National Median House Price eclipses itself again

REAL ESTATE INSTITUTE OF NEW ZEALAND 19 June 2002

National Median House Price eclipses itself again - Real Estate Institute

New Zealand residential house market defied the predictions of some market commentators during May with another solid increase in the national median price from $203,000 to $210,000 on the back of very strong sales, according to the Real Estate Institutes’ National President, Mr. Graeme Woodley.

Despite suggestions that the market might be in line for a ‘breather’, Mr. Woodley said the national median increase was underwritten by a particularly busy market with 11,158 sales in May compared with 9,047 sales in April 2003 and 9,016 sales in the previous corresponding month, May 2002.

However the Auckland market showed signs of stabilising with the Auckland median price slipping slightly from the April 2003 median of $290,000 to $289,000 in May 2003, but still considerably ahead of the May 2002 Auckland median of $266,000.

“Although it would be easy to say Auckland has come off the top after leading the recent surge in house prices around the country, the fact that the May volume reached 4,005 sales, a record for May since 1996, indicates that the market in Auckland is very buoyant still, although undoubtedly underpinned by strong apartment sales. Auckland sales for May compared with 3,009 sales in April and 3,268 sales in May 2002.

“The median sales price for the Auckland region has eased only by a thousand dollars, and the Institute believes it is far more likely that this is a result of sales of lesser value predominating in this period, rather than a slip in overall values.”

Mr. Woodley said the Auckland region statistics showed North Shore, Waitakere, Auckland City and Manakau medians all rose from April but that Papakura and Metropolitan Auckland medians fell back, accounting for the overall slip in the Auckland region median over the same period.

Nationally, the median increase was driven by a strong performance by Wellington and several smaller regions, Mr. Woodley said.

The Wellington median was up from $225,000 to $235,000 month on month and well above the $204,000 May 2002 median.

The Northland region was up from $150,000 in April 2003 to $167,000 in May 2003, bringing it closer to the May 2002 median of $170,000.

Hawkes Bay saw a strong rise in the median from $156,500 in April 2003 to $163,050 in May, well up on the May 2002 median of $133,000.

Similarly Nelson/Marlborough continued its strong run with a rise in the median from $198,000 in April 2003 to $217,000 in May 2003, (May 2002, $157,500).

The Taranaki median price was up from $117,000 in April to $120,000 in May 2003 (May 2002, $110,000).

Canterbury/Westland was also up from $155,000 in April to $157,000 in May 2003 (May 2002, $139,000).

The median price in Southland also rose, from $95,250 in April to $100,000 in May 2003, (May 2002, $85,000).

Regions to experience a slight decline in median price in April 2003 included Waikato/BOP/Gisborne, Manawatu/Wanganui, and Otago.

Mr. Woodley said the reduction in mortgage interest rates was supporting market confidence and the recent reduction in the Official Cash Rate by the Reserve Bank would encourage stability in the home ownership market.

“Over the next couple of months we might expect some seasonal easing in the market but with likely further falls in interest rates and strong demand for housing arising from factors such as positive migration, the fundamentals of the market still look pretty sound. Essentially we are looking at a market really only catching up on a very flat period in the late 1990s”, he said.

In Christchurch City, sales rose strongly from the 784 transactions to 1,035 in the latest period. The median price also improved, from $150,500 in May 2002 to $172,500 in May 2003 (April 2003: $170,000).

In the North Eastern suburbs of Avondale, Avonside and Burwood Park, the median price rose from $137,500 in May 2002 to $169,000 in May 2003, but eased from the $184,355 recorded last month.

In the Western Suburbs, the median price increased from both last year and last month, while in the North Western Inner suburbs of Merivale, Fendalton and Ilam the median price eased from that recorded in May 2002 and April 2003.

In the Central Christchurch City area, the median price rose sharply to $213,375, from $171,000 in April 2003 and compared well with the $186,000 recorded in May 2002.

In Dunedin, the median price of $125,000, had firmed on the $122,750 and $100,000 recorded in April 2003 and May 2002 respectively. Sales also trended upwards, from 286 in April and 243 in May 2002 to 332 in the latest period.

