Market Overview

It has been well publicised that the New Zealand property market has undergone a considerable correction from the highs of 2006/2007.  2008 was a particularly slow year with values falling noticeably, there was however a considerable recovery in values during late 2009 in Auckland.  The marketplace at the present time is again recording very low sales volumes, with July 2010 reportedly having the lowest number of nationwide sales for over 10 years.  Auckland however is resisting this trend.

Although numbers of homes being sold is very limited by comparison to previous years property prices in the central Auckland suburbs remain stable and with limited numbers of properties currently for sale, this shortage is likely to see prices rise mildly as demand is comparatively buoyant.  We do not however expect values to outstrip general inflation in the near future.  We consider that the medium term outcome can be viewed as reasonably stable with potential for mild capital gain with good quality property. 

The market sector enjoying the best demand can generally be characterised as family homes close to the City centre while the inner city apartment market remains in an over supply situation and sales are showing continuing discounting from previously achievable levels.