both overseas and locally. One came back to board at Kings and one of the others attended the local school when we repatriated. I can't be definitive about the impact of the relative schooling quality (who can) but I've voted with a local State school education as I can't see the merits of paying big $ to get the same result as what comes free.

by Chairman Moa | 28th Jul 17, 1:58pm 1501207120

Mine went to Grammar before we shifted!
If you want to see result - go to a school that teaches IB instead of the very useful (NOT!) NECA...

by Davo36 | 28th Jul 17, 12:32pm 1501201975

This is a sign of our success isn't it? So many people want to come here our house prices are unaffordable, you can't drive anywhere and the environment is generally under a lot more pressure.

Wahoo!

by unaha-closp | 28th Jul 17, 1:38pm 1501205887

But outside Auckland and Queenstown, housing remains well within affordability limits for first home buyers.

How unsurprising the two regions with the least land availability are the most unaffordable.

The mountains and lake that surround Queenstown are very beautiful, but make it difficult to build.

The flat easily accessible Takanini-Ardmore Plains adjacent to Auckland are virtually ready to use, but Auckland Council forbid building there.

Insurmountable geography and insurmountable council incompetence - same result.

by Tui12 | 28th Jul 17, 1:57pm 1501207071

Gee the sweeping generalisations are coming in thick and fast today!

Grammar has definitely changed now in that you obviously have to be pretty well off to attend the school. In my day it was a selective school in that many of my mates were from all over the city and were selected when applying out of zone. Many from my local area were not selected and have been bitter towards it ever since.

Grammar is not for everyone and its not guaranteed your kid will come out successful if they attend the school but such is life personally Id rather send my kid to a private school nowadays as I believe its better value than living in the ludicrously priced DGZ.

To say that Grammar “only benefits the top 2%” is just a garbage throw away comment as the stats clearly show that the vast majority that go to the school go on to achieve great things and have the best network in the city.

by swapacrate | 28th Jul 17, 8:39pm 1501231183

Im old and I went to Waiuku College, but I have a few friends that went to Grammar, Kings and St Kents. These guys were boarders, and not local, all were good at rugby, cricket and academics.

Its funny the two Grammar guys have sent their kids to different schools, they loved Grammar, but chose different schools. Private schools and catholic schools.

These guys do OK but are your typical down to earth kiwi guys that love rugby that have happened to do OK. I might start calling them 1050's now, after reading this.

by O4 normal | 28th Jul 17, 3:09pm 1501211355

Places like Tauranga are about $300k to $400k for a section and about the same for a house depending on 3 to 4 bdm or rightaway section or area, older houses will be coming down to meet locals affordability I guess and builders will sharpen there pencils and sections a bit cheaper , people with a bit more money, older people will still buy new houses but it'll be a lot slower, AUCKLAND on the other hand with a slow down will put thousands out of work because the distance between new and old houses will be just to great, what's a average new house $1500000, could they come down much? , I bet there's a lot of great older houses done up, I don't know the askers, the masses of people need affordable housing ,city can't grow in population because new building crash or push house prices up so people start building and push up population or make new housing cheaper

by O4 normal | 28th Jul 17, 4:04pm 1501214651

Heaps of kids come from heaps of schools and get in the same universities by great numbers, stop being snobs , it's more the parents

by Tui12 | 28th Jul 17, 4:48pm 1501217315

Yep and "heaps" don't. Grammar does Cambridge by the way not NCEA

by O4 normal | 28th Jul 17, 4:18pm 1501215488

Houses overpriced , if you are a first home buyer why can't you buy a older house, new houses specially in Auckland are normally for the more older and wealthier, in a year you could save over $200k and only waste about $30k in rent . and it's not wasting anything really because buying now means you would be paying a mortgage and in a year you'd hardly pay any principal , of course you would need to believe all the darter about prices dropping, your call

by Ze badge | 28th Jul 17, 4:21pm 1501215715

Auckland and Queenstown also earn 70% of NZ Airbnb income. 10% of Queenstown housing stock is on airbnb. Coincidence?
http://www.infometrics.co.nz/390000-airbnb-guest-nights-auckland-180000…

by Double-GZ | 28th Jul 17, 5:37pm 1501220271

HOW EXPENSIVE IS YOUR SCHOOL ZONE??
https://blog.homes.co.nz/is-buying-a-house-in-double-grammar-zone-worth…

by blue meanie | 28th Jul 17, 9:27pm 1501234074

Who cares?

by CJ099 | 28th Jul 17, 10:32pm 1501237924

Haven't you heard DGZ children are a luxury item these days, Only the wealthy can afford to breed.
I kid you not.

