Wednesday, April 24, 2024

Housing recovery spreads to nearly 60% of NZ suburbs

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Over the past 12 months, 52 per cent of Auckland suburbs have seen values rise, and 10 of those have seen increases of at least five per cent. Times photo Wayne Martin

Property values rose in almost three-fifths (58.7 per cent) of New Zealand suburbs – including some east Auckland localities – over the past three months, illustrating the slow and steady spread of the country’s market recovery.

CoreLogic’s NZ’s interactive Mapping the Market tool reveals 549 of the 935 suburbs analysed saw an uptick in median estimated property values in the three months to March. Of the 386 suburbs in decline, only 152 saw falls of one per cent or more since December.

CoreLogic NZ chief property economist Kelvin Davidson highlighted over the three months to March there were 103 suburbs which saw value gains of at least two per cent, with seven up by five per cent or more.

“Four out of the seven fast-riser suburbs currently have median values under $500k. They are Blaketown and Cobden in Grey District, Patea in South Taranaki, and Wellington Central,” he said.

Over the year to March, 27 areas saw values increase by at least five per cent, with 10 of those in Auckland, seven in Wellington, and five in Queenstown.

“Queenstown continues to demonstrate market resilience, with growth in Sunshine Bay (10.6 per cent) a standout example,” Davidson said.

“The presence of Grey District in these lists illustrates its affordable starting point, while Auckland and Wellington fell quickly, so perhaps have more headroom to recover too.”

Auckland
Over the past 12 months, 52 per cent of Auckland suburbs have seen values rise, and 10 of those have seen increases of at least five per cent – including Fairview Heights [North Shore], Somerville, Northpark, Pinehill [East Coast Bays], and East Tamaki.

Herne Bay remains Auckland’s most expensive market with a median value of $3.31 million. Manukau and Auckland Central are the most affordable both with median values less than $600,000.

Property market forecast
Davidson said the data confirms that the recovery phase is spreading to more parts of the country, as mortgage rates top out, employment continues to rise, migration remains high and credit conditions ease. But the trend is not nationwide yet.

“This only reiterates the view that the market’s recovery is unlikely to be a straight line from month to month, or region to region. With mortgage rates still high and affordability stretched in many areas, an underwhelming upturn remains on the cards for 2024,” Davidson said.

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