Auckland house prices still rising

  • 03/12/2015
(File)
(File)

By Tina Morrison

Auckland house price growth accelerated in November, although the volume of sales declined, according to the city's largest realtor.

The average sale price increased 4.2 percent to $876,075 in November from October, the biggest monthly gain in 20 months, Barfoot & Thompson said.

However the number of sales slowed 7.7 percent to 986 in the month, the lowest volume since February, the agency said.

The Government and the Reserve Bank have introduced new measures to try and cool Auckland's bubbling property market, where migrants and investors are adding to competition for a shortage of housing.

"There has been a measurable decrease in market activity," said Barfoot & Thompson director Kiri Barfoot.

"It remains to be seen if prices continue to ignore the tighter regulations, or whether November's prices are the last remnants of momentum that built in the lead up to the introduction of the tighter measures."

The number of houses that sold were priced between $500,000 to $750,000, the category most popular with investors who have less than three properties, Barfoot said.

Meanwhile sales of houses in other price categories were at similar levels to the previous month, the agency said.

The realtor's new listings in November dropped 7.5 percent from October to a seven-month low of 1683.

The number of houses sold at auction in Auckland has fallen, with some agencies reporting clearance rates as low as 30 percent, when they had regularly been around 85 percent, state valuer Quotable Value said in a separate report this week.

NZN