Well it finally happened, Auckland home values hit $1.03M on the 1st of September.
Our market valuation data shows average house values hit $1.03 million on 1 September across Auckland residential dwellings.
What Does $1.03M Mean?
Basically, what this means is that an Auckland home can comfortably buy two Christchurch homes, which average $509,000. For Hamilton, you need an extra $10k, sitting at $521,000.
1 in 3 Aucklanders have considered leaving. If a homeowner wanted to leave they could purchase a family home and have a rental next door at current values. It’s little wonder that homeowners entertain the idea of having a significant passive income by simply moving out of Auckland
With capital gains of apartments keeping up with houses in Auckland over the last 5 years, there is only slight reprieve when looking at apartment dwellings.
They’ve hit an average of $620,000; quite a way off $1M, but you’re getting almost exactly half the floor area to live in. Our data shows that apartments in Auckland have an average floor size of just 78 square metres, vs 162m for a standard dwelling.
When we remove the 135,000 apartments available in Auckland the story is only slightly worse at $1.09M.
Current Supply Is Not Working
Supply is one answer, but current supply isn’t helping those who have been priced out of the market. New builds are not within first home buyers reach
- Only 13.9% of builds since 2010 have a Homes Estimate within the Auckland market’s lower quartile.
- 47.6% of builds since 2010 have a Homes Estimate within the Auckland market’s upper quartile, which is over $1.2M.
Incentivising investment in the type of builds that are attractive to first home buyers is one option. LVR restrictions on investors aren’t helping the supply side problem.
Our HomesEstimate model is not based on sampling for this data, it consists of all 447,000 Auckland homes monthly. The HomesEstimate uses an Automated Valuation Model (AVM), encompassing council housing data, council values, and recent sales activity provided by Auckland Council on a weekly basis.
HomesEstimates have a 6.73% Gross Median Error in Auckland with a 10% error rate at 67%. Anything above 65% is considered world class.
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