Auckland needs 25,000 homes

Auckland needs 25,000 new homes

According to the government, by the end of 2015 Auckland will face a shortfall of 25,000 homes.

It was a long, hot March in the property sector. The Real Estate Institute says more than 8800 properties changed hands across the country during the month, a massive 20 per cent up on the same time a year ago and the highest March figure since 2007 — the peak of the last property boom.

The institute says the national median property price is $475,000, up $35,000 (8 per cent) on a year ago, and in the 12 months to March, Auckland’s median price rose by 13 per cent — from $637,000 to $720,000.

Of all properties sold in March, 2267 went under the hammer, 604 more auctions than the same time last year.

In a press release, the institute’s CEO, Colleen Milne, says although sales are spread across the country, the increase in the median price is “almost entirely an Auckland affect”.

“Auckland continues to see demand [that’s] stronger than the available supply, with new developments across the region barely impacting on demand,” she says.

“Listings remain very tight across the region, with strong demand for $2 million-plus properties in the north of the region and investor activity to the south.”

Auckland posted a record number of sales, 3672 in March — up from 3036 a year ago — with around half of all properties in the city being sold at auction.

Looking across sale values, Milne says there is a spike in the number of properties that sold for more than $1 million in Auckland.

The latest median prices for Auckland are jaw dropping for first-home buyers. North Shore, $865,000; Auckland City, $850,000; Waitakere, $642,000; Manukau City, $682,000; and Rodney, $698,000. Waitakere saw the biggest rise, with its median price jumping 19 per cent on a year ago.

Milne says: “Across the rest of the country sales volumes and median prices are far better balanced, with a number of regions reporting good sales numbers, good listings and plenty of activity.”

When Auckland is taken out of the national median price, the figure drops from $475,000 to $350,000 — prices have barely moved in the rest of the country during the past 12 months.