Albany prices plunge in six months
Average house prices in Albany have plummeted over the last six months, as investors shy away.
The average three-bedroom sale price in the fast-growing North Shore suburb dropped 13.5 per cent, from $1.016 million in December 2016 to $878,000 in May.
The information from Point Marketing, based on sales by real estate agent Barfoot & Thompson, showed a steady decline over the six months.
Albany was compared with Greenhithe, which was holding steady at $1.26m, and Glenfield which was also steady on $845,000.
Peter Thompson, managing director of Barfoot & Thompson, said the decline could be seasonal.
Albany was a key place for investors to buy thanks to Massey University, but most investors would buy before the educational year started so they could get students in, he said. Thompson admitted investors had stopped buying at the moment.
Last year, the Reserve Bank introduced tougher lending restrictions that meant investors had to have a deposit of 40 per cent or more. Sheryl Campbell, manager of Bayleys Albany, said she had not seen prices fall in Albany but properties were taking longer to sell.
‘‘Instead of three to four weeks, it’s now four to six weeks on average. Sales [prices] are still stable.’’
She said Albany ticked many boxes for buyers.
New Zealand’s largest residential apartment block, is being built in Albany but the price of average sales has fallen for the suburb.