REINZ report says sales of million dollar-plus properties have declined in Auckland but risen in most other parts of the country

REINZ report says sales of million dollar-plus properties have declined in Auckland but risen in most other parts of the country

There are fewer homes being sold for more than $1 million in Auckland, but more in most other parts of the country, according to the Real Estate Institute of NZ.

The REINZ's latest Million Dollar Price Report shows that 4075 residential properties in Auckland were sold for more than $1 million in the first six months of this year, down 1.9% compared to the first half of last year.

There were even bigger declines in the number of multi-million dollar properties sold, with 194 Auckland properties selling selling for more than $3 million in the first half of the year, down 8.5% compared to the first half of last year, while 41 properties sold for more than $5 million, down 18% compared to the same period of last year.

However the number of properties selling for more than $1 million was up in most other parts of the country, with Auckland, Tasman and Southland the only regions to have sold fewer $1 million-plus properties in the first half of this year compared to last year.

Nationally, 5438 residential properties sold for more than $1 million in the first half of this year, up 4.2% compared to the same period of last year.

And if the Auckland figures were excluded, 1363 properties in the rest of the country were sold for more than $1 million, up 27.9% on the same period of last year.

Outside of Auckland, the region with the most million dollar-plus sales was Wellington with 382 $1 million-plus sales, which was up 43.1% on the same period of last year. 

That was followed by Otago (which includes Queenstown), where 232 homes were sold for more than $1 million in the first half of the year, up 26.8% on last year, Bay of Plenty, 213 $1 million-plus sales, (+21%), Canterbury 178 (+5.3%), and Waikato 177 (+28.3%).

Outside of Auckland only 29 properties sold for more than $3 million in the first six months of this year (+16%) and just five sold for more than $5 million, which was unchanged from a year ago.

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Andrewj. I think the Carpenters is the most appropriate music to accompany reading that article.

https://www.youtube.com/watch?v=__VQX2Xn7tI

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If that isnt a sign of a sliding Auckland market I dont know what is

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Yup sure is. Commentators TTP and Eco Bird both argued that support was only dwindling on Auckland's lower quartile and poorly maintained. This report suggests there's certainly weakness in leafy neighbourhood too. Foreign based buyers ban to come yet!

Yeah but not the case outside Auckland, prices going to heaven outside auks ...there are plenty of reasons for that and Aucklanders wanting more freedom and a better lifestyle for less money is just one

Time for some more Kenny Rogers.

https://www.youtube.com/watch?v=gDwCMxPwJ_4

What a depressing Friday you are making it interest.co.
Fewer $1m properties sold, new properties listings icy, CU splits, Economy in transition (downturn), QV's national average price drop, If Trump ruled Venice, peter's performance reinforced his importance, ANZ trims deposits rates, you delay you pay.
Are you guys hung over?
Or is it that the economy and house prices aren't as bright as they were?
Hope you have a party to go to Saturday night.

we should be rejoicing that our $ can buy more house. Oh and isn't it Thursday? Tomorrow has even more good news.

Hi Andrew,

I've often wondered why so many here take such delight in the prospect of economic recession and housing market collapse. Your comment sheds some light on this question - you think it will enable you to purchase a house for cheap. This, combined with property envy, explains this somewhat perverse perspective.

Never mind that the banks won't be lending and you'll have more serious matters, such as job security, to worry about.

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Let me enlighten you. It has something to do with the fact that for the last 3-4 years we have been force fed by all and sundry that being a specuvestor is the best thing since sliced bread!!!!!!!! If you cannot afford to be one, then rent from one, and help him get even richer!!!!!! On top of this, we were told to give up everything except working and paying rent/taxes!!!!

Do you understand why we are P!$T0FF!!!!

Perhaps old Ramaphosa is onto something with his expropriation without compensation. One way to level the playing field in Auckland.

I'd hazard a guess Andrew (like a lot of commentators here) already owns assets. I can't speak for anyone else but at this point I'd be quite happy for this idiotic bubble to deflate because it's going to be significantly messier when it inevitably pops if it continues.

yes I too own ridiculously over inflated assets, based on wages and earning potential.

Plutocracy,

"already own assets" What do you mean? Car, couch, boat? We're talking about houses here, so if you mean houses why not say so? Is it a dirty word now?

Sorry I never thought of my car, boat, couch as assets, I see them as liabilities. My assets are house, cottage and land.

