New Zealand Property Prices Hit Record Highs
News Posted On: 12 July 2012
Property prices in New Zealand hit record highs in June according to the Real Estate Institute of New Zealand (REINZ), and sales volumes also increased by 17.3% compared to a year earlier. In spite of these figures the Chief Executive of REINZ has cautioned that the market is recovering rather than booming, since many buyers and sellers lost confidence during the global financial crisis.
In June the median price of property was NZ$372,000, which is an increase of NZ$2000 on the previous month’s figures. The national median price increased by 3.2% in June compared to June last year, and the stratified median house price index increased by 5.3% from a year ago to reach a record high.
This stratified index adjusts for the mix of the type of houses sold. June saw 6,135 houses sold which was a decrease of 14.5% on May, but is in line with seasonal patterns that generally see property sales decline during the winter months. However June was the strongest month for sales since 2007 and NZ $2.8 billion worth of property was sold during this month.
Record highs were also seen in Christchurch and Auckland, and prices rose by 8.8% in Christchurch and by 7% in Auckland. These two areas account for around half of national sales activity, but the overall pattern throughout the rest of the country is for increased sales volumes with prices holding steady rather than rising.
Auckland is still suffering from an acute housing shortage, as there are too few properties available to meet buyer demand. Christchurch is still recovering from the earthquake and is slowly rebuilding.
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Written by Les Calvert
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