M arket Research

ISSUE 126 | August 2016
Auckland vs Rest Of New Zealand: Dwellings (excluding apartments)
Market Research Everything Property!
Price Distribution Review
Comparing the number of houses (and price of houses) purchased in Auckland between the periods July 2010 to June 2012 and July 2014 to June 2016 there
has been a clear shift to purchasing more houses priced at $600k or more. What is clear to see is the large spike in the number of houses sold in Auckland within
the $1m-1.49m price range over the last 2 years. Comparing Auckland to the rest of New Zealand, the price bracket gap is obvious with the majority of properties
sold within the rest of the country between $400-699k.
Auckland Dwellings
(excl(excl
Apartments)
vs Rest Of
(exclof
Apartments)
Auckland
Dwellings
Apartments)
vsNZRest
NZ (excl Apartments)
TotalTotal
SalesSales
in Price
Comparison
in Range
Price Range
Comparison
Total Sales in Price Range Comparison
20000
Number of Dwellings
Number of Dwellings
Auckland Dwellings
(exclDwellings
Apartments) - (excl
Total Sales
in Price Range Comparison
Auckland
Apartments)
15000
10000
5000
0
July'10 - June'12
20000
15000
10000
5000
0
Auckland July'14 - June'16
July'14 - June'16
Rest Of NZ July'14 - June'16
The number of houses in Auckland with a sales price of $800k plus has been trending upwards since June 2012. While houses with a sales price of $1m-1.5m
have jumped since June 2014, more so than the rest of New Zealand.
Rest
NZZealand
Dwellings
(excl Apartments)
Sales Distribution
Sales Distribution
Rest ofofNew
(excl Auckland)
Dwellings (excl Apartments)
Auckland Dwellings
(excl(excl
Apartments)
Sales
Distribution
Auckland Dwellings
Apartments) Sales
Distribution
2,000
400
1,500
300
1,000
200
500
100
0
Jun 11
Jun 12
Total Units Sold
Jun 13
$600-699k
Jun 14
$700-799k
Jun 15
$800-999k
Jun 16
0
$1-1.5m
Number of Dwellings
2,500
500
Total Number of Dwellings
Number of Dwellings
600
600
500
400
300
200
100
0
Jun 11
Jun 12
Total Units Sold
$1.5m +
Jun 13
$600-699k
Jun 14
$700-799k
Jun 15
Jun 16
$800-999k
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
$1-1.5m
Source: REINZ
Total Number of Dwellings
12-month
rolling average
12 Month
Rolling
Average
12-month
rolling average
12 Month
Rolling
Average
$1.5m +
Source: REINZ
Auckland vs Rest Of New Zealand: Apartments
Comparing the number of apartments (and price of apartments) purchased in Auckland between the periods July 2010 to June 2012 and July 2014 to
June 2016, the growth of apartments sold in the $400-799k bracket has grown exponentially (776 vs 2,828). Compared to the rest of New Zealand, more
apartments are purchased in Auckland priced at $150k or more which is probably due to the large number of Studio apartments within the Auckland market
compared to the rest of the country.
Auckland
Apartments vs
vs Rest
NewNZ
Zealand
Apartments Total
in Price
Range Range
Auckland
Apartments
RestOfof
Apartments
TotalSales
Sales
in Price
Number of Apartments
Number of Apartments
Apartments
Total
Salesin
in Price
Comparison
Auckland Auckland
Apartments
Total
Sales
PriceRange
Range
Comparison
1200
1000
800
600
400
200
0
July'10 - June'12
1200
1000
800
600
400
200
0
Auckland July'14 - June'16
July'14 - June'16
Rest of NZ July'14 - June'16
The number of apartments in Auckland purchased with a sales price of $350k or more has been trending upwards since June 2011 and more so than the rest
of NZ. The number of apartments in Auckland purchased with a sales price between $250-349k has plateaued over the past three years while apartments priced
lower than this have declined.
Rest of NZ Apartments
Sales
Distribution
- 12Distribution
Month Rolling Average
Rest of
New Zealand
Apartments Sales
300
250
200
150
100
50
Jun 11
Jun 12
Total Units Sold
$350-499k
Jun 13
<$150k
$500-699k
Jun 14
Jun 15
$150-249k
$700-999k
Jun 16
0
$250-349k
$1m+
90
80
70
60
50
40
30
20
10
0
Jun 11
Jun 12
Jun 13
Jun 14
Jun 15
160
140
120
100
80
60
40
20
0
Jun 16
Total Units Sold
<$150k
$150-249k
$250-349k
$350-499k
$500-699k
$700-999k
$1m+
Source: REINZ
How good would $1,000 look in your bank account?