-ENDS-

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REINZ Market Report Regional Highlights:
Northland:
Northland’s May 2003 median house price was up significantly at $167,000, in comparison to last month’s recording of $150,000 and last year’s figure of $170,000. Volume of sales for May 2003 at 304 were well up on April’s 195 and last May’s175.

The median section sale price over the May period increased to $92,250 for May 2003 up from May 2002’s $85,000. Sixty-four sections were sold in total during the month of May.

Auckland
The Auckland median house price increased to $289,000, up on last year’s figure of $266,000, but down slightly on the median price of $290,000 for April 2003. Sales for the region significantly increased in May 2003 at 4,005, up from April’s 3,009 and May 2002’s 3,268.
The median section sale price for the 212 sections that changed hands in the month remained strong at $150,000, well above last year’s $122,000 median.
Prices on the North Shore exhibited a steady increase to $331,000, up on last month’s figure of $326,000 and significantly up on last May’s median price of $280,000. The number of houses sold also showed a continued improvement at 690, an increase on last month’s 595 and last May’s 654 sales.
Waitakere region median prices reached a new high of $232,750, up on last month’s $230,000 and May 2002’s $207,000. Sales for the area were also up on last month’s recording of 419 sales to reach 636. Thirty-five sections were sold at a median price of $150,000.
Auckland City’s median price increased considerably to $371,500, compared with last month’s figure of $355,730. The number of houses sold at 1,364 was well improved on both the 999 sold in April and the 1,197 sales in May 2002. Thirty-two sections were sold for a median price of $275,000.
Manukau’s housing market continued to demonstrate growth with median prices reaching $276,000, up on last month’s $275,000 and last May’s $265,000. The number of houses sold also hit a new high for the year with 739 sales in comparison to April’s 539 and May 2002’s 616.
Sales volumes rose in Papakura, from April’s total of 68 to 93 for May 2003. The median price fell to $200,000 in May, in comparison to the April recording of $224,000, but was up on last May’s figure of $180,000.
House prices for Metropolitan Auckland dipped slightly to $295,000, down $5,000 on the median $300,000 achieved in April, but well up on May 2002’s recording of $273,000. Sales for the region showed continued improvement to reach 3,522 sales, surpassing last month’s total of 2,620 sales.
Waikato / Bay of Plenty / Gisborne

The median sale price for sections and the median house price both increased in comparison to the prior year, reaching $178,000 for the median house price and $78,500 for the median section price in May 2003. Volume of sales hit a new high in May 2003 reaching 1,655, in comparison to April’s1,415 and May 2002’s 1,286.

This compared to the median house price of $165,000 and the median section price of $65,500 achieved in May 2002. One hundred and sixty three sections changed hands this month.

Hawke’s Bay

Hawke’s Bay housing prices increased from $133,000 for May 2002 to $163,050 for May 2003. The median section sale price also exhibited a positive trend, increasing from $67,750 for May 2002 to $75,500 for May 2003. Sales for the region were up significantly at 424, surpassing April’s 326 and May 2002’s 342.

