Like most of the world, Auckland, New Zealand real estate prices dropped as a result of the 2008 GFC (Global Finance Crises). However, most of New Zealand fully recovered real estate market value by 2011. Long-time real estate expert, Mark Fourie at Bayley’s Real Estate, offers a quick guide to the Auckland residential real estate market.
Overview of Real Estate Market in New Zealand
Gaining a strong understanding of the national real estate market can help home buyers understand how Auckland stands out from other cities and areas. As a rule, Auckland is more expensive, but it is also a quickly appreciating market.
Also, one’s home buyer goals vary depending upon whether they are looking to invest in a rental property or reside in their purchased New Zealand home. The median house price for New Zealand is currently at $597,000 (https://www.reinz.co.nz/residential-property-data-gallery) with Auckland at $848,000.
The Popularity of International Buys
New Zealand is a popular vacation and retirement spot for people across the globe. Many international residential buyers obtain a resident visa in order to purchase and inhabit their New Zealand home.
As a general rule, regulatory bodies strongly encourage foreign buyers to work with experienced real estate professionals like Mark Fourie.
Legal Restrictions to Real Estate Purchases in New Zealand
Not all aspiring New Zealand home buyers are eligible. It is best to consult with an experienced real estate agent to fully understand what qualifies someone to buy a home. Residents of New Zealand, as well as neighboring nations like Singapore or Australia, are most qualified. Foreigners (as noted above) should first earn a resident visa before attempting to buy a home.
Financing a New Zealand home requires buyers to work with a New Zealand bank and provide as much as 30% up front. For those buying as foreigners, the legal and transfer fees can be high if one is trying to buy solo. In contrast, Mark Fourie has been able to put buyers in touch with the best advisors to help lessen the effect of these fees.
Real Estate Market by Regions
At the risk of stereotyping, generally (Some exceptions) residential property in the South Islands of New Zealand are typically less expensive/valuable than the northern island cities. For example, Christchurch city (Canterbury) properties have a median house price of $475,000 (REINZ) almost half the value of the Auckland median price of $848,000 (REINZ).
Overview of Residential Real Estate Market in Auckland
The median house price is highest in Auckland — but when you look at affordability, taking into consideration average income Tauranga is ranked more expensive, even though it has a median house price in the $600,000’s compared to Auckland which is in the $800,000’s. But high prices can also indicate stronger investments for those looking to see their home appreciate over time.
Factors that are Driving Fast Growth in Auckland, New Zealand
Of all cities in New Zealand, Auckland is the fastest growing in terms of residential real estate development and overall population growth. Why is this the case?
First, most of New Zealand’s top jobs are there. In a sense, it is the Pacific’s version of the Bay Area, California in the United States. Thousands of families have relocated to Auckland in the last ten years to better their career. In addition to the jobs, Auckland is home to approximately one third of the population of New Zealand and attracts 75% of new migrants.
Aside from being a job rich city, it is also one of the Pacific’s most picturesque cities. Residents love the environment, retirees from all over the world long to relocate there, and thousands more vacation to Auckland.
Lastly, Auckland is in many ways the life of New Zealand. It is overflowing with culture, nightlife, and atmosphere, and is far less crowded than one of closest sister cities Sydney, Australia.
Cost and Availability of Utilities in Auckland
For those unfamiliar with residential life in Auckland, there will be some unique aspects to the way utilities work. Most of these unique aspects are wholesome. For example, locals use energy generated mostly from renewable sources, like wind, hydro power and more recently solar power. Recycling is also big in Auckland, and as such, maintains a society with a relatively low carbon footprint.
Mark Fourie, as a lifestyle and sales agent, frequently helps acclimate his clients to the way that Auckland utilities work. On the one hand, gas heat and cooking are quite common (like in most first world countries). But locals are also fond of wood burning sources of heat. As such, those looking at homes need to understand how the home is built to disseminate heat. This will determine whether heating costs come from paying for gas or dry firewood.
For water, homes inside city limits generally have very clean, ready-to-drink tap water. During the summer months, councils may become concerned about the availability of clean water and implement some restrictions. However, homes outside the city may collect rainwater through various means.
Understanding Land Information Memorandum (LIM) Reports
Those seriously interested in Auckland residential real estate should frequent the Auckland Council website. One can order LIM Reports on any property that they are interested in. A LIM Report reveals any information collected on the property, to include environmental issues, potential hazards, requisitions, access to utilities, and more.
While these reports can be highly technical, working with a real estate expert can help you understand any aspects of the property that could incur greater risk.
Mark Fourie is a lifestyle and real estate sales agent for Bayley Real Estate Limited of South Auckland, New Zealand. Because every person’s home buying goals are different, he thoroughly enjoys guiding home buyers with unique needs and desires. For more information, find Mark on LinkedIn.
The views and opinions expressed on this Website and the associated Links are of Mark Fourie only and do not represent the views and opinions of Bayleys Real Estate. Any content, information and any materials provided on this site are done so by Mark Fourie and makes no guarantee, expressed or implied, as to its accuracy, completeness or timeliness, and shall not in any way be liable to any recipient for any inaccuracies, errors or omissions.
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