All Topics / General Property / Auckland Prices

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  • Profile photo of Mortgage HunterMortgage Hunter
    Join Date: 2003
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    Simon Macks
    Mortgage Broker
    0425 228 985

    3 year fixed rate – 6.85%

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of MonopolyMonopoly
    Join Date: 2004
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    Okay now I’m curious….

    How does this impact those in more remote areas of NZ (on both islands); that is to say, are they equally feeling the pinch of downward spiral in property prices, and are investors fixing their IRs in light of further increases??

    What are the NZ bird-dog’s views??? [blink]

    Anyone…..Westan, Mini, CastleDreamer??? [blink]

    Thanks in advance,


    Profile photo of baloobaloo
    Join Date: 2003
    Post Count: 122

    Following on from Monopoly’s question…

    When we start seeing a retraction in prices, do people expect it to mirror the explosion, i.e. start in the far reaches and move into the centres. Or work in the same manner, i.e. price reduction in the major centres which starts to spread outwards ?

    Profile photo of westanwestan
    Join Date: 2002
    Post Count: 1,950

    Hi Guys

    some interesting questions, this is the way i see it,
    Auckland has been overpriced (expensive) for a while and set for some slowdown or drop in price. As Melbourne and Sydney have also.

    Regarding the regional areas that i keep a close eye on, the market has definately slowed down, the buying frenzie of the past 12 months has weakened. Interest rate rises have really given buyers a chance to stop and think before they put in an offer. Having said that there are more buyer than seller still and the markets we are in we are struggling to get deals.

    Baloo your comment about the ripple effect. I feel that NZ has followed Aussie (thats why i bought up big here over the past 18 months), so far my guess has been right. Lets look at what is happening in Australia, the areas that i’ve invested in (in OZ) haven’t come back at all. In fact they have still risen over the past 12 months, so i’m not aware of the ripple effect hitting regional areas of Australian cities. Will NZ follow the OZ experience ???? i think while there are more buyers than seller the market will hold up well.

    I made these comments in one of our newsletters dated 18 Sept 2004 (i send out newsletter every so often to people who are using our buying service).

    Future Capital Growth
    I’m often asked what do I see as the future for capital growth in NZ. My view is the commonly held one over here. The property market has had some great growth over the past 18 months. While not rising as much as the Australian market it has still performed very well especially recently. After a number of rate rises the market has certainly slowed down. While there are still more buyers than sellers, in most markets sellers are becoming more realistic on price expectations. So what about the future, for the short term? There have been a number of commentators who see the market likely to drop, this is much the same as we were hearing in Oz about 12 months ago. While the doomsayers were wrong in Australia, I think they will be wrong in NZ also. I see the market moving sideways for the near future. If you are buying today in NZ and expect to sell out in 12 months (without doing anything to your property) for a tidy profit, I certainly wouldn’t encourage that expectation. However, I feel that for the long term the prospects for New Zealand look very encouraging. As you are well aware property investing is usually a long-term investment. Dabble (gamble) in Call Options if you want the thrill of a quick profit (or loss).

    How can we try to increase the prospects of capital growth? It has been my practice in Australia to buy into markets that will experience some type of growth. Often this will come about by some major economic development in the community, such as a new industry being established. We can never promise capital growth to you, as we really just don’t know, but if we buy in areas that will be demanding more workers then we may be able to expect rents to rise along with prices as well, even in a flat market.

    regards westan

    I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database

    Profile photo of Michael RMichael R
    Join Date: 2003
    Post Count: 302

    Never make investment decisions or assumptions based on what you read in the media.

    An adjustment in any market, no matter how severe, can result in a profitable outcome for those who are prepared.

    — Michael

    Profile photo of wilandelwilandel
    Join Date: 2003
    Post Count: 761

    Hi all,

    You cannot compare Auckland prices to regional NZ prices….

    I have lived in Auckland for 2 years (a few yrs ago) [blush2] and it is not similar to any other markets in NZ.

    It is like comparing areas like Toorak to Horsham (VIC). Worlds apart!![biggrin]

    The regional market is TOTALLY different to the Auckland market, and should never be compared.

    Perhaps you could do a comparison of Auckland to Sydney or Melbourne, but not to regional areas…

    There are still a lot of good deals around for quite a while I believe – as Westan wisely said, for the “long term” investor.

    Also, I don’t think that the fixed interest rates are moving too high… That tells you something.



    Passionate about NZ +ve cashflow property!!! We can source property for you for a fee. Send me your email address to join our database to receive great NZ property deals!!

    Profile photo of Michael RMichael R
    Join Date: 2003
    Post Count: 302

    What the media overlooks when they compare median prices is the effect “supply” has on those prices.

    Month to month sales are down in Auckland, Wellington, Queenstown, etc [using New Zealand as an example] but supply is playing an influential role in this equation.

    For example, there are not many worthwhile $million plus properties available at this time which in the past year or more have driven the increase in median prices.

    One reason being the better properties have already changed hands and buyers are currently in a “wait and see” pattern.

    — Michael

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