Improvement In Residential Property Market

20 June 2002

Nationwide Improvement In Residential Property Market

Sales and property values in May improved nationwide in comparison to May 2001, boding well for the New Zealand residential property market in 2002, according to the Real Estate Institute of New Zealand Institute National President, Mr Rex Hadley.

The Institute’s residential property statistics for May 2002 shows the national median sales price and sales volume are well improved on that recorded in May 2001, although on month-to-month comparison the national median sales price eased by a small margin and the national sales volume eased by 163 transactions.

The national median price for May was $188,000, $1,000 less than in April but $18,000 higher than the $170,000 median in May 2001.

Mr Hadley said that the month to month easing in the national sales volume was relatively minor, and that the figures are best compared against May 2001, adding that the statistics for 2002 continue to consistently outperform those recorded in previous years.

He said, “Despite the onset of Winter and the firming of short term interest rates, the number of transactions recorded are only slightly less than those recorded in April and are considerably improved on those for May 2001. In this context, the Institute is very pleased at the level of activity in the market. All in all, 2,600 more properties changed hands in May 2002 than in May 2001.”

The national sales volume for May was 9,061 compared with 9,224 in April and the May 2001 figure of 6,461.

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 and median sale price on the same period last year.”
On month-to-month comparison, the median sale price also rose for five of the eleven regions, those being; Auckland, Northland, Southland, Hawkes Bay, and Taranaki. The median sale price for six of the eleven regions fell on a month-to-month basis, namely; Nelson/Marlborough, Waikato/BOP/Gisborne, Manawatu/Wanganui, Canterbury/Westland, Wellington, and Otago.
The total value of sales nationwide in May 2002 of $2.10 billion, fell from the 2.18 billion recorded in April however rose significantly from the 1.31 billion recorded in May 2001.

-ENDS-REINZ PROPERTY MARKET REPORT

TOTAL DWELLINGS MEDIAN PRICE
COMPARISONS FOR MAY 2000-2002

REGION MAY 00 MAY 01 APRIL 02 MAY 02
Northland 135,000 152,500 155,000 170,000
Auckland 237,750 235,000 265,000 266,000
Waikato/BOP/Gisborne 157,000 155,000 169,000 165,000
Hawkes Bay 122,250 123,500 131,100 133,000
Manawatu/Wanganui 100,000 100,000 115,000 104,000
Taranaki 94,500 100,000 105,750 110,000
Wellington 185,000 198,000 212,000 204,000
Nelson/Marlborough 145,000 152,750 167,750 157,500
Canterbury/Westland 146,000 135,000 146,000 139,000
Otago 102,000 94,000 105,000 97,000
Southland 75,000 75,000 82,000 85,000
NZ Total $172,000 $170,000 $189,000 $188,000

REINZ PROPERTY MARKET REPORT

TOTAL DWELLINGS MEDIAN PRICE
COMPARISONS FOR MAY 1996-1999

REGION MAY 96 MAY 97 MAY 98 MAY 99
Northland 115,000 138,000 147,500 153,000
Auckland 227,500 235,000 232,000 230,000
Waikato/BOP/Gisborne 133,000 145,000 150,000 156,500
Hawkes Bay 117,750 128,100 120,000 127,000
Manawatu/Wanganui 95,000 101,000 96,000 102,000
Taranaki 95,000 95,250 91,000 95,000
Wellington 139,500 152,000 168,500 170,000
Nelson/Marlborough 135,750 133,500 145,500 142,500
Canterbury/Westland 132,000 138,450 140,000 140,000
Otago 95,875 97,000 95,000 86,000
Southland 80,000 85,000 66,500 76,000
NZ Total $148,000 $162,500 $164,000 $167,875

TOTAL DWELLING SALES FOR MAY 2000-2002
REGION MAY 00 MAY 01 APRIL 02 MAY 02 Value of sales
MAY
2002
Northland 155 132 221 175 37,861,700
Auckland 1,722 2,110 3,379 3,268 1,076,082,037
Waikato/BOP/Gisborne 710 935 1,389 1,286 245,936,915
Hawkes Bay 268 248 288 342 51,441,728
Manawatu/Wanganui 256 297 394 388 46,890,650
Taranaki 136 175 226 194 24,367,210
Wellington 814 927 1,079 1,141 266,326,174
Nelson/Marlborough 227 246 356 369 64,988,425
Canterbury/Westland 730 805 1,087 1,168 193,953,947
Otago 284 330 454 415 55,244,229
Southland 122 256 351 315 43,187,790
NZ Total 5,424 6,461 9,224 9,061 2,106,280,805

TOTAL DWELLING SALES FOR MAY 1996-1999
REGION MAY 96 MAY 97 MAY 98 MAY 99
Northland 261 251 138 140
Auckland 2,592 2,658 1,675 2,501
Waikato/BOP/Gisborne 1,330 1,382 785 1,066
Hawkes Bay 248 285 173 258
Manawatu/Wanganui 336 365 275 378
Taranaki 168 191 137 165
Wellington 953 988 815 1,144
Nelson/Marlborough 257 242 170 250
Canterbury/Westland 1,304 1,180 822 826
Otago 342 291 216 308
Southland 234 198 133 177
NZ Total 8,025 8,031 5,339 7,213

TOTAL SECTION MEDIAN PRICE
COMPARISONS FOR MAY 1999-2002

REGION MAY 99 MAY 00 MAY 01 MAY 02
Northland 87,500 90,000 86,000 85,000
Auckland 105,000 118,000 115,500 122,000
Waikato/BOP/Gisborne 66,500 72,000 68,250 65,500
Hawkes Bay 75,000 50,000 53,000 67,750
Manawatu/Wanganui 38,000 28,500 45,000 60,000
Taranaki 60,000 27,000 33,500 37,500
Wellington 60,500 76,000 81,250 76,000
Nelson/Marlborough 64,500 70,000 75,000 89,000
Canterbury/Westland 73,500 72,500 78,000 82,000
Otago 46,000 65,000 78,000 65,000
Southland 68,775 87,000 75,000 80,500
NZ Total $77,750 $78,000 $80,000 $85,000

