Auckland house prices surge to another record high

By Leith van Onselen

The REINZ has released its house price data for June, which revealed that the median house price nationally fell 1.1% to $500,000 from $506,000 in May, with the annual growth clocking in at a still strong 11.1%:

ScreenHunter_14070 Jul. 18 08.37

However, Auckland house prices rose another 2.0% in June to a record $821,000, to be up 8.7% year-on-year:

ScreenHunter_14068 Jul. 18 08.36

Overall, five regions hit an all-time high median price in June, namely Auckland ($821,000), the Waikato Bay/Plenty Region ($438,000), Northland ($360,000), Otago ($295,000) and Central Otago Lakes ($730,050).

There has also been a marked increase in the number of homes selling for more than $1 million – up one-third over the past 12 months – whereas “affordable” homes selling for less than $400,000 have declined by 6.1%.

Sales volumes fell by 3% in seasonally-adjusted terms in the month of June, although they were still up by 6% year-on-year.

The data comes as Labour leader Andrew Little has released an interactive housing map claiming that 98% of the country is afflicted by a “housing crisis”, because house price increases have exceeded wage increases.

It also follows recent data from the RBNZ showing that investors have increased their share of new mortgages to a record high 47%.

The RBNZ better tighten the macro-prudential screws, as well as put more pressure on parliament to reform housing policy.

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Unconventional Economist
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  1. The power of Macroprudential tools! Who knew they will work so wonderfully.

    /not snark

      • Exactly, it just pushes first home buyers out. Makes way for sexier investors who don’t have to compete with young scum lol.

      • That is exactly right… something UE has never written about, despite pointing it out several times. MP does not help house ownership, it never has, its a retrogressive step throwing us back to the 1960’s.

        Who does MP affect? Those who are poorer, those without 30% deposits, contractors without steady incomes, etc.. Yes in the LT MP does lower house prices, but only at locking out a large section of society.

        Moreover, the real reason why MP will never work in NZ (or here in the LT) is that it restricts domestic buyers in favour or cash up forigen ones.

        Everything written on this website is fundamentally flawed. And it has been for years, and yet you continue pursue it. And the arguments more stupid by the day – despite some of us warning you were on the wrong track

        Its like your NG argument. Its all political bollocks. Changing it will do nothing for housing affordability, because the recent boom is not remotely reliant upon it. You will burn domestic buyers in favour of forigen ones.

        This whole potemkin village narrative on NG, MP is just fundamentally wrong – on so many different levels. Pawns in a larger political spin. Its all about cashed up foreign buyers. Thats all… cashed up foreign buyers and the lessening in the restriction of debt.

        The fix is to stop outside cash buying. Its that simple. yes maybe it could be construed as racist, but I am certain there are Australian born with Chinese ethnicity that cannot afford too… and now cashed up Indians are now arriving on the scene.

      • Well it is both cashed up foreign buyers and the domestic investors, property developers front-running them. But you’re right the only way to stop it to control the inflow of overseas money flooding the market.

        And one market driven way to do that would be to let the AUDCNY do its thing, stop trying to suppress the currency by cutting rates etc, let it react naturally to the flows of hot money.

      • Changing NG will do nothing for housing affordability, because the recent boom is not remotely reliant upon it.

        NG wastes vast amounts of tax revenue. Governments have a responsibility to not waste tax revenue regardless of housing affordability (in fact, not wasting tax revenue might indirectly help own home buyers by allowing an income tax cut). It’s ironic that conservative governments don’t care about this waste of tax revenue. Maybe they care more about their own supporters than financial prudence.

      • But negative gearing costs budget approx $5b a year, or adds $5b to the housing market if you like. But FIRB approved $47 billion in Chinese investment in property last year, double the year before. That already dwarfs the negative gearing impact, and is only likely to rise again next year. That’s only counting the legitimate FIRB approved purchases, and only from mainland China.

      • +1 Researchtime
        I sometimes wonder whether this website is a think-tank (I use the word ‘think’ in the broadest possible sense of the word) for the ALP.

    • Whoa, it’s about time that this ”macroprudential” stuff should just be re-labeled “winning”! Easier to pronounce and much better describes what it actually is.

      It is freaking grouse, bro!

  2. The driver is the same everywhere.
    This will all stop when the Chinese money stops.

  3. wasabinatorMEMBER

    Any of you wishing upon a star for a SydMelb price crash, this is what will await your futures. And I say this as someone who just sold in Melb so no vested interest in saying it. Even if there’s a global crash again in the financial markets, the “arse end” position of our country in the global supply chain allows it to levitate long enough for it to just ride the next wave of stimulus before any crash hits us. Gen X onwards, pack your bags and take a hint!