The year to September 2015 saw the median house price rise by 25.4% in Auckland. Yet again eye watering growth for Auckland property owners. For the same period Christchurch’s median house price grow by 4.4% and Wellington achieved a modest 3.3%.
Many Auckland Investors are now buying in the regions due to the LVR restrictions imposed on Auckland rental properties and their presence is being felt particularly in the neighbouring regions of Bay of Plenty, Waikato and Northland. These areas have seen their median house price go up by over 10% in the last month. This must be welcoming news however long it lasts.
Investors buying less properties in Auckland may be evident in October’s statistics and all eyes will be on the results come early November. However the investors departure shouldn’t be cause for joy as it’s not a long term solution to Auckland’s housing shortage. 40,000 homes are needed for supply to meet demand. Auckland building consents are up for July 15 however and at levels required to stem the deficit from getting worse as long as net migration doesn’t increase.