“November showed an active market where property prices continued to increase, stimulated by demand as New Zealand prepared to leave Alert Levels behind,” she said.
In response, the median property price in Auckland increased 26.2% annually from $1,030,000 in November 2020 to $1,300,000 in November 2021 — another record median. In fact, all seven Auckland districts enjoyed an annual median price increase.
Interestingly, Baird says she believes that FOMO (fear of missing out) is beginning to dissipate, citing that the enduring strength of property prices means some vendors may be less inclined to act now, without fear of missing their preferred prices later. “While the supply versus demand imbalance continues to push prices upwards, across New Zealand, inventory levels increased 5.1% annually, and listings increased 9.0% — providing buyers more choice and giving reluctant sellers confidence that if they take their current property to market, they will be able to buy their next one.”
Despite steady growth, Baird says headwinds are gathering. Government measures to moderate the New Zealand property market, the Reserve Bank’s OCR increases and growing challenges around financing as banks tighten their lending criteria are aligning. While the longer-term impacts of these changes will play out over the coming months, Baird suggests that the strength of the market will cause the growth trend to continue – albeit with a more moderate trajectory.
In November, the number of properties sold in Auckland decreased by 19.6% annually — from 3,857 to 3,102. The silver lining is that there was a significant increase of 16.0% in properties sold month on month. The rise in activity reflects a market that is rebounding, says Baird. “November saw an annual increase in listings of 10.4% and, following low listings in the previous months, there was a resurgence of activity, with more properties coming to market as Auckland prepared to move from Alert Level 3.”
Last month, Auckland recorded the highest percentage of auctions since records began in 2005, accounting for 52.1% (1,616) of properties sold compared to 43.0% in November 2020. Baird says that the trend towards auctions has long been at play in the New Zealand property market — although this has been expedited somewhat by the COVID-19 lockdowns. “Vendors increasingly see auctions as a clean and effective method of selling that provides open market transparency in an uncertain market,” she says.
This is particularly true in the suburbs and the marketplace Damerell Group operates. Competition remains robust, and emotions are running high, with good properties often surpassing vendor expectations on the night. Our November Auction statistics back this up, with 8% of auction properties sold prior and 80% sold under the hammer. We are incredibly proud that our team continues to excel and outperform our competition in this method of sale, making Damerell Group the go-to choice for vendors looking to achieve the very best price for their property in any given week.