However the number of sections sold decreased from 39 to 31 sales over the same period of time. This compares to April 2003’s 39 sections sold for a median $100,000.
Manawatu / Wanganui
The median price for the Manawatu / Wanganui area continued its steady improvement from $104,000 for May 2002 to $109,000 for May 2003. Volume of sales at 486 kept pace with April’s 473 and was a significant increase on last May’s 388.
The median section sale price however declined from $60,000 to $50,000 over the year commencing May 2002. Twenty-four sections were sold at a median $50,000.
Taranaki
Taranaki’s median section price increased considerably from $37,500 in May 2002 to $61,500 for May 2003. Sales volume increased on a monthly and yearly basis to 261, up on April’s 210 and May 2002’s 194 sales.
Meanwhile the median housing figure firmed to $120,000, up $10,000 on last May’s $110,000. Sixteen sections changed hands in May for $61,500, in comparison to April 2003 when 10 sections sold for a median $85,000.
Wellington
Wellington recorded a 15.19 per cent increase in housing prices to reach $235,000 for May 2003, well ahead of the median $204,000 achieved in May 2002. Sales volume continued to grow to 1,178, up on April’s 1,039 and May 2002’s 1,141.
The Hutt Valley’s median sale price and number of houses sold continued its upward growth pattern for the year, increasing to $220,000, up on April’s $193,000 and last May’s $183,000. The number of houses sold totalled 230, ahead of last month’s 213. Northern Wellington median house prices increased to $270,000 in comparison to $254,500 achieved in April and $230,200 in May last year. Sales in Northern Wellington eased to 121, slightly down on the 128 properties that changed hands in April.
The median house price in Western Wellington fell to $342,000, down on April’s $362,000. However the number of houses sold was up 10 to 70 sales, in contrast to the 60 properties that changed hands in April. Southern Wellington’s median house prices picked up this month to $316,000, an increase on last month’s $302,000 and last May’s $263,000. The number of houses sold showed a marked improvement to 57 sales, up from April’s 49, but down significantly in comparison to last May’s 76 sales.
The median sale price for the Eastern area declined to $317,000, down on April’s $320,500. Sales increased to 75, up on April’s 56 but down on last May’s 85 transactions. Central Wellington’s sales increased steadily from May 2002’s 79 to reach 118 in May 2003. However the median house price for Central Wellington fell from $310,250 in May to $328,750 in April.
Nelson / Marlborough
Housing prices significantly increased in Nelson / Marlborough from $157,500 in May 2002 to $217,000 for May 2003, a growth of 37.77 per cent. Volume of sales dropped slightly to 375 for May 2003, down on April’s 388, but up on May 2002’s 369.

One hundred and forty nine houses changed hands in the Marlborough region, at a median sales price of $170,000. This compared to 128 transactions in Nelson at a median of $234,275 and 33 sales in Motueka at a median sales price of $202,500.

Section sales prices also rose for the 83 sections which sold over the course of the month to reach $105,000, in contrast to last year’s $89,000.
Canterbury / Westland
Figures for the Canterbury / Westland region showed an improvement from $139,000 for May 2002 to $157,000 for May 2003. Sales significantly increased in May to 1,567, up on April’s 1,251 and May 2002’s 1,168.
However the median section sale price declined slightly from $82,000 for May 2002 to $81,500 for May 2003. One hundred and eighty eight sections changed hands during the month.

City Central’s housing median increased from $186,000 in May 2002 and $171,000 in April to $213,375 in May 2003. The number of houses sold has also declined slightly from 32 in April to 30 in May, but has increased in comparison to last May’s 23 sales.

The median price for the North East suburbs of Christchurch dropped significantly from $184,355 for April to $169,000 for May 2003. However this month’s figure was an increase on last May’s $137,500. Sales for the region increased 20, from 58 in April to 78 in May, also up on May 2002’s 62 sales.

Meanwhile Riccarton and Upper Riccarton’s median significantly increased to $199,000, in comparison to April’s $169,000 and May 2002’s $165,250. Number of houses sold for the month kept pace at 38 sales for May 2002 and 2003, however a slight drop from April’s 40 sales.
The median price for the North Western Inner suburbs of Fendalton/Ilam and Merivale decreased slightly from $313,500 in April to $276,000 for May, also down on May 2002’s $285,000. However sales for the region at 92 kept pace with May 2002’s 90 sales, up significantly on April’s 58.
Otago
Otago’s median housing price increased from $97,000 for May 2002 to $120,500 for May 2003. Volume of sales steadily increased from 415 in May 2002, 449 in April and 552 in May 2003.
Meanwhile median section sale prices also improved during the year to reach $80,000 from May 2002’s $65,000. Fifty-nine sections sold during the month.
Dunedin City’s housing prices steadily increased to $125,000, up from both April’s $122,750 and May’s $100,000. Sales remained firm at 332, up on both April’s 286 and May’s 243. Central Otago’s housing figures stayed equal to April’s results at $222,500. The number of houses sold for the region firmed in comparison to the results achieved in both May and April (May 2003: 84 sales; April: 72 sales; May 2002: 73 sales).
The median house prices for the North Otago region of $85,200 for the month of May was a marked improvement in comparison to May 2002 results of $75,000 and April’s $74,500. Sales for North Otago also continued to climb to 77, up on April’s 41. South Otago’s housing prices took a dive from April’s $80,800 to $66,500 in May. However the number of houses sold remained relatively steady at 34 sales, in comparison to April’s 32 and May’s 21 sales.
East Otago’s recorded median price kept pace with the results recorded in the previous months to reach $85,000 (April: $81,250; May: $73,000). 25 properties sold in May, an increase on the prior month when 18 sales were recorded and last May when 17 sales were carried out.
Southland

