Otago Daily Times

Otago hous­ing mar­ket hot in Septem­ber

- JA­COB MCSWEENY Zealand Herald ja­cob.mcsweeny@odt.co.nz Business · Stocks & Markets · Oceania News · Real Estate · Financial Markets · Finance · Otago · Queenstown · Queenstown · New Zealand · Auckland Region · Dunedin · Arrowtown

HOUSE prices in Dunedin and Queen­stown both in­creased dur­ing Septem­ber as Otago’s me­dian house prices hit a record high.

The lat­est Real Es­tate In­sti­tute of New Zealand (REINZ) fig­ures show the high­est num­ber of prop­er­ties were sold in Septem­ber across the coun­try com­pared with the past 42 months.

In Septem­ber last year, the me­dian house price in Otago was $489,000. Last month that fig­ure in­creased by more than 20% to $590,000.

Dunedin’s me­dian price in­creased to $568,000 — a record high for the city and 17% up on last year.

Sales vol­umes in­creased slightly on last year, REINZ re­gional com­men­ta­tor for Dunedin Liz Nidd said.

‘‘There are more in­vestors in the mar­ket than the same time last year as they are tak­ing ad­van­tage of the low in­ter­est rates from the banks.

‘‘Ac­tiv­ity lev­els are ex­pected to remain high through un­til the end of the year, par­tic­u­larly af­ter the elec­tion where we nor­mally see an in­crease in prop­er­ties com­ing to the mar­ket.’’

In Queen­stown, the me­dian house price reached $1,059,000 — up 12.7% on last year.

‘‘There con­tin­ues to be strong

in­ter­est from out­of­town pur­chasers, look­ing for a hol­i­day home, par­tic­u­larly in the up­per end of the mar­ket,’’ REINZ re­gional com­men­ta­tor for Queen­stown Lakes Gail Hud­son said.

‘‘The short­age of avail­able listings is ex­pected to main­tain

prices. Gen­er­ally, we see a slow­down in ac­tiv­ity be­fore an elec­tion. How­ever, that hasn’t been the case this year and ac­tiv­ity lev­els have re­mained buoy­ant.’’

The most costly house sold in Otago last month was a $5.4 mil­lion prop­erty in Ar­row­town.

Na­tion­ally, the hous­ing mar­ket was buck­ing the trend, REINZ chief ex­ec­u­tive Bindi Nor­well said.

While prices and vol­umes usu­ally paused be­fore an elec­tion, there had been record vol­umes and prices last month.

‘‘Nor­mally, one month out from an elec­tion, peo­ple start to take a wait­and­see ap­proach and sales vol­umes be­gin eas­ing off,’’ Ms Nor­well said.

She cited three fac­tors: record­low in­ter­est rates, con­sumers hav­ing ad­di­tional cash avail­able be­cause they could not go over­seas, and an up­lift in the mar­ket from re­turn­ing ex­pats.

She pointed to the 53% rise in Auck­land house sales dur­ing Septem­ber, which was ‘‘the high­est in 52 months and the high­est an­nual in­crease in sales vol­umes in 11 years’’.

‘‘The num­ber of res­i­den­tial prop­er­ties sold in Septem­ber across New Zealand in­creased by 37.1% from the same time last year, from 6112 to 8377 – the high­est num­ber of prop­er­ties sold in a month in New Zealand for 42 months since March 2017 and the high­est num­ber of prop­er­ties sold in a Septem­ber month for 14 years,’’ REINZ said.

The REINZ House Price In­dex for New Zealand, which mea­sures the chang­ing value of prop­erty in the mar­ket, in­creased 11.1% an­nu­ally to 3145, a new high and the first time the in­dex for New Zealand has gone over the 3100 mark. — Ad­di­tional re­port­ing The New

 ??  ?? Liz Nidd
Liz Nidd

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