Are you saying you own 1 house?

Come on BLSH, don't be obtuse. You know exactly what I'm saying. I was referring to either a house, farm, land, a business etc. Andrew kindly appears to have already clarified the definition for you.

Are you saying you own one house?

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Over the last decade there has been a significant reduction in the value of a dollar when it comes to our major purchase, our home. We are not richer when houses cost more we are poorer because we have to work longer to save and pay our mortgage, lately a lot longer, and higher rents too.
The reduction in the value of our wages has hurt a huge portion of our society, it needs correcting.
This situation should never have been allowed to happen, unearned income, mis allocation of resources, huge debts in non productive assets are going to be very destructive during the corrective stage of the bubble.

Sorry Andrewj.
Yes, sorry; Just felt like a Friday.

And oh, yes; I just got back in and I note that the news items haven't improved any what.

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If media is with negative news today than tomoorrow will have positive news.

Will be interesting to see if the Labour government actually passes the bill by next week - Which is possible and though the minister had promised in June that the bill will be a law by July - Still if they do it in August will be a thumps up for them OR as many are feeling that government is having cold feet so may try to delay the process.

Wait and Watch.

Agreed. Will be esential to their chances of staying in the Goverment benches. Wait and see indeed.

For someone to be buying a house in the +1m bracket they probably need to be selling their existing homes in the tiers below that. But due to a shortage of bankable FHB's there is a lack of liquidity in the housing market. So many new dwellings under construction in Auckland now. Forget Kiwibuild. I think government policy for 2019 and 2020 will be about creatively financing people into houses that already exist but they can't afford under existing bank lending regimes.

Things must be bad if the mainstream media have now cottoned on! How long will our press try to blinker the public?

https://www.bloomberg.com/news/articles/2018-07-31/are-house-prices-fall...

Cashed up Aucklanders, having sold their 3 bedroom house in Glenfield back in 2016 to a sucker investor, now buying a $1M+ slice of paradise in the regions perhaps?

Could be. Higher end is more of a barometer as few can afford the price and it fluctuated between boom and bust markets more. Could be $4m in a boom and $1.5m in a bust. Most can afford neither.

Suspect the asking prices of $6m plus will have to become something far far less.

Auckland property market going downhill? Little doubt on the direction.The question is only whether the descent is via the stairs or elevator.

Or third floor window.

Lol, funniest comment so far..

You forgot to mention about all those hanging onto their dear asset at which point do they let go.. at the 10th floor and risk dying from fractured bones or when it reaches rock bottom, in which case most would prefer to be dead...

Jealousy - a sign of insecurity.

Lol, I can feel your heart pounding hard.. hope you have your life jacket..

Again.. you lot can't face facts and come back with a stupid comment

Lacking empathy and greed - a sign of narcissism

Gordon Gekko: Greed, for lack of a better word, is good.

The latest June quarter real estate sales figures from Devonport-Belmont-Bayswater show an upswing in the average sales price compared with the June 2017 quarter. IIRC 60 properties sold in the area. Also I had a look at the top 10 sales achieved compared to the 2017 RV, sales were on average 8.4% above RV. NONE of the top 10 were below RV.
Now I am not pushing ideological baggage here unlike so many of the "contributors", I am just reporting on information pushed through my letterbox by a Harcourts agent. I have lived through four property cycles in Auckland, and fully expect another as night follows day.

Sounded interesting until the acknowledgement of “information pushed through my letterbox by a Harcourt's agent” and then you lost me.
Anybahoo – I have floated in and out of Auckland for probably longer than most – and seen all manner of booms, busts and cycles.
The ingredients in this one just feel a little different from previous – the pressures on the upside have been quite formidable over the past few years – some of these pressures being rather opaque and having little relationship with local conditions and market considerations.
However, at the moment many of those pressures are either gradually abating or being removed in total – this must surely have an impact.
I think a correction this time may be somewhat removed from the norm and potentially be far more eventful than what we have known in the past.
Or not….

Overseas buyer ban?

Will the government implement this? Seems they are hoping we all forgot?

Probably not anytime soon.

Oh because introducing a new law that affects international relationships is so easy?

Introducing laws (unless done by dictatorship or executive order) are notoriously long winded and bureaucratic processes. And for good reason. Citizens wouldn't want hasty and ill thought out laws rushed through for political reasons. This does happen obviously, but it's much better for there to be a dotting of i and crossing of t's.

