Residential property market stable performance

REAL ESTATE INSTITUTE OF NEW ZEALAND 22 May 2002

Residential property market continues strong, stable performance

The residential property market is stabilising, although continuing to perform at a very high level of activity, and property values are holding strong, according to the Real Estate Institute of New Zealand Institute National President, Mr Rex Hadley.

The Institute’s residential property statistics for April 2002 shows the national median sales price and sales volume are is well improved on that recorded in April 2001, although on a month-to-month comparison the national median sales price rose only slightly and the national sales volume eased by 518 sales.

Mr Hadley said that the residential property statistics comparing March to April, showed the property market is stabilising, after dramatic growth earlier in the year, and that 2002 had consistently outperformed those recorded in previous years.

He said, “Given the recent level of activity and nationwide improvement in property values, it is pleasing to see the market begin to stabilise. This is essential, in order to avoid the boom/bust environment seen in the past, and as a result the residential market has set a path for steady, sustainable growth.”

The national median price for April was $189,000, $3,000 more than in March and $11,000 higher than the $178,000 April 2001.

The national sales volume for April was 9,224 compared with 9,742 in March and the April 2001 figure of 6,506.

The national sales volume for April was the highest ever recorded for any April since the Real Estate Institute began gathering statistics in 1988.

Mr Hadley added that the month to month easing in high sales volume was largely a seasonal trend.

He said, “While firming interest rates are having some impact on activity in the property market, this most recent easing is also a result of the usual “Autumn slowdown’ in the residential property market, and in context, 2,718 more properties changed hands in April 2002 than in April 2001.
Mr Hadley said, "On a region by region basis, both sales and values have improved throughout New Zealand, with all eleven regions showing increases in activity on the same period last year, and only two regions experiencing a fall in median sales price.”
On month-to-month comparison, the median sale price also rose for seven of the eleven regions, those being; Auckland, Nelson/Marlborough, Waikato/BOP/Gisborne, Manawatu/Wanganui, Canterbury/Westland, Southland and Wellington. The median sale price for four of the eleven regions fell on a month-to-month basis, namely; Hawkes Bay, Northland, Taranaki, and Otago.
The total value of sales nationwide in April 2002 of $2.18 billion, fell from the 2.24 billion recorded in March however rose significantly from the 1.43 billion recorded in April 2001.

-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

REINZ Market Report Regional Highlights:

NORTHLAND
A total of 221 homes changed hands in Northland, compared to 205 in March. The median price for the area was $155,000, down from the $176,000 recorded in the previous month and up on the $150,000 recorded for April last year, when 164 homes were sold.

AUCKLAND
In Auckland, 3,379 home settlements were recorded during April, down on the 3,708 recorded in March and up on the 2,360 homes that changed hands in April 2001. The median price for the region was $265,000 in April compared to $262,500 for March, and the $248,500 recorded for April 2001.

On the North Shore, the median price rose to $291,000 for April from both the $274,000 recorded in March and compared to the $276,000 recorded in April 2001. Home sales fell to 658 from the 759 in March 2002 and compared to 515 sales in April 2001.

A total of 386 homes were sold in Waitakere City, down from the 397 recorded last month and up on the 222 sales recorded last April. The median price was $198,500, up on both the $198,000 recorded in March and the $183,500 for April 2001.

In Auckland City 1,303 homes changed hands, down on the 1,412 sales recorded in March and up on the 879 sales recorded in April 2001. The median price of $308,000 was down slightly on the $311,000 recorded for March and up on the $275,000 recorded twelve months ago.

Home sales and the median sale price eased in Manukau City, with 578 homes changing hands at a median price of $255,000. This compared with 652 sales and a median price of $265,000 in March and 439 sales recorded last April at a median price of $237,500.

In the Papakura district, 80 homes changed hands, compared to 96 in March and 55 in the same month last year. The median price of $192,500 was up on both the $190,500 recorded in March 2001 and the $188,000 recorded for April 2001.

