Auckland house prices return to peak levels

Country: New Zealand

3 December 2009

The average price of a house in Auckland, New Zealand, increased by 1% in November compared to the previous month to reach a 23-month high average of $550,217 (£240,000), according to the latest data released by New Zealand property firm Barfoot & Thompson.

Auckland house prices in November were up an impressive 9.9% year-on-year, recovering all the losses experienced during the New Zealand housing slump in the last two years.

Barfoot & Thompson managing director Peter Thompson said: “The level of activity and strength of prices in the housing market is a strong signal that in Auckland at least property has returned to being seen as a sound, medium to long-term investment option.”

However, housing activity in Auckland has not yet returned to 2007 levels, with fewer homes being sold.

“While low interest rates are a factor, buyers are committing on the basis of the property meeting their check lists and views about value for money,” Thompson added. “They are not being driven by concerns that they must act or they might miss out.”

Barfoot & Thompson said that over 5,600 homes in Auckland are currently available for sale.

In November Barfoot & Thompson sold 862 properties in Auckland, down 1% on the number of Auckland homes sold in November 2008.

As far as rents in the city are concerned, the average weekly rent achieved by the company during November was $397 (£173), down $5 (£2.20) a week from October but $16 (£7) a week higher than for November last year.