Harcourts' Latest Market Watch Business Update
New Zealand property market commentators have been particularly active in recent weeks speculating about the future, with many talking about values dropping further.
As our figures help to show though, across the country the market is performing considerably differently in the various locations and sectors and thus it's difficult to make generalisations and predictions.
According to the evidence we have, strong demand from unsatisfied owner-occupiers due to a relative lack of available property seems to be driving solid prices.
While the total volume of written sales for our group, the largest in the country, was down in July on the same month last year the average price was up – with the mid-upper end of the market experiencing continued demand and the lower-end (within which investors typically operate) continuing to struggle.
An increase in new exclusive listings, up 10% overall last month on July 2009, suggests a more balanced Spring market might be on the menu with supply and demand being more equitable.
Hayden Duncan, CEO,
Harcourts New Zealand
| Northern |
July 2010 |
July 2009 |
% Change |
| Exclusive Listings |
1,719 |
1,475 |
17% |
| Auction/Tenders |
510 |
477 |
7% |
| Property on Hand |
3,071 |
3,725 |
-18% |
| Written Sales |
1484 |
1579 |
-6% |
| Average Price |
$539,942 |
$467,737 |
15% |
|
Written sales volumes were similar to the levels seen a year ago. The amount of property available is showing some signs of improvement with new listings up.
|
|
| Central |
July 2010 |
July 2009 |
% Change |
| New Exclusive Listings |
1,432 |
1,487 |
-4% |
| New Auction/Tender Listings |
298 |
280 |
6% |
| Property on Hand |
3,226 |
2,975 |
8% |
| Written Sales |
1098 |
1470 |
-25% |
| Average Price |
$336,815 |
$330,315 |
2% |
|
The figures prove how tough things are in this region. Auctions and tender numbers are up as sellers are keen to see results and these methods of sale are delivering outcomes.
|
|
| Wellington |
July 2010 |
July 2009 |
% Change |
| New Exclusive Listings |
1316 |
1,345 |
-2% |
| New Auction/Tender Listings |
360 |
341 |
6% |
| Property on Hand |
2,565 |
2,168 |
18% |
| Written Sales |
1184 |
1448 |
-18% |
| Average Price |
$341,868 |
$313,506 |
9% |
|
The Lower North Island market remains soft. Available property for sale is on the rise but is starting from a low base. Here too auctions and tenders are proving popular.
|
|
| Christchurch |
July 2010 |
July 2009 |
% Change |
| New Exclusive Listings |
2,600 |
2,271 |
14% |
| New Auction/Tender Listings |
378 |
207 |
-25% |
| Property on Hand |
3,287 |
3,612 |
-9% |
| Written Sales |
1689 |
2251 |
-25% |
| Average Price |
$384,658 |
$342,795 |
12% |
|
A solid 14% increase in new exclusive listings means more property is more available for sale and we should therefore see the written sales volume recover over the coming months.
|
|
| South Island Provincial |
July 2010 |
July 2009 |
% Change |
| New Exclusive Listings |
1155 |
888 |
30% |
| New Auction/Tender Listings |
149 |
172 |
-13% |
| Property on Hand |
2,549 |
2,319 |
10% |
| Written Sales |
778 |
853 |
-9% |
| Average Price |
$307,665 |
$291,200 |
6% |
|
The environment of scarcity is changing here too. In July there was a 30% increase in new exclusive listings and property on hand rose - good signs some confidence is returning to the market around this region.
|
|
This article is published courtesy of Harcourts. Harcourts has been in existence since 1888 and is New Zealand’s leading real estate group with around 180 offices nationwide. Harcourts also has over 280 offices in Australia and offices in Indonesia, Fiji, Singapore, China, South Africa and Zambia, and is in the process of entering the USA.
Posted: 20 Aug 2010
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