by Eco Bird | 29th Jul 17, 5:13am 1501262013

lol, really??

by CJ099 | 30th Jul 17, 12:16pm 1501373783

You can scoff all you like but the figures are there to show that birthrates are falling in locations where the cost of living is far too high. Here's just one example:-

Bloomberg article: China's Demographic Time Bomb Continues to Tick
https://www.bloomberg.com/news/articles/2017-05-17/china-s-demographic-…

by O4 normal | 28th Jul 17, 4:52pm 1501217544

Paul0 , yeah I'd sell but what is the reason all these people are waiting for after the election they probably don't want to sell anyway or they would now, so it money, greed , worry, , I guess they think if national gets in or maybe with the greens it's keep the house or peters and sell quick , all really stupid the county has corrections about every 10 years and have never stopped a correction, there's probably no need to even set DTI,s because the banks are having to do it anyway , and national want lower prices anyway, DESPITE, sad

by Double-GZ | 28th Jul 17, 4:52pm 1501217575

Humans of Remuera revolt against the Unitary Plan
https://thestandard.org.nz/humans-of-remuera-revolt-against-the-unitary…

by PocketAces | 28th Jul 17, 8:30pm 1501230654

Wemuwewians are wevolting. So what else is news.

by Double-GZ | 28th Jul 17, 8:34pm 1501230856

LOL that's so true. We're horrible people.

by swapacrate | 28th Jul 17, 8:55pm 1501232104

DGZ you cant have it both ways. You even call yourself DGZ, I didnt even know what 1050 was until you brought it up. Its like wearing a big, big brand new gold rolex, louis vuitton bags and gold sun glasses. It screams look at me, but dont judge me please even though I want you to judge me as being loaded.

by Ex Expat | 29th Jul 17, 6:40am 1501267209

We are labelled the Miserables of Kohimarama so Remuera got off lightly. If a label helps keep the Bays uncool with the Ponsonby/Grey Lynn tribe I'll happily accept that moniker.

by Double-GZ | 29th Jul 17, 9:58am 1501279091

LOL should be called 'Miserables of 1071' instead.

by moneyphobe | 28th Jul 17, 9:41pm 1501234890

Interesting site DGZ did you read this one?

https://thestandard.org.nz/the-great-auckland-housing-crash-of-2017/

by Carlos67 | 28th Jul 17, 10:53pm 1501239235

Yes but if you shove that on an exponentially increasing house price curve its a blip, the overall trend is still upwards. In our entire property history in the last 50 years we have yet to see anything major thats resulted in long term price decline or even a plateau thats lasted years. This is not to say it will not happen, but if you had to place a bet on continued long term price increases or the chances of a massive crash and prices staying there which way would you bet ?

by Independent_Observer | 29th Jul 17, 12:13am 1501244000

What about a third option of massive price crash, returning housing to its intrinsic value based on fundamentals - followed by historically slow nominal price growth?

by Independent_Observer | 29th Jul 17, 12:21am 1501244506

If I was Japanese, Spanish, American or Irish which way would I bet based upon experience? Now let me think...

by Noncents | 29th Jul 17, 8:22am 1501273372

Ireland was related to some pretty catastrophic failures in other areas. Were the same thing to happen here, house prices falling would be the least of our issues.

by Bobster | 29th Jul 17, 7:39pm 1501313958

Eh? Ireland's trouble were purely caused by a ridiculous credit and property bubble. It started to deflate from 2007 and then from 2008 post Lehman bros the crash worsened as the banks failed. But property prices had started to decline well prior to Lehmans implosion in September 2008.

by Bobster | 29th Jul 17, 7:40pm 1501314035

In nominal terms or real terms? Are you saying nz house prices are on an ever increasingly upward trajectory in real terms ie ever increasing multiples of income....to infinity and beyond?

by abnz1 | 28th Jul 17, 11:10pm 1501240221

Interesting reading and factual analysis :

https://thestandard.org.nz/category/government-and-politics/

by Nzxonz | 28th Jul 17, 11:33pm 1501241622

Yeah
https://thestandard.org.nz/paula-bennett-gets-owned-by-phil-twyford-in-…

by Eco Bird | 29th Jul 17, 5:29am 1501262969

LOL, A propaganda trumpet for trade union movement activists ... no wonder the title is so different from the content ...! Geez

by abnz1 | 29th Jul 17, 10:14am 1501280060

I understand but when you have the whole media with opposite propaganda so not bad to have both views.

by waymad | 29th Jul 17, 10:36am 1501281381

What are these 'unions' of which you speak. I've worked in IT for over two decades and never encountered such a beast. Are they things or do only the fossil traces in the rocks remain?