Predicting future trends based on monthly percentage increases in property prices is for the foolhardy. However sighting the peaks and troughs in price movements over a longer time frame like a year or five years creates interesting debate. Trade Me’s Sales Price Index is therefore invaluable to property investors whom love to discuss ‘all things property’. June 2016 has shown a slowing down in the percentage increase of property prices when compared to a year earlier.
Auckland’s property prices were up just 9.7% in June 2016 compared to 20.4% at the same time a year earlier. The RBNZ LVR restriction on Auckland property investment has done it’s job in sending local investors else where. Bay of Plenty has a 19.4% increase compared to 11.6% in June 2015. With Hawkes Bay showing the biggest increase – June 2015 it was just .5% and in June 2016 it was 17%. Only three regions seem to be left out in the cold including Taranaki it’s really not in favour showing a 2.4 percent drop in property prices since June 2015.
Waikato and Otago have had the largest percentage gains in property prices with both regions up more than 20 percent. Smaller abodes like units particularly in Auckland, have been in high demand and thus have bucked the overall downward trend of dropping property price increases.
“Average asking prices for a unit in Auckland set a new record in June, up 17.5 per cent to $589,000. Units in Auckland broke the $500,000 mark a year ago, and since then these properties have jumped $87,000.”
Renovating properties for sale is core activity of PropertyTutors investor clients and a spokesperson confirmed Units have featured more over the past year.