14 Apr 2015

Overheated Auckland fuels housing figures

2:12 pm on 14 April 2015

Auckland's super-heated real estate market is pushing up house sales and prices nationwide.

Auckland houses

Photo: RNZ / Diego Opatowski

The Real Estate Institute of New Zealand said sales across the country in March were up 28 percent on the previous month, but in Auckland they rose by 56 percent.

The national median price rose eight percent from $440,000 in March 2014 to $475,000 last month, but in Auckland that increase was 13 percent to $720,000.

The Institute's chief executive Colleen Milne said the national median sale price over the past year would have been otherwise flat, if Auckland's sales had been excluded.

"The national median price, excluding Auckland, has remained at $350,000 for the past two months, indicating that supply and demand are far more balanced outside of Auckland," she said.

Auckland also saw a record number of auction sales in March, accounting for half of all the sales, which the Institute said resulted in premium prices for properties.

Million dollar plus homes

The Real Estate Institute said houses selling for more than a million dollars now make up about a quarter of Auckland house sales.

Colleen Milne said by comparison, in 2003, million dollar homes only made up about ten percent of the Auckland market.

She said there is also strong demand for properties over $2 million dollars in the north of the region.

The Auckland areas of Waitakere, North Shore, and Manukau had the biggest price increases.

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