RISE OF THE $2M SUBURBS
Even previously snubbed suburbs show meteoric price jumps.
Soaring house prices have seen a second Auckland suburb click over the $2 million mark, with only five suburbs left with an average price under the $500,000 considered affordable.
Figures due for release tomorrow in the QV quarterly Property Report show the exclusive waterfront suburb of St Mary’s Bay has joined swanky neighbour Herne Bay in the $2m club.
St Marys Bay had been on the cusp of an average house price of $2m for months and reached $2,055,350 in June. It has since risen to $2,070,200.
“Like Herne Bay, it features not only spectacular harbour views but some large historic homes,” Andrea Rush from QV said.
“It is less than a 10-minute drive to the city centre, is serviced by very good public transport and it’s an easy walk to the Ponsonby shopping and cafe precinct.”
The next suburb to reach $2m is a tightly contested battle between Remuera, Stanley Point on Auckland’s North Shore and Epsom, which are all hovering around $1.8m.
The QV data also reveals a staggering 90 Auckland suburbs out of 210 have an average price of more than $1m. The average price in Auckland is $992,207, according to qv.co.nz and should hit $1m soon.
Values across the city have been increasing by 15 per cent year on year.
House prices have long been described as being at crisis level and many Aucklanders have reportedly left the city because of it.
In 2007 there were 80 suburbs with an average value under $500,000.
Now there are just five with two of those — Grafton and Manukau — just a few hundred dollars away from hitting the mark. The others — Wellsford and Parakai — are a long commute from Auckland and have poor transport links.
Auckland Central’s average of $472,500 is only low because of the high level of apartment stock.
The new figures come three months after Prime Minister John Key said there were “quite a few” homes available being advertised online in the Auckland $500,000 or less.
A review of Trade Me discovered 1253 listings, of which just 345 were houses, including a fifth which were homes for relocation or removal.
And on Friday, Key told Auckland would-be first-home buyers they should look to buy apartments, as growing numbers do in Australia.
In the new QV data, more than 16 suburbs had seen growth of more than 100 per cent since 2007.
Rush said growth was strong in suburbs around good school zones, particularly on Auckland’s North Shore. “Previously lower valued North Shore suburbs of Forrest Hill, Sunnynook and Hillcrest have seen a meteoric rise of more than 100 per cent since the previous peak of 2007, well above the Auckland average since the GFC [global financial crisis],” Rush said.
“These suburbs are particularly popular with Chinese buyers, including new migrants keen to gain entry into the prized Westlake Boys’ High School zone and this demand is reflected in the high value growth there.” The previously affordable suburbs of Glen Innes, Wai o Taiki Bay and Point England had seen staggering growth of around 126 per cent since 2007.
Rush said the leap in value in the east Auckland area could be explained by the Tamaki Regeneration Project, which will see 2800 state houses transformed into 7500 new dwellings over the next 15 years.
Barfoot & Thompson director Kiri Barfoot said it was no surprise the Auckland market had risen so dramatically, citing weekly migration to the region of about 800 people.
But recent signs indicated the heat was coming out of the market and activity was starting to slow. “We have had less people at some auctions and to open homes and others see that and it sends a wait and see message,” she said.
She added recent changes to the LVR had cut some people off but suggested it might only be for the short term.