Number of million-dollar plus properties sold decreases 4%

22 August 2017
For immediate release

Number of million-dollar plus properties sold decreases 4%

The number of properties sold around the country for more than a million dollars during the first half of 2017 decreased by 4% when compared to the first six months of 2016, according to new research issued by today the Real Estate Institute of New Zealand (REINZ).

In the Auckland market, the number of million-dollar properties sold fell by 8% (compared to H1 16). However, for the rest of New Zealand (excluding Auckland), the number of million-dollar plus property sales increased by 16%.

Bindi Norwell, Chief Executive at REINZ says: “Even at the top end of the market we’re starting to see signs of stabilisation occurring – in part due to LVRs continuing to have a greater impact on people’s ability to purchase property but also due to the fact buyers will be starting to take into account interest rate predictions over the next 12-18 months as this will have a significant impact on how people structure their mortgages when purchasing these high-end properties.

“When you look at the Auckland picture, H1 17 saw the lowest number of million-dollar plus properties sold in Auckland since H2 2014 – a clear nod to the stabilisation of property prices in New Zealand’s biggest city. However, most regions saw the top end of the market grow highlighting the buoyancy we’re experiencing around the country,” continues Norwell.

The research also highlighted a number of interesting points about H1 2017 from a regional perspective:

• Otago had the third highest number of properties for sale for more than a million dollars – the first time the region has been in the top 3 since 1H 2011

• Hawkes Bay, Nelson, Taranaki, Tasman, Waikato and Wellington all had the highest number of million-dollar plus properties sold on record

• It was only the second time Tasman and Taranaki experienced double digit sales of million-dollar properties

• The Manawatu/Wanganui had its first $5m plus sale (in the Ruapehu District)

• Auckland experienced more than 50 $5m plus sales for the first time (nearly 80% of these sales were in the legacy Auckland City TLA).

“With six regions across the country experiencing a record number of million-dollar plus sales, it will be interesting to see what impact the election has on the high end of the market as people tend to take more of a ‘wait and see’ approach during an election year,” concludes Norwell.

ENDS

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