Residential Market - Total Value Of Sales On Rise

Residential Property Market - Total Value Of Sales On Rise

Residential property statistics for April 2001, released today by the Real Estate Institute of New Zealand, show both residential property values and the total value of sales nationwide have improved from March 2001, while residential sales have slightly eased.

The total value of sales nationwide rose from $1,394,271,191 for March 2001 to $1,423,745,699 in April 2001,and compared to $1,106,697,099 in April 2000, according to Rex Hadley, National President of the Institute.

Mr Hadley said, “Twelve months ago many New Zealander’s lacked confidence in the country’s economic direction and effectively ‘sat on their hands’. More recently, factors such as falling interest rates and improved employment figures have encouraged homebuyers - not only to reenter the market, but also to increase their level of financial commitment to residential property by purchasing homes of greater value than they would have considered previously.

“Thus, the amount New Zealanders are willing to invest in residential property has grown considerably from a year ago, and illustrates the very basic New Zealand belief in home ownership. Despite attempts by some market commentators to convert homeowners to other forms of investment, New Zealanders seem steadfastly committed to choosing their own home as their primary investment.”

The national median sales price rose $4,200 to $178,000 in April, compared to the $173,800 recorded in March. Property values also compared favourably with April 2000, which recorded a median sales price of $177,000.

The median sale price for seven of the eleven regions rose on a month-to-month basis, namely; Northland, Manawatu/Wanganui, Waikato/BOP/Gisborne, Taranaki, Wellington, Southland and Otago, the increases ranging between $1,250 and $8,000. Those regions easing on month-to-month comparison were Hawkes Bay, Nelson/Marlborough and Canterbury/Westland, while Auckland property values remained stable at $248,500 for both March and April 2001.

On a year-to-year basis, the median sale price rose for six of the eleven regions, by between $1,250 and $8,000, the regions being; Auckland, Hawkes Bay, Manawatu/Wanganui, Waikato/BOP/Gisborne Wellington and Nelson/Marlborough. Those regions easing on year-to-year comparison were Northland, Taranaki, Canterbury/Westland, Southland and Otago, which eased by between $750 and $7,500.

The national sales volume for April 2001 was 6,506, easing slightly from the 6,559 sales in March but well improved from the 5,238 homes changing hands in April 2000.

Mr Hadley said, "March is traditionally one of the most active months for real estate transactions and 2001 is no different. It was always unlikely that April would achieve a similar level of sales. In saying that, there was only an easing of 153 transactions between the two months and in comparison to the same month last year, transactions have increased by over 1,200 sales.

“Such a high level of improvement over last years sales volume bodes well for the residential housing market in 2001, and demonstrate the stimulating influence easing mortgage interest rates have had on the residential market.”

Section activity and median section price decreased with 487 sections changing hands at a median price of $78,000, compared to 574 sections sold during March at the median price of $80,000.

-ENDS-

Regional highlights:

NORTHLAND

A total of 164 homes changed hands in Northland, compared to 177 in March. The median price for the area was $150,000, up from the $146,500 recorded in the previous month and down from the $157,000 for April last year, when 142 homes were sold.

AUCKLAND

In Auckland, 2,360 home settlements were recorded during April, up on both the 2,060 recorded in March and the 1,782 homes that changed hands in April 2000. The median price for the region was consistent for April and March at $248,500, and was improved from the $242,000 recorded for April 2000.

On the North Shore, the median price rose to $276,000 for April from both the $265,000 for March and the $262,000 recorded in April 2000. Home sales rose from both the 348 in April 2000 and the 353 sales in March to 515 in April 2001.

A total of 222 homes were sold in Waitakere City, down from both the 265 recorded last month and the 240 sales recorded last April. The median price was $183,500, down on both the $205,000 recorded in March and the $210,000 for April 2000.

In Auckland City 879 homes changed hands, up from both the 824 sales recorded in March and the 632 sales recorded in April 2000. The median price of $275,000 was down on both the $289,500 recorded for March and the $280,000 recorded twelve months ago.

Home sales and the median sale price rose in Manukau City, with 439 homes changing hands at a median price of $237,500. This compared with 376 sales and a median price of $235,000 in March and 316 sales recorded last April at a median price of $222,500.

In the Papakura district, 55 homes changed hands, compared to 57 in March and 44 in the same month last year. The median price of $188,000 was down on the $204,500 recorded in March and up on the $185,750 for April 2000.

A total of 2,110 home settlements were recorded in Metropolitan Auckland, up from both the 1,875 in March and the 1,580 recorded for the same month last year. The median price of $252,500 was up on the $252,000 recorded for March 2001 and the 249,000 recorded for April 2000.

WAIKATO/BAY OF PLENTY/GISBORNE

Sales rose in the Waikato/Bay of Plenty/Gisborne region with 944 homes changing hands, compared to 895 in March. The median price was $165,000, compared with $160,000 in March and $157,000 in April 2000 when 734 homes changed hands.

HAWKE’S BAY

The sales volume and median price fell in April with a total of 185 homes changing hands at a median price of $128,000, compared to $130,000 and 300 sales in March. This compared to 185 sales and a median price of $125,000 a year ago.

MANAWATU/WANGANUI

The sales volume in the region rose on both a month to month and year to year basis with 321 home settlements recorded in April compared to 311 in March and 261 in April last year. The median price of $109,000 was up on the $106,000 of the previous month and down on the $100,750 recorded in April 2000.

