Buying a property in Auckland is likely to require a budget of over $1 million, but there are areas where homes have sold for under $500,000, annual data shows.
Low listings and high prices make getting onto the property ladder - particularly in New Zealand's biggest cities - a challenge.
The Real Estate Institute of New Zealand (REINZ) confirms over the 12 months to June 2021, more than 60 percent of houses sold in Auckland were over $1 million. The median price in the super city now $1.150 million.
But there are areas within Auckland where houses have sold for a lot less. For first-home buyers with a budget up to $500,000, suburbs such as Randwick Park, Kingseat, and Pukekohe could all be worth a look.
The city commute is likely to be a lot longer, and REINZ chief executive Jen Baird said buyers may also need to allocate money in their budget to renovate.
"While most of them do require a commute into the city, and many may require some renovation, the key is to get a foot onto the property ladder and remember that you won’t live in your first home forever," Baird said.
Another option is to consider a smaller property, such as a townhouse (median price $1.020 million), a unit (median price $820,000), or an apartment (median price $879,000).
"That's a significant difference and will mean a lower deposit is required, and that more location options are available," Baird added.
According to the Real Estate Institute of New Zealand (REINZ) sales figures over the 12 months from June 2020 to June 2021, the cheapest 3-bedroom family homes in Auckland sold for prices between $405,000 and $460,000.
Auckland's cheapest 3-bedroom homes sold in 2020/2021
- 25 Ocean View Crescent, Rakino Island, sold for $405,000 on December 29, 2020
- 1/100 Shifnal Drive, Randwick Park, sold for $442,500 on August 24, 2020
- 72 Howard Road, Orere Point, sold for $450,000 on February 2, 2021
- 35 McRobbie Road, Kingseat, sold for $455,000 on July 30, 2020
- 4 Holland Street, Pukekohe, sold for $456,000 on July 12, 2020
- 30b Tasman Street, Pukekohe, sold for $460,000 on September 14, 2020.
*Source: REINZ (excludes apartments, units, and homes with remediation issues, including leaky buildings and fire damage).
The current environment of low property stock means first-home buyers ready to buy now have little choice but to sit and wait.
In the meantime, continuing to save a deposit and researching areas in their price range is a good way to prepare.
The property list above was amended on July 14, 2021 due to errors in some of the data supplied to Newshub.