New Zealand’s median house price rose an annual 5.8% in June, with strong growth outside of Auckland, according to the Real Estate Institute.
The national median house price increased to $529,000 in June from $500,000 the same month a year earlier, REINZ said in a statement. Auckland house prices lifted 2.5 percent on the year to $850,000. Prices outside of Auckland climbed 11% to $431,000.
“New Zealand’s property market is showing all the signs of being a two-tier market,” chief executive Bindi Norwell said.
Record migration and low interest rates have bolstered the country’s housing market, prompting the central bank to tighten up lending rules to reduce the risk to the nation’s financial stability.
Chief executive Bindi Norwell said the June data indicates the lending curbs are having a “significant impact in terms of buyers ability to purchase properties.” However, “talk of a decline in prices may be premature with the seasonally adjusted median price trends still rising across many regions in New Zealand. The Auckland market is the most mature in terms of the property cycle, however, at worst, prices in the Auckland region are steady at present.”
Winter and the upcoming general election – scheduled for September – are also impacting the number of properties being sold, she said.
Sales volumes across NZ have continued to drop, with Auckland dropping to 33% compared to June 2016 and nationally they’re down 24.7% for the same period. Excluding Auckland, sales volumes dropped by 20% from a year earlier. The median number of days it took to sell a home increased to 36 days from 31 days in June last year.
The number of properties available for sale rose by 1,895 in June compared to 12 months ago, due to listings in the Auckland region climbing by 3,097 or 57%.
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