The number of houses, flats and apartments valued under $400,000 in Auckland dropped by a third in the past 12 months.
In some areas the total in that price bracket has more than halved.
Data from CoreLogic’s E-Valuer showed that of the 656,500 properties valued in that price bracket across the country, just over 62,000 were in Auckland.
A year ago there were 91,000 in the city – a drop of 32 per cent.
CoreLogic research and analytics director Jonno Ingerson said the drop was most significant in North Shore and Waitakere, where the number of properties in the $400,000 or less price bracket had fallen 55 per cent.
“Clearly the number of properties worth less than $400,000 has dropped – and, in Auckland, quite dramatically,” Mr Ingerson said.
“But a corresponding drop in the number of sales does not mean that the bottom of the market has fallen away, just that there are fewer to buy.”
Number of city’s sub-$400k properties dwindle by a third
You can pick up a historic Auckland city building valued for its early 20th century Chicago-styled architecture but with a modern and contemporary heart.
The fully leased General Building at 29-33 Shortland St has been placed on the market by its owners, John Courtney, founder of Shortland Management Ltd, and his partner, Michelle Deery.
The nine level building dominating the corner of Shortland St and O’Connell St is home to several leading professional businesses and generates net annual rent of $1.77 million with a weighted average lease term of 4.7 years.
Chicago style for sale on Shortland St
Not far down the road (Around the corner in fact) An inner-city apartment is on the market for $44,850 — less than the average price of a city carpark.
The 32sqm studio flat behind the historic Railway Station building is being touted as one of the cheapest in the city.
“The apartments are very basic but the Railway Station Building itself is stunning,” agent Daniel Horrobin said.
Similar apartments in the 230-unit complex had sold “sight unseen” because buyers were willing to take a risk on the low price.
Horrobin said the apartment rented for $280 a week and cost just over $10,000 in annual body corporates fees, ground rent and council rates. “It’s a net return of 10-15 per cent, which is about the best you can get,” Horrobin said.
The apartment block was tacked on to the back of the building and had a troubled past. Co-agent Mitch Agnew said it was once referred to as “leaky and leasehold”.
Auckland CBD studio going for $45,000
Reserve Bank restrictions on low deposit lending were supposed to be a temporary feature of our housing market when they were introduced in October, but nine months on their authors appear reluctant to let go of one of their few monetary tools to control soaring house prices.
Central bankers are convinced their limits on lending to those with less than 20 per cent deposits have helped slice between 2.5 and 3.3 per cent off house price inflation figures across the country.
While some economists are less certain the LVRs are working, the central bankers will be pleased they have achieved this without pushing the already-high value of the New Zealand dollar.
LVR: Here to stay?
Evidence is accumulating that the housing market has turned. Is it a temporary hiccup caused by the Reserve Bank’s imposition of restrictions on high-LVR lending and higher interest rates, with the market set to soon rebound to new highs? Or is it the beginning of a crash?
The housing market is a tricky thing to predict, but the truth probably lies somewhere in the middle.
Let’s examine the evidence that things are slowing. REINZ data shows national house sales are running around 12 per cent lower than a year ago, and nearly 14 per cent lower in Auckland. House price inflation tends to follow sales with about a three month lag, so it is not surprising that QV data shows annual house price inflation has steadily eased since its peak of 10 per cent in December last year, and the monthly numbers show prices have all but stopped rising. In addition, the value of mortgage approvals is now declining, according to Reserve Bank data.
Is this the beginning of a crash?
Monday Property News | Affordable Homes.