Our latest top 20 property hot spots list is out now, showing a $215,000 median annual increase and with North Shore and coastal areas dominating the list.
Highlights
- Top 20 hot spots median sale price up $215,000 (24%) in 2016
- Mission Bay up 53% ($620,000)
- North Shore and coastal areas dominate the list, featuring 6 and 12 times respectively.
Median sales price increases by $215,000 in Top 20
Our list of Auckland's top 20 suburbs is based on greatest percentage of value growth, comparing median sale prices for 2016 with 2015.
In the top 20 list, the median sales price* was up $215,000 (24%) in 2016 from the year before, according to data on our sales.
By contrast, in some areas outside of the top 20, median sales prices were lower than the previous year. In Freemans Bay (last on the list at #113), the median sales price was $554,000, down 54% or $661,000 from $1,215,000 in 2015. In 2016, 122 sales were completed in the area and were mostly apartments, compared with 22 sales in 2015, mostly made up of traditional standalone homes.
"There is a building boom in Auckland. People are also investing in and renovating before they sell. The result is more apartments, and new or higher-end homes. If any of these things are happening in an area, it will affect the median sales price," says Peter Thompson, Managing Director of Barfoot & Thompson.
North Shore and coastal suburbs dominate list
The list features 12 coastal suburbs, with areas beyond the traditionally popular inner-city suburbs. 18 suburbs are new to the Top 20, with value gains across high and low-end suburbs.
Six North Shore suburbs - Takapuna, Belmont, Castor Bay, Rothesay Bay, Albany and Browns Bay - feature in the list, the most of any Auckland region. Takapuna was the North Shore's hottest suburb with the median sales price up 37% or $365,000 from 2015 ($1,355,000 vs $990,000).
Mission Bay takes first place again
Mission Bay took the number #1 spot with its median sales price up 53% to $1,787,500 and $620,000 higher than in 2015. The remaining top 20 increased between 22% and 37%, or $120,000 to $432,500.
"Real estate sales prices continued to rise throughout 2016, with the rate of increase slowing slightly towards the end of the year. Mission Bay increased by around a third more than any other area."
Beyond the central suburbs
Many central suburbs which showed strong growth in 2015 dropped down the list. Orakei fell from its #1 spot in 2015 to #108 ($2,109,947 vs $2,050,926; 38 vs 27 in sales).
"Over time, different areas have their time in the sun. The rise and fall of suburbs in the list demonstrates the cycle of growth. While January sales data shows Auckland prices are steady, growth may have peaked for now in some areas whilest others may continue rising."
"A definite trend is growth in areas outside inner city suburbs, particularly the North Shore last year. Buyers are looking further out and perhaps trading off a central location for other lifestyle factors."
*Median sale price (the middle price among sales in each suburb) was chosen over average sale price to provide a more balanced and reliable view of value growth. Due to the smaller groups of sales suburb by suburb, averages would have been more vulnerable to the impact of any particularly high or low value sales. The list excludes rural sales, sections, sales of $5 million and above, and suburbs with less than 20 sales during a twelve month period.