A total of 3,005 home settlements were recorded in Metropolitan Auckland, down from the 3,316 in March and up on the 2,110 recorded for the same month last year. The median price of $270,500 was up on both the $270,000 recorded for March 2001 and the $252,500 recorded for April 2001.

WAIKATO/BAY OF PLENTY/GISBORNE
Sales increased in the Waikato/Bay of Plenty/Gisborne region with 1,389 homes changing hands, compared to 1,262 in March. The median price was $169,000, compared with $156,500 in March and $165,000 in April 2001 when 944 homes changed hands.

HAWKE’S BAY
The sales volume fell in April with a total of 288 homes changing hands at a median price of $131,100, compared to $137,500 and 330 sales in March. This compared to 185 sales and a median price of $128,000 a year ago.

MANAWATU/WANGANUI
The sales volume in the region was down with 394 home settlements recorded in April compared to 514 in March and 321 in April last year. The median price of $115,000 was up both on the $110,000 of the previous month and the $109,000 recorded in April 2001.

TARANAKI
Sales volume rose on year-to-year and month-to-month comparison with 226 homes changing hands compared to 196 in March. The median price fell to $105,750 for April compared to $115,750 for March. The median sales price for April 2001 was $106,500 when 164 homes were sold.

WELLINGTON
The median price in the Wellington region rose to $212,000 from both the $205,000 recorded in March 2002 and the $195,000 median in April 2001. The sales volume fell on the previous month and rose on year-to-year comparison, with 1,079 recorded sales in April compared to 1,105 home sales in March 2001, and 896 sales in the same month last year.

NELSON/MARLBOROUGH
Sales volumes fell in April with 356 homes sold in the Nelson/Marlborough area, compared to 384 sales in March. The median price of $167,750 was up both on the $157,000 recorded in March, and the $147,500 recorded last April when 221 homes were sold.

CANTERBURY/WESTLAND
The median price rose in the Canterbury region at $146,000 for April, compared to $141,000 in March and the $135,000 recorded in April 2001. A total of 1,087 home settlements were recorded, down on the 1,273 recorded in March and up on the 701 sales recorded in April last year.

OTAGO
Sales volume fell in Otago on a month-to-month basis and rose on year-to-year comparison with 454 homes sold during April, at a median price of $105,000 compared to 485 sales and a median of $107,000 in March. In April last year 338 sales were recorded at a median price of $99,250.

SOUTHLAND
The median price rose in the Southland region from $79,750 in March to $82,000 in April. Sales volumes rose, with 351 homes changing hands, compared to March when 280 homes were sold. This compared to a median of $96,000 last April when 212 homes changed hands.
REINZ PROPERTY MARKET REPORT

TOTAL DWELLINGS MEDIAN PRICE
COMPARISONS FOR APRIL 2000-2002

REGION APRIL 00 APRIL 01 March 02 APRIL 02
Northland 157,000 150,000 176,000 155,000
Auckland 242,000 248,500 262,500 265,000
Waikato/BOP/Gisborne 157,000 165,000 156,500 169,000
Hawkes Bay 125,000 128,000 137,500 131,100
Manawatu/Wanganui 100,750 109,000 110,000 115,000
Taranaki 108,000 106,500 115,750 105,750
Wellington 190,000 195,000 205,000 212,000
Nelson/Marlborough 146,250 147,500 157,000 167,750
Canterbury/Westland 140,000 135,000 141,000 146,000
Otago 100,000 99,250 107,000 105,000
Southland 103,500 96,000 79,750 82,000
NZ Total $177,000 $178,000 $186,000 $189,000

