Author:Auckland Council Research and Evaluation Unit RIMU
This report provides an overview of Auckland’s housing market using a selection of indicators. It is designed to meet the government’s National Policy Statement on Urban Development Capacity 2016 (NPSUDC) monitoring requirements that require local authorities to be well informed about urban development activity and outcomes. This is achieved through the use of indicators on house prices, housing affordability and housing development. The report also includes information on business land and floor space.
The housing and business indicators must be considered within the context of Auckland’s housing market and national economic factors. New Zealand continues to experience strong population growth, particularly due to record numbers of immigrants, many of whom settle in Auckland. Nationally, unemployment is low, around five per cent. Mortgage rates remain low despite a recent increase in floating and two-year fixed rates, however, access to capital for housing construction and purchasing is tightening. Demand for housing is high, which is reflected in large sales volumes and increased average sales prices.
Summary of findings:
- Detached dwellings remain the dominant type of housing consented, which makes up more than half of the total number of dwellings consented
- The 12-month consents for attached dwellings have grown by 18 per cent at the end of September 2017 compared to the same period in 2016
- Three quarters of all consented residential dwelling growth is within Auckland’s urban area
- Average residential sale prices have declined in recent months
- Understanding the distribution of sale prices is important; there is major price variation by type and location
- Most residential properties (39%) are sold to individuals that own multiple properties
- Average rents vary considerably throughout Auckland and by dwelling type
- Large amounts of non-residential floor space has been consented.