It has passed the committee of whole house..

Next is the third reading.. and then final stretch home.. bye bye..

http://www.chapmantripp.com/publications/overseas-investment-bill-enters...

Apparently Queenstown still needs all the help it can get…..

http://www.scoop.co.nz/stories/PA1808/S00018/national-shows-its-true-col...

Awesome. There were a few commentators over the past few days panicking because it was the end of July and no news on the bill so they assumed it was being delayed and diluted.

Overpriced Houses, with the passing of the bill, now we can get back to 2011 again when houses were cheap, oh no that's right, in 2011 you said they were overpriced. Damn!

"The Bill, ... is expected to begin the committee stages ... this week"

I think "begin the committee" is quite different from "passed the committee" stage wouldn't You say? You could still be waiting until 2019 before the committee is finished so stop holding your breath

Hahaha, houses were cheap in 1992...."NOPE".....1987? 1971?

Exactly! One day in 20 years will fhb Neve look back and say "if only I was born 20 years earlier?!"

If neve gets to buy a house at a multiple of 3.5 or 4 times her salary, which i think is pretty much where Auckland has historically been, she will look back in incredulilty at the time when the country was afflicted by a property bubble and an outbreak of national property hysteria which meant that people would buy a house worth a multiple of 10x their salary. She will think those people must have been off their rockers and count her blessings she was not born 20 years earlier. She will quite rightly think she dodged a bullet.

You need to do a financial literacy course

If bobster you were able to buy atm a2 milk at 25 times earnings instead of the current 51.58 then would you take it, of course. So how can you justify 3.5 or 4 x salary? Auckland houses are priced about right when the rental yield is 3 to 4 percent or so at the moment. The houses are more rock solid and less risk than a2 milk shares which swing wildy in a broad range between 14 dollars and 10 dollars per share. I pity you if you bought at 14 dollars but in ten years they may be valued at 140 dollars who knows. All the stupid answers that you come out with, ha!

The long term average for Auckland yields is around 5 or 6% I think. Current yields of 2%ish in central Auckland are hopelessly inadequate, absent capital gain return on equity is zero or negative. Yields and prices are far from “about right”. The rest of your comments are gibberish, just for a change

Gibberish is saying future prices will return to historical levels. Have a good night.

And where is it written that the ratio of prices to incomes and yields will hereafter permanently depart from their long term averages? Nominal prices are not the issue, the issue is the relationship of those prices to (say) incomes. If an average buyer tomorrow pays a price ($1,000,000) that is 10x average income ($100,000), and a buyer in 20 years time pays a price ($1,250,000) that is 5x average income at that time ($250,00), who got the better deal? You are constantly misusing nominal and real values, you are dazzled by the former and have no awareness of the latter.

Gee you talk tripe Bobster. Go to bed and get some sleep right now and give your brain a rest and I will give you the reason for my answer in the morning. As to the answer of who got the best deal, the first guys/girls by far

Like I said, it is the first average buyers, even if you assume there was no capital gain over the period. They are a helluva lot better off than ones who chose not to buy and stay renting. The first buyer chose to kick out the landlord, so they built up vast amounts of equity using the money they would have paid in rent. If they had kids, the kids got a family home to grow up in. The non-buyers would have to move any times over the 20 years and if they also had a family then it's quite expensive and time-consuming. It's not all about the money.

Since NZ Lags the world in many instances, I cant help to think that we are at the start of the NZ GFC. We were very fortunate for the Chch Earth quakes keeping us employed while National used the GFC as an excuse not to spend any money and keep the ledger in the black. now Labour has jumped onto the bandwagon and using National as an excuse to fix the lack of expenditure in just about any area possible including exhorbitant wages, money to the Pacific, fixing the housing crises, roading, ETC. The poor-middle class end user is paying for all of this as well as being kept out of houses. I'm not against the improvements but the pace it is being done at- a recipe for disaster!

maybe we should suggest they change the name of the party to 'InterNational'

From a buyer's point of view, I am finding that the majority of homes available for sale are $1m+ on the North Shore, East Auckland and Central Auckland. Not just over $1m, but well over from 1.3 upwards. Homes under $1m are few and far between.

South and west may be more in your price range. I grew up out west and it was all good.

But do those houses make up the majority of houses on offer in Auckland? What about the houses that actually manage to sell?