REINZ: Auckland no longer the favourite city of the $1m club

30 Sirrah Street, Gisborne.
This property at 30 Sirrah Street, Gisborne sold for over $1m. Photo credit: realestate.co.nz

According to a report on sales of $1 million plus homes, the number sold outside of Auckland has grown, while in Auckland, sales have fallen.

An REINZ million-dollar price report for 2019 shows that in the whole of New Zealand (excluding Auckland), the number of homes sold for $1m plus was 10,869 - 475 more than in 2018.  

By contrast, in Auckland, the number of million-dollar plus homes sold last year dropped by 4.6 percent, to 7658 and chief executive Bindi Norwell said that sales were the lowest since 2014.

“Last year (2019) is the third consecutive year that Auckland has seen a year-on-year decrease in $1m plus properties sold, dropping each year from its peak in 2016 [when] 9634 properties sold for $1m plus."

Although the number of homes sold for $1m or more in Gisborne last year was second-lowest to Southland, the city had a 21.6 percent rise in the 2019 median house price, together with almost double the number of million-dollar homes sold.

"Gisborne [had] a 133.3 percent increase from 2018 (14 properties up from six – an additional eight properties)," Norwell said.

Other than Gisborne, the biggest rises in sales of homes for $1m plus were in Hawkes Bay (up 88.2 percent to 128), Wellington (up 27 percent to 963) and Nelson (up 21.6 percent to 62).  The number of $1m plus sales in Southland increased by one, to four homes.

In Taranaki, Marlborough, Auckland and Northland, the number of homes selling at $1m plus dropped, with Taranaki taking the biggest hit of 24.4 percent year-on-year.

73 Argyle St, Herne Bay, Auckland
Although sales of $3m plus properties in Auckland dropped by 12.9 percent last year, this Herne Bay home sold for over $5m. Photo credit: realestate.co.nz

$3m plus: Gisborne sets new record, increased sales in Wellington

Last year showed an increase in the number of homes sold for $3m or more - but as with sales of $1m plus homes, activity in this price range dropped in Auckland.

“[Last year had] a 26.8 percent increase in $3m plus property sales and a 50 percent increase in $3m plus property sales outside of Auckland,” Norwell said.

"Auckland showed a 12.9 percent decrease in the number of $3m plus properties sold in 2019 (to 323 properties). 

"There was also a 10.6 percent decrease year-on-year in $5m plus properties sold in Auckland in 2019 (59 properties)," Norwell added. 

 In Gisborne, two homes sold for $3m plus last year - a first for the city. 

The highest increase in the number of $3m plus homes sold was in Wellington, where 13 properties were sold last year - up 116.7 percent from 2018. 

Nowell said that demand and supply, regional investment, consumer confidence, low unemployment and strength in the agricultural sector could all be reasons for growth in the number of million-dollar plus homes sold.

"Additionally, we’ve seen more first time buyers in the market who tend to be purchasing at the lower end of the market, which then lifts the overall market up," Norwell said.

Number of $1m plus homes sold in New Zealand by region, 2018-2019

Region                         2018 $1m+     2019 $1m+     % 18/19     2018 $3m+     2019 $3m+     %18/19

  • Auckland:         8025                 7658                 -4.6 %          371                     323                 -12.9%
  • Bay of Plenty:  428                     498                   16.4%           8                         13                   62.5%
  • Canterbury:     376                     384                     2.1%          12                       10                    -16.7%
  • Gisborne:             6                         14                    133.3%        0                         2                       N/A
  • Hawkes Bay:     68                      128                    88.2%          0                         0                        0
  • Manawatu*:       24                         29                   20.8%           0                         0                        0
  • Marlborough:     19                        16                   -15.8%          0                         0                        0
  • Nelson:                 51                       62                    21.6%          0                          0                        0
  • Northland:           110                   106                     -3.6%          2                          3                      50%
  • Otago:                 462                    528                     14.3%       22                         23                   4.6%
  • Southland:          3                             4                     33.3%        0                           0                      0
  • Taranaki:             41                         31                    -24.4%       1                           0                  -100%
  • Tasman:              41                         43                       4.9%       1                           0                   -100%
  • Waikato:             349                     405                      16.1%      4                           7                     75%
  • Wellington:         758                     963                        27%       6                        13                116.7%

Total:                         10,761                     10,869                     1.0%     427                  394               -7.7%

*includes Wanganui.

Source: REINZ 

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