Auckland house price slump biggest since 2010

Photo: File

Real Estate Institute (REINZ) figures for October show median prices in Auckland fell by 3.2% year on year to $850,000 - the biggest fall since December 2010.

The only other region across the country to experience a fall in the median price year-on-year, was Nelson, which saw a decrease of 6.8% to $447,500 - the biggest drop since April 2012.

Every other region in New Zealand rose taking the median house price for New Zealand, excluding Auckland, to a record price of $440,000 (an 8.5% increase).

"The Auckland Region's decrease of 3.2% year-on-year is predominantly the result of a large number of apartments being sold in the old Auckland City boundary which has therefore brought the median price down for the entire region," said Bindi Norwell, CEO at REINZ. "Auckland City's median fell by 17% to $850,000 the lowest price it's been for 16 months."

Norwell noted that the REINZ House Price Index (HPI) for Auckland City decreased 0.8% year-on-year, whereas the median for the same period fell by 17%. This is because the HPI considers the mix and value of the property sold, not just the sales price," she said.

The volume of sales also remains subdued.

The number of properties sold across New Zealand was down 16% year-on-year to 5689.

Volumes for New Zealand, excluding Auckland, were down 14% year-on-year to 4057 and Auckland's sales count was down 21% to 1632.

The median number of days to sell a property nationally increased by 2 days (from 32 to 34) when compared to October 2016.


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