New Zealand Real Estate Market Bucks The Global Trend

New figures from the New Zealand
Real Estate Institute show that the median price of a property in the country
has reached a record high.  The
continued strength of the Christchurch and Auckland property markets pushed
prices to a new high in June while the number of property sales has risen by a
sixth in the last year.

Here, we look at the buoyant New
Zealand property market.

Prices of property in New Zealand hit a record high

The Real Estate Institute figures
show that the national median sale price of a property in New Zealand rose to
$372,000 (£191,220) in June 2012, $2,000 above the previous record set in March
2012.

Helen O’Sullivan, Real Estate
Institute chief executive, said: “Keen buyer interest in Auckland and
Christchurch – which together make up about half of national activity – drove
the New Zealand real estate market to new highs in June and a new record median
price.

“The overall pattern for the rest
of New Zealand shows improvement in sales volumes, with prices on the whole
steady rather than up.”

However, O’Sullivan warned that
the market’s apparent strength is still far off the boom years in the mid to
late noughties.  She added: “Buyers
and sellers lost confidence during the global financial crisis and in that
context the current market should be seen as recovering rather than booming.”

The number of home sales in
Auckland climbed 15.7 per cent compared to a year earlier, while the medium
sale price rose 8.5 per cent. June 2012 saw Auckland maintain its record
$500,000 (£257,000) median sale price.

The figures come after a similar
report from real estate agent Barfoot & Thompson.  The company, which sells about one in three Auckland
residential properties, said the Auckland housing market had enjoyed its
strongest June in five years, with the average sale price hitting a record high.

Author Nick
Marr