TARANAKI

Sales volume rose on a month to month basis with 164 homes changing hands compared to 156 in March. The median price rose to $106,500 for April compared to $105,000 for March. The sales volume for April 2000 was $108,000 when 125 homes were sold.

WELLINGTON

The median price in the Wellington region rose to $195,000 from the $190,000 recorded in both March 2001 and April 2000. The sales volume fell on the previous month but rose year to year comparison, from 974 recorded sales in March to 896 homes in April 2001, and compared to 834 sales in the same month last year.

NELSON/MARLBOROUGH

Sales volumes fell in April with 221 homes sold in the Nelson/Marlborough area, compared to 272 sales in March. The median price of $147,500 was down on the $150,000 recorded in March, and improved on the $146,250 recorded last April when 1,993 homes were sold.

CANTERBURY/WESTLAND

The median price fell in the Canterbury region during to $135,000 from both the $149,000 recorded in March, and the $140,000 recorded in April 2000. A total of 701 home settlements were recorded, down on the 903 recorded in March and up on the 644 sales recorded in April last year.

OTAGO

Sales volume fell and median price rose in Otago on a month to month basis with 338 homes sold during April, at a median price of $99,250 compared to 364 sales and a median of $95,250 in March. In April last year 207 sales were recorded at a median price of $100,000.

SOUTHLAND

The median price rose in the Southland region from $85,000 in March to $96,000 in April. Sales volumes fell, with 212 homes changing hands, compared to March when 247 homes were sold. This compared to a median of $103,500 last April when 131 homes changed hands.

REINZ PROPERTY MARKET REPORT

TOTAL DWELLINGS MEDIAN PRICE COMPARISONS FOR APRIL 1996-2001

REGION APR96 APR97 APR98 APR99 APR00 MAR01 APR01
Northland 113,000 130,000 141,000 152,250 157,000 146,500 150,000
Auckland 229,000 236,000 235,000 235,000 242,000 248,500 248,500
Waikato/BOP/Gisborne 130,000 141,750 145,500 153,000 157,000 160,000 165,000
Hawkes Bay 122,500 127,500 109,750 131,000 125,000 130,000 128,000
Manawatu/Wanganui 103,000 102,500 101,000 10,000 100,750 106,000 109,000
Taranaki 105,000 95,000 100,000 101,000 108,000 105,000 106,500
Wellington 142,000 150,000 156,150 175,000 190,000 190,000 195,000
Nelson/Marlborough 134,000 140,500 146,000 142,510 146,250 150,000 147,500
Canterbury/Westland 129,000 140,250 141,750 148,000 140,000 149,000 135,000
Otago 104,500 102,500 89,500 94,750 100,000 95,250 99,250
Southland 78,000 85,000 75,000 90,500 103,500 85,000 96,000
NZ Total $149,000 $162,500 $160,000 $170,000 $177,000 $173,800 $178,000

TOTAL DWELLING SALES FOR APRIL 1996-2001

REGION APR96 APR97 APR98 APR99 APR00 MAR01 APR01 Value of sales

APRIL 2001
Northland 264 263 153 184 142 177 164 30,450,183
Auckland 2,857 2,752 1,558 2,306 1,782 2,060 2,360 720,773,083
Waikato/BOP/Gisborne 1,423 1,318 861 1,047 734 895 944 176,612,496
Hawkes Bay 254 252 190 239 185 300 185 25,600,550
Manawatu/Wanganui 381 280 274 375 261 311 321 38,152,175
Taranaki 247 188 132 178 125 156 164 19,665,350
Wellington 917 1,031 756 1,091 834 974 896 200,904,758
Nelson/Marlborough 275 270 178 234 193 272 221 35,722,676
Canterbury/Westland 1,233 1,254 673 942 644 903 701 108,991,775
Otago 312 320 229 275 207 364 338 38,242,925
Southland 208 202 131 172 131 247 212 28,629,728
NZ Total 8,371 8,130 5,135 7,043 5,238 6,659 6,506 1,423,745,699

MEDIAN PRICE BY DISTRICT FOR

APRIL 2001

DISTRICT DWELLINGS SECTION
Northland 150,000 95,000
Auckland 248,500 125,000
Waikato/BOP/Gisborne 165,000 72,250
Hawkes Bay 128,000 73,000
Manawatu/Wanganui 109,000 43,500
Taranaki 106,500 62,000
Wellington 195,000 72,000
Nelson/Marlborough 147,500 72,000
Canterbury/Westland 135,000 77,500
Otago 99,250 68,000
Southland 96,000 85,500
Total NZ $178,000 $78,000
* Dwelling includes houses, units, town houses, apartments, residential investment blocks and home and income.

AUCKLAND BY REGION APRIL 1999 – 2001

Median
APR 99 APR 00 MAR 01 APR 01
Nth Shore 275,000 262,000 265,000 276,000
Waitakere 196,000 210,000 205,000 183,500
Akl City 267,000 280,000 289,500 275,000
Manukau 235,000 222,500 235,000 237,500
Papakura 180,000 185,750 204,500 188,000
Metro Akl 240,000 249,000 252,000 252,500

Number Sold
APR 99 APR 00 MAR 01 APR 01
Nth Shore 401 348 353 515
Waitakere 320 240 265 222
Akl City 783 632 824 879
Manukau 500 316 376 439
Papakura 59 44 57 55
Metro Akl 2,063 1,580 1,875 2,110

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