REINZ PROPERTY MARKET REPORT

TOTAL DWELLINGS MEDIAN PRICE
COMPARISONS FOR APRIL 1996-1999

REGION APRIL 96 APRIL 97 APRIL 98 APRIL 99
Northland 113,000 130,000 141,000 152,250
Auckland 229,000 236,000 235,000 235,000
Waikato/BOP/Gisborne 130,000 141,750 145,500 153,000
Hawkes Bay 122,500 127,500 109,750 131,000
Manawatu/Wanganui 103,000 102,500 101,000 100,000
Taranaki 105,000 95,000 100,000 101,000
Wellington 142,000 150,000 156,150 175,000
Nelson/Marlborough 134,000 140,500 146,000 142,510
Canterbury/Westland 129,000 140,250 141,750 148,000
Otago 104,500 102,500 89,500 94,750
Southland 78,000 85,000 75,000 90,500
NZ Total $149,000 $162,500 $160,000 $170,000

TOTAL DWELLING SALES FOR APRIL 2000-2002
REGION APRIL 00 APRIL 01 MARCH 02 APRIL 02 Value of sales
APRIL
2002
Northland 142 164 205 221 40,122,400
Auckland 1,782 2,360 3,708 3,379 1,136,117,080
Waikato/BOP/Gisborne 734 944 1,262 1,389 265,635,089
Hawkes Bay 185 185 330 288 41,252,302
Manawatu/Wanganui 261 321 514 394 49,924,825
Taranaki 125 164 196 226 28,817,300
Wellington 834 896 1,105 1,079 257,019,115
Nelson/Marlborough 193 221 384 356 69,521,585
Canterbury/Westland 644 701 1,273 1,087 191,014,440
Otago 207 338 485 454 58,103,057
Southland 131 212 280 351 48,375,600
NZ Total 5,238 6,506 9,742 9,224 2,185,902,793

TOTAL DWELLING SALES FOR APRIL 1996-1999
REGION APRIL 96 APRIL 97 APRIL 98 APRIL 99
Northland 264 263 153 184
Auckland 2,857 2,752 1,558 2,306
Waikato/BOP/Gisborne 1,423 1,318 861 1,047
Hawkes Bay 254 252 190 239
Manawatu/Wanganui 381 280 274 375
Taranaki 247 188 132 178
Wellington 917 1,031 756 1,091
Nelson/Marlborough 275 270 178 234
Canterbury/Westland 1,233 1,254 673 942
Otago 312 320 229 275
Southland 208 202 131 172
NZ Total 8,371 8,130 5,135 7,043

MEDIAN PRICE BY DISTRICT FOR APRIL 2002

DISTRICT DWELLINGS SECTIONS
Northland 155,000 80,000
Auckland 265,000 131,250
Waikato/BOP/Gisborne 169,000 74,500
Hawkes Bay 131,100 76,000
Manawatu/Wanganui 115,000 49,000
Taranaki 105,750 50,250
Wellington 212,000 78,500
Nelson/Marlborough 167,750 94,500
Canterbury/Westland 146,000 92,000
Otago 105,000 108,750
Southland 82,000 81,250
Total NZ$ 189,000 92,000
* Dwelling includes houses, units, town houses, apartments, residential investment blocks and home and income.
AUCKLAND BY REGION APRIL 1999 – 2002

Median
APRIL 99 APRIL 00 APRIL 01 MAR 02 APRIL 02
Nth Shore 275,000 262,000 276,000 274,000 291,000
Waitakere 196,000 210,000 183,500 198,000 198,500
Akl City 267,000 280,000 275,000 311,000 308,000
Manukau 235,000 222,500 237,500 265,000 255,000
Papakura 180,000 185,750 188,000 190,500 192,500
Metro Akl 240,000 249,000 252,500 270,000 270,500
Number Sold
APRIL 99 APRIL 00 APRIL 01 MAR 02 APRIL 02
Nth Shore 401 348 515 759 658
Waitakere 320 240 222 397 386
Akl City 783 632 879 1,412 1,303
Manukau 500 316 439 652 578
Papakura 59 44 55 96 80
Metro Akl 2,063 1,580 2,110 3,316 3,005

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