Property market continues to outperform 2000

REAL ESTATE INSTITUTE OF NEW ZEALAND
23 July 2001

2001 residential property market continues to outperform 2000

Residential property statistics for June 2001, released today by the Real Estate Institute of New Zealand, show the national median sales price is well improved on both May 2001 and June 2000, while the national sales volume has eased slightly from May 2001 but increased significantly from June 2000.

The national median sales price rose $7,000 to $177,000 in June, compared to the $170,000 recorded in May. Property values also rose from June 2000, which recorded a median sales price of $170,000, according to Rex Hadley, National President of the Institute.

Mr Hadley said, "The overall picture of the residential property market in 2001 is much improved on last year, and it must be acknowledged that year to year comparison is a far more useful yardstick than on a month to month basis, enabling analysis that takes into account factors such as seasonal differences. To illustrate this, while there is some evidence of a slight downward trend in sales volumes, the harsh winter being weathered throughout New Zealand is hardly conducive to house hunting. Conversely, sales are well improved from June 2000, which indicates a keen level of interest in prospective home owners despite the challenging weather.”

The total value of sales nationwide in June 2001 of $1.3 billion reflects the improvement in the residential property market from 2000, with 632 extra transactions between June 2000 and June 2001, an increase that has seen a further 200 million dollars change hands in comparison to the $1.1 billion recorded twelve months ago.

The national sales volume for June 2001 was 6,147, easing slightly from the 6,461 sales in May but well improved from the 5,515 homes changing hands in June 2000.

On a year-to-year basis, the median sale price rose for six of the eleven regions, those being; Northland, Auckland, Hawkes Bay, Wellington, Nelson/Marlborough and Otago. Those regions easing on year-to-year comparison were Waikato/BOP/Gisborne, Manawatu/Wanganui, Canterbury/Westland, Taranaki and Southland.

On month-to-month comparison, the median sale price rose for eight of the eleven regions, those being; Northland, Auckland, Waikato/BOP/Gisborne, Hawkes Bay, Manawatu/Wanganui, Nelson/Marlborough, Canterbury/Westland and Otago. The median sale price for three of the eleven regions fell on a month-to-month basis, namely; Wellington, Taranaki and Southland.

Section activity eased as median section price increased with 521 sections changing hands at a median price of $85,000, compared to 574 sold during May at the median price of $80,000.

-ENDS-

Real estate information is also available via the Institute's official property directory - RealENZ - on the Internet. RealENZ is a search facility providing comprehensive information on residential, lifestyle, rural, commercial, investment and rental properties. RealENZ's Internet address is: www.realenz.co.nz

For further information contact: Mr Rex Hadley, National President

The Real Estate Institute of New Zealand Inc

Mobile: (025) 904 015

Issued by Shandwick (NZ) Limited Phone: (09) 307 1722

(025) 230 5768

Regional highlights:

NORTHLAND

A total of 172 homes changed hands in Northland, compared to 132 in May. The median price for the area was $158,000, up from both the $152,500 recorded in the previous month and the $153,000 for June last year, when 137 homes were sold.

AUCKLAND

In Auckland, 2,077 home settlements were recorded during June, down on the 2,110 recorded in May and up on the 1,845 homes that changed hands in June 2000. The median price for the region was $253,000 June compared to $235,000 for May, and the $236,500 recorded for June 2000.

On the North Shore, the median price rose to $272,150 for June from the $263,150 for May and fell on the $277,500 recorded in June 2000. Home sales rose from both the 313 in June 2000 and the 378 sales in May to 436 in June 2001.

A total of 228 homes were sold in Waitakere City, down from the 266 recorded last month and up from the 200 sales recorded last June. The median price was $204,000, up on both the $194,000 recorded in May and the $190,000 for June 2000.

In Auckland City 707 homes changed hands, down from the 763 sales recorded in May and up from the 616 sales recorded in June 2000. The median price of $290,000 was up on both the $267,500 recorded for May and the $272,000 recorded twelve months ago.

Home sales fell and the median sale price rose in Manukau City, with 421 homes changing hands at a median price of $250,000. This compared with 430 sales and a median price of $222,750 in May and 466 sales recorded last June at a median price of $219,250.

In the Papakura district, 44 homes changed hands, compared to 61 in May and 63 in the same month last year. The median price of $187,000 was down on the $204,000 recorded in May and up on the $192,500 for June 2000.

A total of 1,836 home settlements were recorded in Metropolitan Auckland, down from the 1,898 in May and up on the 1,658 recorded for the same month last year. The median price of $261,500 was up on the $240,000 recorded for May 2001 and the $243,000 recorded for June 2000.

WAIKATO/BAY OF PLENTY/GISBORNE

Sales fell in the Waikato/Bay of Plenty/Gisborne region with 858 homes changing hands, compared to 935 in May. The median price was $157,500, compared with $155,000 in May and $160,000 in June 2000 when 847 homes changed hands.

HAWKE’S BAY

The sales volume fell and median price rose in June with a total of 206 homes changing hands at a median price of $126,000, compared to $123,500 and 248 sales in May. This compared to 219 sales and a median price of $115,000 a year ago.

MANAWATU/WANGANUI

The sales volume in the region rose on a year to year basis and month to month comparison with 314 home settlements recorded in June compared to 297 in May and 294 in June last year. The median price of $101,500 was up on the $100,000 of the previous month and less than the $103,000 recorded in June 2000.

