$50k market entry still exists – in Gore
susan.edmunds@stuff.co.nz
If you want a house for less than $50,000, you don’t have to travel back in time. But you might need to travel to Gore.
New Zealand’s median house price has jumped to a new record but there are still cheap properties if you know where to look.
The Real Estate Institute of New Zealand (REINZ) said the country’s median house price was $562,000 in May, up $27,000 on the year before.
Northland, Tasman and Manawatu¯ /Wanganui all reached record median prices.
In Wellington, Lower Hutt had a record median of $530,000 and Wellington City hit a record $736,000.
REINZ chief executive Bindi Norwell said: ‘‘Of the 16 regions in New Zealand, 13 saw an annual price increase – five of which were double-digit increases – showing that the demand for good property continues unabated.
‘‘Only three regions saw a yearon-year price decrease – Auckland, Gisborne and Southland.
‘‘The record median price achieved in Tasman ($612,000) has seen the region skip both Wellington and the Bay of Plenty to become the second-most expensive region in New Zealand in just a single month.’’
But data from Trade Me showed there were still affordable properties available around the country.
A ‘‘doer-upper’’ in Nightcaps, Southland, is listed for sale for $47,000. In Gore, a property needing ‘‘loving tender care’’ is listed at just under $50,000.
A two-bedroom bach in Selwyn is listed for $55,000.
A Gore real estate agent, who did not want to be named, said she had more buyers than sellers for property in the region. Prices had lifted about 10 per cent year-onyear, she said.
Even in Christchurch, a leasehold property was listed as ‘‘must be sold’’ and under $100,000.
ASB chief economist Nick Tuffley said whether those prices would rise in future would depend on things such as population growth in a region or any increase in household income.
‘‘Often when you have higher house prices, they are in areas where population is putting pressure on land prices,’’ he said.
‘‘Higher incomes mean greater ability to pay more for a house as well. These factors tend to be an influence. There’s a huge difference in the cost of living between a place where you can buy a house very cheaply and an inner-city Auckland suburb.’’
Auckland’s median price dropped 1.3 per cent from the same time in 2017.
The number of houses sold in May across the country was 1.3 per cent up on May 2017.
But once seasonally adjusted, the number of sales was at its lowest level since October last year.
The median number of days it took to sell a property increased by one day to 38 days.