The median section sale price for Southland marked a considerable increase from $80,500 for May 2002 to $133,000 for May 2003. Sales for the region increased to 351, a significant increase on April’s 292 and last May’s 315.

Housing prices also rose, reaching $100,000, up on May 2002’s recorded figure of $85,000. Ninety-one sections changed hands for $133,000, a significant increase on April 2003 when 39 sections sold for $95,000.

REINZ PROPERTY MARKET REPORT
TOTAL DWELLINGS MEDIAN PRICE COMPARISONS
FOR MAY 1996-2003

REGION MAY 00 MAY 01 MAY 02 APRIL 03 MAY 03
Northland 135,000 152,500 170,000 150,000 167,000
Auckland 236,000 235,000 266,000 290,000 289,000
Waikato/BOP/Gisborne 157,000 155,000 165,000 180,000 178,000
Hawkes Bay 122,000 123,500 133,000 156,500 163,050
Manawatu/Wanganui 100,000 100,000 104,000 114,000 109,000
Taranaki 94,500 100,000 110,000 117,000 120,000
Wellington 184,000 198,000 204,000 225,000 235,000
Nelson/Marlborough 144,500 152,750 157,500 198,000 217,000
Canterbury/Westland 146,000 135,000 139,000 155,000 157,000
Otago 102,000 94,000 97,000 121,000 120,500
Southland 75,000 75,000 85,000 95,250 100,000
NZ Total $172,000 $170,000 $188,000 $203,000 210,000

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 1996-2003
REGION MAY 00 MAY 01 MAY 02 APRIL 03 MAY 03
Northland 155 132 175 195 304
Auckland 1,722 2,110 3,268 3,009 4,005
Waikato/BOP/Gisborne 710 935 1,286 1,415 1,655
Hawkes Bay 268 248 342 326 424
Manawatu/Wanganui 256 297 388 473 486
Taranaki 136 175 194 210 261
Wellington 814 927 1,141 1,039 1,178
Nelson/Marlborough 227 246 369 388 375
Canterbury/Westland 730 805 1,168 1,251 1,567
Otago 284 330 415 449 552
Southland 122 256 315 292 351
NZ Total 5,424 6,461 9,061 9,047 11,158

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

REGION Value of sales MAY 2003
Northland 63,404,750
Auckland 1,424,854,479
Waikato/BOP/Gisborne 344,759,726
Hawkes Bay 80,380,734
Manawatu/Wanganui 61,881,582
Taranaki 37,089,420
Wellington 316,246,015
Nelson/Marlborough 96,150,778
Canterbury/Westland 283,864,124
Otago 89,847,123
Southland 64,725,180
NZ Total 2,863,203,911

