Media Release: September Auckland Property Sales Reinforces Recovery Underway

For the second consecutive month, Auckland residential property sales held on to the gains in sales first felt in August, while September’s prices remained stable.

“September was another modest but good sales period on the road to recovery,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“Property sales in the month at 825 were the second highest for a month in the last 21 months, and while down 6.1 percent on August’s sales, they were a third higher than in September last year.

“The median sales price for the month at $987,000 remained constant with where we were at in August, and this underlines the downward price cycle has likely run its course.

“It’s the second consecutive month that the median price has increased and is 3.4% higher than July’s median price of $950,000, the lowest median price in nearly three years.

“The average sales price in September was $1,058,771, which was down 2.7 percent on that for August.

“With the General Election almost behind us and the summer season ahead, we can now look forward to a return of the normal seasonal upturn that occurs post-September.

“More property is listed, particularly higher priced homes, and buyer interest returns. This in turn leads to an increase in sales numbers and more competitive bidding at auctions.

“The prospects for a healthy recovery in the housing market leading into Christmas looks promising.

“Properties valued at under $750,000 figured prominently in September’s sales, with 26.3% of all sales being in this segment of the market.”

“It highlights the growing prominence apartment and town house sales are playing in the Auckland market, and the vastly increased property options available to first-time buyers.

“The change in emphasis away from stand-alone housing towards multiple properties on a single site has now reached the point where it is lowering the entry point for home ownership for a great number of people.

“At the top end of the market 41 properties sold for more than $2 million, while 9 of these sales were for $3 million or more.

“The market continues to offer buyers an extensive range of options with 4192 properties on our books at month end.

“During the month 1469 new properties were listed, the second highest number this year.

“The rural and lifestyle markets in Northland and the surrounding districts of Auckland started the month slowly but picked up from mid-month on, with the value of sales doubling those for the same month last year. Bank lending for rural property remains a challenge for many would-be buyers.”