September 2020 Housing Market Update

Auckland Properties Sales Numbers Rise Significantly, But Price Rises Slow

In September, the Auckland property market held on to the high price gains registered in August at the same time as recording the highest number of sales in a month since the peak of the last property cycle in 2017.

“The key to the high sales numbers achieved in September was the number of new listings that came on to the market which, at 1,947, was the highest number in a month since October 2018, and 43.8 percent higher than in August,” said Peter Thompson, Managing Director of Barfoot & Thompson.   

“The large increase in listings released some of the competition for properties that had built up among buyers and was influencing prices.  At the same time as releasing buying pressure, the greater choice was an opportunity to which buyers were quick to respond. 

“In September we completed 1,099 sales. This was 4.2 percent higher than last month and 42.5 percent higher than sales numbers in September last year.

“The average price increase over that for August was less than $1,500, bringing it to $996,945 while the median price increased by just under $20,000 to $930,000.

“While these are record prices in their own right, the reality is September’s average price is 2 percent higher than the average achieved across the previous three months and the median price at $930,000 is up 2.9 percent.

“It is the number of sales being made that have risen significantly in the past four months, not prices. 

“The current prices being paid by buyers shows confidence that prices are likely to hold firm over the medium term.  

“Close to half (47 percent) of sales in the month were for properties that sold for in excess of $1 million, and of these 84, or 7.6 percent of all sales, sold for in excess of $2 million.

“At month end we had 3,780 properties on our books, the lowest number since March but 2.3 percent higher than in September last year. 

“The rural and lifestyle markets to the north and south of Auckland are sharing in the buying activity being experienced in the urban areas. Potential buyers are commenting that their keenness is in part down to the COVID-19 lockdowns.

“In the former Rodney area north of Auckland record sales has left listing for lifestyle blocks in short supply. To the south, particularly around Pukekohe, there is strong demand for properties in the $1 to $2 million price category.

Lifestyle buyers are also interested in one hectare lots and land with transferable building rights.

“In the far north, horticulture blocks, kiwi fruit farms and avocado properties are in high demand. This demand is also extended to greenfield land for planting, beef raising properties and steeper land suitable for forestry.”

Barfoot & Thompson knows Auckland best. It is the city’s leading real estate company, selling around one in three Auckland residential homes, significantly ahead of all other competitor brands. For further information, contact Peter Thompson, Managing Director, telephone 09 307 5523 or 027 453 5931. www.barfoot.co.nz