AUCKLAND BY REGION MAY 1999 – 2002

Median
MAY 99 MAY 00 MAY 01 APRIL 02 MAY 02
Nth Shore 250,500 262,000 263,150 291,000 280,000
Waitakere 190,000 190,000 194,000 198,500 207,000
Akl City 265,000 270,000 267,500 308,000 315,000
Manukau 233,000 236,000 222,750 255,000 265,000
Papakura 187,000 195,000 204,000 192,500 180,000
Metro Akl 235,000 242,000 240,000 270,500 273,000
Number Sold
MAY 99 MAY 00 MAY 01 APRIL 02 MAY 02
Nth Shore 493 291 378 658 654
Waitakere 379 265 266 386 401
Akl City 847 547 763 1,303 1,197
Manukau 501 358 430 578 616
Papakura 55 57 61 80 87
Metro Akl 2,275 1,518 1,898 3,005 2,955

REAL ESTATE INSTITUTE OF NEW ZEALAND 20 June 2002
MARKET REPORT REGIONAL HIGHLIGHTS:

NORTHLAND
A total of 175 homes changed hands in Northland, compared to 221 in April. The median price for the area was $170,000, up from both the $155,000 recorded in the previous month and the $152,500 recorded for May last year, when 132 homes were sold.

AUCKLAND
In Auckland, 3,268 home settlements were recorded during May, down on the 3,379 recorded in April and up on the 2,110 homes that changed hands in May 2001. The median price for the region was $266,000 in May compared to $265,000 for April, and the $235,000 recorded for May 2001.

On the North Shore, the median price fell to $280,000 for May from the $291,000 recorded in April and compared to the $263,150 recorded in May 2001. Home sales fell to 654 from the 658 in April 2002 and compared to 378 sales in May 2001.

A total of 401 homes were sold in Waitakere City, up from both the 386 recorded last month and the 266 sales recorded last May. The median price was $207,000, up on both the $198,500 recorded in April and the $194,000 for May 2001.

In Auckland City 1,197 homes changed hands, up on both the 1,303 sales recorded in April and up the 763 sales recorded in May 2001. The median price of $315,000 was up both on the $308,000 recorded for April and the $267,500 recorded twelve months ago.

Home sales and the median sale price rose in Manukau City, with 616 homes changing hands at a median price of $265,000. This compared with 578 sales and a median price of $255,000 in April and 430 sales recorded last May at a median price of $222,750.

In the Papakura district, 87 homes changed hands, compared to 80 in April and 61 in the same month last year. The median price of $180,000 was down on both the $192,500 recorded in April 2001 and the $204,000 recorded for May 2001.

A total of 2,955 home settlements were recorded in Metropolitan Auckland, down from the 3,005 in April and up on the 1,898 recorded for the same month last year. The median price of $273,000 was up on both the $270,500 recorded for April and the $240,000 recorded for May 2001.

WAIKATO/BAY OF PLENTY/GISBORNE
Sales decreased in the Waikato/Bay of Plenty/Gisborne region with 1,286 homes changing hands, compared to 1,389 in April. The median price was $165,000, compared with $169,000 in April and $155,000 in May 2001 when 935 homes changed hands.

HAWKE’S BAY
The sales volume rose in May with a total of 342 homes changing hands at a median price of $133,000, compared to $131,100 and 288 sales in April. This compared to 248 sales and a median price of $123,500 a year ago.

MANAWATU/WANGANUI
The sales volume in the region was down on a month-to-month basis with 388 home settlements recorded in May compared to 394 in April but rose on the 297 recorded in May last year. The median price of $104,000 was down on the $115,000 of the previous month and up on the $100,000 recorded in May 2001.

TARANAKI
The sales volume rose on a year-to-year basis and fell on month-to-month comparison with 194 homes changing hands compared to 226 in April. The median price rose to $110,000 for May compared to $105,750 for April. The median sales price for May 2001 was $100,000 when 175 homes were sold.

WELLINGTON
The median price in the Wellington region fell to $204,000 from the $212,000 recorded in April 2002 but rose on the $198,000 median recorded in May 2001. The sales volume rose from both the previous month and last year, with 1,141 recorded sales in May compared to 1,079 home sales in April 2001, and 927 sales in the same month last year.

NELSON/MARLBOROUGH
The sales volume rose in May with 369 homes sold in the Nelson/Marlborough area, compared to 356 sales in April. The median price of $157,500 was down on the $167,750 recorded in April, but up on the $152,750 recorded last May when 246 homes were sold.

CANTERBURY/WESTLAND
The median price fell on a month-to-month basis in the Canterbury region at $139,000 for May, compared to $146,000 in April but rose on the $135,000 recorded in May 2001. A total of 1,168 home settlements were recorded, up on both the 1,087 recorded in April and the 805 sales recorded in May last year.

OTAGO
Sales fell in Otago on a month-to-month basis and rose on year-to-year comparison with 415 homes sold during May, at a median price of $97,000 compared to 454 sales and a median of $105,000 in April. In May last year 330 sales were recorded at a median price of $94,000.

SOUTHLAND
The median price rose in the Southland region from $82,000 in April to $85,000 in May. Sales volumes fell, with 315 homes changing hands, compared to April when 351 homes were sold. This compared to a median of $75,000 last May when 256 homes changed hands.

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

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