MEDIAN PRICE BY DISTRICT FOR MAY 2003

DISTRICT DWELLINGS SECTIONS
Northland 167,000 92,250
Auckland 289,000 150,000
Waikato/BOP/Gisborne 178,000 78,500
Hawkes Bay 163,050 75,500
Manawatu/Wanganui 109,000 50,000
Taranaki 120,000 61,500
Wellington 235,000 93,938
Nelson/Marlborough 217,000 105,000
Canterbury/Westland 157,000 81,500
Otago 120,500 80,000
Southland 100,000 133,000
Total NZ$ 210,000 95,000
* Dwelling includes houses, units, town houses, apartments, residential investment blocks and home and income.
AUCKLAND BY REGION MAY 2000 – 2003
MEDIAN
MAY 00 MAY 01 MAY 02 APRIL 03 MAY 03
Nth Shore 262,000 263,150 280,000 326,000 331,000
Waitakere 190,000 194,000 207,000 230,000 232,750
Akl City 270,000 267,500 315,000 355,730 371,500
Manukau 236,000 222,750 265,000 275,000 276,000
Papakura 195,000 204,000 180,000 224,000 200,000
Metro Akl 242,000 240,000 273,000 300,000 295,000
NUMBER SOLD
MAY 00 MAY 01 MAY 02 APRIL 03 MAY 03
Nth Shore 291 378 654 595 690
Waitakere 265 266 401 419 636
Akl City 547 763 1,197 999 1,364
Manukau 358 430 616 539 739
Papakura 57 61 87 68 93
Metro Akl 1,518 1,898 2,955 2,620 3,522

WELLINGTON BY REGION MAY 2000 – 2003
MEDIAN
MAY 00 MAY 01 MAY 02 APRIL 03 MAY 03
Hutt Valley 165,500 150,000 183,000 193,000 220,000
Northern 215,000 235,000 230,200 254,000 270,000
Western 265,000 285,000 265,000 362,000 342,000
Southern 265,000 237,000 263,000 302,000 316,000
Eastern 265,000 270,000 275,000 320,500 317,000
Central 266,000 260,000 298,000 328,750 310,250
NUMBER SOLD
MAY 00 MAY 01 MAY 02 APRIL 03 MAY 03
Hutt Valley 180 212 206 213 230
Northern 82 107 148 128 121
Western 39 74 77 60 70
Southern 42 67 76 49 57
Eastern 46 64 85 56 75
Central 49 62 79 84 118
CHRISTCHURCH BY REGION MAY 2000 – 2003
MEDIAN
MAY 00 MAY 01 MAY 02 APRIL 03 MAY 03
City Central 136,000 126,500 186,000 171,000 213,375
N/East
Avndl/Aside/Burwd Park 157,250 148,500 137,500 184,355 169,000
W/Inner
Riccn/Upper Riccn 156,000 172,500 165,250 169,000 199,000
W/Outer
Hrnby/Heih/Sckbn 120,500 109,500 138,000 136,000 149,250
N/W Inner
Meriv/Fendn/Ilam 217,250 251,000 285,000 313,500 276,000
ChCh City Total
All 19 sub-regions 154,000 150,000 150,500 170,000 172,500
NUMBER SOLD
MAY 00 MAY 01 MAY 02 APRIL 03 MAY 03
City Central 9 20 23 32 30
N/East
Avndl/Aside/Burwd Park 46 45 62 58 78
W/Inner
Riccn/Upper Riccn 10 17 38 40 38
W/Outer
Hrnby/Heih/Sckbn 15 25 32 53 54
N/W Inner
Meriv/Fendn/Ilam 48 54 90 58 91
ChCh City Total
All 19 sub-regions 528 521 808 784 1,035

OTAGO BY REGION MAY 2000 – 2003
MEDIAN
MAY 00 MAY 01 MAY 02 APRIL 03 MAY 03
Dunedin City 110,000 96,000 100,000 122,750 125,000
Central Otago 152,500 110,000 158,000 222,500 222,500
North Otago 68,750 62,000 75,000 74,500 85,200
South Otago 45,000 44,000 55,000 80,800 66,500
East Otago 90,750 51,500 73,000 81,250 85,000
NUMBER SOLD
MAY 00 MAY 01 MAY 02 APRIL 03 MAY 03
Dunedin City 188 213 243 286 332
Central Otago 36 51 73 72 84
North Otago 30 44 61 41 77
South Otago 13 13 21 32 34
East Otago 14 9 17 18 25

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