TARANAKI

Sales volume fell on a month to month basis with 135 homes changing hands compared to 175 in May. The median price fell to $92,000 for June compared to $100,000 for May. The median sales price for June 2000 was $118,000 when 118 homes were sold.

WELLINGTON

The median price in the Wellington region fell to $195,000 from the $198,000 recorded in May 2001 while rising on the $190,000 in June 2000. The sales volume fell on the previous month but rose on year to year comparison, from 927 recorded sales in May to 910 homes in June 2001, and compared to 789 sales in the same month last year.

NELSON/MARLBOROUGH

Sales volumes rose in June with 261 homes sold in the Nelson/Marlborough area, compared to 246 sales in May. The median price of $154,000 was up on the $152,750 recorded in May, and also improved on the $140,000 recorded last June when 183 homes were sold.

CANTERBURY/WESTLAND

The median price rose in the Canterbury region at $140,000 for June compared to $135,000 in May, but fell from the $145,000 recorded in June 2000. A total of 724 home settlements were recorded, down on the 805 recorded in May but up on the 677 sales recorded in June last year.

OTAGO

Sales volume fell and median price rose in Otago on a month to month basis with 277 homes sold during June, at a median price of $100,000 compared to 330 sales and a median of $94,000 in May. In June last year 219 sales were recorded at a median price of $95,000.

SOUTHLAND

The median price fell in the Southland region from $75,000 in May to $65,000 in June. Sales volumes also fell, with 213 homes changing hands, compared to May when 256 homes were sold. This compared to a median of $68,500 last June when 187 homes changed hands.

REINZ PROPERTY MARKET REPORT

TOTAL DWELLINGS MEDIAN PRICE COMPARISONS FOR JUNE 1996-2001

REGION JUNE96 JUNE97 JUNE98 JUNE99 JUNE00 MAY01 JUNE01
Northland 115,000 134,000 140,000 146,000 153,000 152,500 158,000
Auckland 224,000 232,000 230,000 240,000 236,500 235,000 253,000
Waikato/BOP/Gisborne 130,000 149,000 154,000 155,000 160,000 155,000 157,500
Hawkes Bay 114,000 121,500 124,000 128,000 115,000 123,500 126,000
Manawatu/Wanganui 104,000 98,500 99,000 96,500 103,000 100,000 101,500
Taranaki 96,000 100,000 97,000 96,500 118,000 100,000 92,000
Wellington 138,000 149,500 160,000 177,000 190,000 198,000 195,000
Nelson/Marlborough 138,500 132,500 144,000 138,000 140,000 152,750 154,000
Canterbury/Westland 135,000 141,000 137,500 140,000 145,000 135,000 140,000
Otago 99,000 104,000 95,460 95,000 95,000 94,000 100,000
Southland 73,250 79,000 72,250 90,000 68,500 75,000 65,000
NZ Total $145,250 $162,000 $165,000 $172,000 $170,000 $170,000 $177,000

TOTAL DWELLING SALES FOR JUNE 1996-2001
REGION JUNE96 JUNE97 JUNE98 JUNE99 JUNE00 MAY01 JUNE01 Value of sales

JUNE 2001
Northland 180 254 139 190 137 132 172 30,052,334
Auckland 1,676 2,196 1,719 2,154 1,845 2110 2,077 620,814,588
Waikato/BOP/Gisborne 1,019 1,161 788 9,39 847 935 858 149,564,788
Hawkes Bay 189 231 184 239 219 248 206 28,859,500
Manawatu/Wanganui 267 292 233 289 294 297 314 36,908,750
Taranaki 139 153 124 159 118 175 135 15,679,050
Wellington 745 944 709 821 789 927 910 200,529,472
Nelson/Marlborough 184 209 166 2s16 183 246 261 47,253,545
Canterbury/Westland 1,031 992 685 824 677 805 724 117,877,454
Otago 255 248 223 230 219 330 277 34,872,800
Southland 165 168 134 143 187 256 213 22,340,991
NZ Total 5,850 6,848 5,104 6,204 5,515 6,461 6,147 1,304,753,272

MEDIAN PRICE BY DISTRICT FOR JUNE 2001

DISTRICT DWELLINGS SECTIONS
Northland 158,000 74,000
Auckland 253,000 137,500
Waikato/BOP/Gisborne 157,500 73,500
Hawkes Bay 126,000 87,000
Manawatu/Wanganui 101,500 37,000
Taranaki 92,000 23,750
Wellington 195,000 77,000
Nelson/Marlborough 154,000 73,000
Canterbury/Westland 140,000 88,000
Otago 100,000 89,250
Southland 65,000 76,000
Total NZ $177,000 $85,000
* Dwelling includes houses, units, town houses, apartments, residential investment blocks and home and income.

AUCKLAND BY REGION JUNE 1999 – 2001

Median
JUNE 99 JUNE 00 MAY 01 JUNE 01
Nth Shore 255,000 277,500 263,150 272,500
Waitakere 199,500 190,000 194,000 204,000
Akl City 276,750 272,000 267,500 290,000
Manukau 246,500 219,250 222,750 250,000
Papakura 201,000 192,500 204,000 187,000
Metro Akl 245,000 243,000 240,000 261,500
Number Sold
JUNE 99 JUNE 00 MAY 01 JUNE 01
Nth Shore 392 313 378 436
Waitakere 279 200 266 228
Akl City 732 616 763 707
Manukau 428 466 430 421
Papakura 82 63 61 44
Metro Akl 1,913 1,658 1,898 1,836

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