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 (NPS-UDC) 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 floorspace.
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:
- Between January and March 2018, 1656 residential parcels were created
- 65 per cent new residential parcels were in Mixed Housing Suburban zone or Mixed Housing Urban zone
- Number of dwellings consented reached an all-time high; the 12-month rolling total is 11,192
- A total of 2425 CCCs were issued
- Quarterly median residential sales price increased $5,000 to $810,000
- More dwellings were sold between the $600,000 and $800,000 price range
- Housing affordability improved as a result of recent decline in residential prices and low interest rate
- Regional median rental price of a three bedrooms house remains at $570 per week
- 93 business parcels were created and 103 non-residential building consents had been issued
- Vacancy rate of office floorspace has risen by 0.8 per cent at the end of 2017 and it is expected to rise further in 2018