With the current state of housing in New Zealand, deciding where to buy a house, let alone starting the hunt, is a challenge. Real estate in NZ is more expensive than it has ever been — there’s a lot to consider aside from the price of the house itself.
*The records below are based on the April 2021 monthly data by REINZ.
|Region||Median House Price|
The median house price in Auckland last April reached a new high of $1,125,000 or a 21.6% increase. Sales fell from 3,970 in March to 2,591 in April 2021, down from the high levels shown in March.
The lower number of transactions in April appears to be the result of investors slowing down, especially that buyers rushed to beat the new Government limitations. First-time home buyers are nevertheless active in the market, hoping to take advantage of the few participants at auctions and open houses.
However, properties are still selling fast. In April, auctions accounted for 48.1% of all properties sold, the highest percentage for April since records began. There's a significant increase in the number of developers who are looking for property for new construction.
Here are the varied house prices around Auckland, NZ.
|North Shore City||$1,280,000|
Queenstown is a global tourist centre attracting tourists from across the globe each year. In its economy, tourism plays a vital role, with several employment opportunities linked to tourism, food and lodging.
Queenstown is more expensive than most other regions of NZ given that it’s a tourist resort town. Many of the shops have tourist prices, so you may have to spend more than you're used to on certain occasions.
The rent in the town centre is especially expensive and finding reasonable lodging might be difficult, too. The average weekly rent for a room in the city is $300. However, prices can vary depending on the season. Generally, competition is at its peak during the winter peak tourist season.
The rent in the outer suburbs is often substantially lower — ranges from about $170 to $250 a week.
Residential property is likewise more expensive in Queenstown with a median house price of $1,200,000, which can be at par with properties offered in Auckland.
|Central Otago District||$630, 000|
|Region||Median House Price|
Real Estate in the region is in high demand, with inquiries coming in from all regions across the country. April 2021 has the most sold properties in a month since 2006.
Likewise, investor activity in the West Coast region has remained strong and has not slowed as a result of the government announcement, as it has in other parts of the country.
The number of houses sold in the Southland region fell by 40.2% from March 2021, as first-time buyers and investors took a cautious approach following the government’s announcement in late March, preferring to wait and see how this would affect them. FOMO (fear of missing out), which used to drive a lot of sales, looks to be less of a motivator for buyers.
Since May 2020, the number of properties sold in Southland has been at an all-time low. The Southland REINZ House Price Index grew 19.6% to a record 4,156, indicating that the underlying value of houses in the region is still rising.
Experts believe that the main reason for the increase is the current scarcity of high-quality homes on the market. It's a problem that's been amplified by low-interest rates. Because many investors are currently earning a higher rate of return on their investment properties, they will be more hesitant to sell, especially as house prices continue to rise.
Finding the right home at the right price is possible with proper planning and budgeting. Here are some times to help you in your home buying process.
Read more about it here: Income vs. Housing: How Can Kiwis Find The Right Home?
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