Total Number of Apartments
12-month rolling average
350
Number of Apartments
90
80
70
60
50
40
30
20
10
0
Total Number of Apartments
Number of Apartments
AucklandDistribution
Apartments Sales -Distribution
Auckland Apartments Sales
12 Month Rolling Average
12-month rolling average
Source: REINZ
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Residential Property Investor Profile
Reasons
residential
Reasonsforforowning
Owning
Residential
investment
properties
Investment
Properties
In our latest Crockers Property
Investment Index (CPII) survey in
association with IPSOS we asked
investors a series of questions
about their investments to find
out more about them and why
they invest in property. We
compared the answers to the
same survey questions asked in
September 2014. The majority of
property investors (74%) regard
residential investment property
as part of their retirement savings
plan while a sizeable proportion
(47%), residential property
investments are regarded as
a general savings nest-egg.
Residential property investors
often choose property over other
investments for its tangibility
(52%) which leads comfortably
over other considerations like
safer returns (35%), helping
others (29%) and providing better
returns (26%).
For just over half of the residential property investors surveyed, their residential property
investments provide them with a supplementary income, down 7 points from September
2014. Investment property as the main source of income has risen substantially from
9% in September 2014 to 25% in July 2016. In September 2014, 36% of residential
property investors owned three or
more investment properties while in
Number of
of Investment
Investment Properties
Properties Owned
Owned
Number
the current survey this figure has risen
34%
One
to 51%. This finding indicates an
29%
increased demand for properties and
15%
Two
hence potential pressure on house prices.
35%
74%
Retirement
savings
72%
General nest-egg
savings, saving
for a rainy day
47%
47%
18%
To get more of the
good things in life
9%
Jul '16
Sep '14
9%
Saving for kids,
university fees etc
14%
Main
of Investment
Properties
Main
roleRole
of investment
properties
in
in Investors’
Personal
Finances
investors'
personal
finances
0% 20% 40% 60% 80% 100%
Reasons
Investing
in Property
Reasons for
for investing
in property
over
other investment
typesTypes
Over Other
Investment
I like property
- it is a tangible
investment I can see
They provide
supplementary
income
52%
56%
43%
Can help others
e.g. helping children
get a property
59%
26%
Better returns
0%
20%
0%
50%
0% 20% 40% 60% 80% 100%
3%
3%
More than Ten
32%
Jul '16
Sep '14
6%
3%
Eight to Ten
Jul '16
Sep '14
23%
Something else
Jul '16
Sep '14
8%
9%
Five to Seven
25%
9%
29%
23%
12%
7%
Four
52%
They are the
main income
source
35%
Safer returns
22%
14%
Three
50%
100%
Source: CPII Survey Sep 14 and Jul 16. Note: Recipients could choose more than one answer
Auckland Sales & Rental Update
Auckland Median Prices and Sales Numbers
The Median Sales price has seen an increase in June to reach a new high. Meanwhile, the number of sales pattern has followed the normal June dip after a May rebound and is
similar to the levels of this time last year.
Auckland
Residential
Property
Sales
Number
Auckland
Residential
Property
Sales
Number
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
# of sales 2014
Source: REINZ
# of sales 2015
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Mar
Feb
Median price 2016
Apr
2,737
Jan
Dec
Nov
Number of sales
Median price 2015
Oct
Sep
Aug
Jun
May
Apr
Mar
Feb
Median price 2014
Jul
$821K
Jan
Median price for
residential property sold
Auckland
Property
Sales
Median
Auckland Residential
Residential Property
Sales
Median
Price Price
$850k
$800k
$750k
$700k
$650k
$600k
$550k
$500k
$450k
# of sales 2016
Source: REINZ
Auckland Rental Prices
This month Auckland rents for a 2-bedroom residential property have held steady. By comparison 2-bedroom rents across New Zealand have eased slightly to $375 per week. The
Auckland 2-bedroom premium has seen a modest increase to 24%, below the December 2015 high of 28%.
Rents for 3-bedroom properties in Auckland have seen a slight increase to $594, reaching a new peak while 3-bedroom rents across New Zealand are back at their previous peak
of $440 per week. Because 3 bedroom rents across New Zealand rose faster than in Auckland, the Auckland 3-bedroom premium has eased slightly to 35%.
Auckland Residential Property Weekly Rentals - 2 Bedroom
Auckland Residential Property Weekly Rentals - 3 Bedroom
Auckland Residential Property Weekly Rentals 3-Bedroom
2014
2015
2016
$520
2014
2015
Dec
Nov
Oct
Sep
Aug
$480
Jul
$500
Jun
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
$350
Feb
$370
$540
May
$390
$560
Apr
$410
$594
$580
Mar
$430
$600
Feb
Average Weekly Rental
$464
$450
Jan
$470
Jan
Average Weekly Rental
Auckland Residential Property Weekly Rentals 2-Bedroom
2016
Source: REINZ
Source: REINZ
Crockers Property | PO Box 74054 Greenlane, Auckland 1546 | 525 Manukau Road, Epsom, Auckland 1023 | T 09 630 8890
crockers.co.nz | Crockers Property Management Ltd and Crockers Realty Ltd, Licensed (REAA 2008)
Crockers Property Group uses market data from a variety of sources which we believe to be accurate and reliable. This enables Crockers to provide analysis and
interpretation on the property market. Opinions, statements and analysis are from general information only and should not be relied upon for any specific purpose.
Crockers takes no responsibility for decisions you make based on data provided through this printed material.
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