Manukau Market Wrap

Nationally, the stock availability continues to decline as expected in Winter. The volume of sales in June was not surprising and fell in June by -3.8% from the same time last year to 5,978 according to the latest data from the Real Estate Institute of New Zealand. In Auckland, the number of properties sold in June fell by -3.2% year-on-year .

There's less competition

With the lowest number of new listings for the month of June since listings records began, Auckland saw the lowest number of properties sold for two months continuing the trend we’ve seen for a few months now. Sale prices seem to have stabilised and all in all, with the lack of new listings, open homes and buyer activity is actually pretty good. The pool of buyers is still the same, there is just less to look at.

Manukau's median sale price compared to Auckland's

The median sale price for Manukau is $680,000 last month and take a 12 month average, this figure sits at $675,000 - down 2% last month however if we look at a 5 year average, this median increased to 8%. Across the country prices are still climbing, but the rate has slowed. The median sale price in Auckland remains steady with an 0.1% increase last month and over a 5 year average, has risen 7.2%.

Manukau's median days on market compared to Auckland's 

For Manukau, this number is 45 days and take a 12 month average, this drops to 39 days. The median number of days to sell a property in Auckland increased in June by 5 days from 40 to 45 - compared to the same time last year.

In summary

When do we expect to see the market come back? That’s a prediction well out of my pay grade but all the underlying factors are still in play, housing shortage, low interest rates, immigration etc. And to be fair - we are 3 years into the flattening, here in Auckland anyway. Volume started dropping in 2015, prices started to, or arguably did plateau in 2016, we’ve had a wee fall and they appear to have plateaued again now in 2019. They say on average a 4 year turnaround.Residential property sales activity looks set to tick along at the same controlled pace in the second half of the year as it has in the first, with average values growing in a restrained fashion. Other key factors to watch over the rest of 2019 include policy decisions from the Reserve Bank (e.g. LVR and bank capital rules), the landscape for investors’ returns, the potential flattening off of residential building consents, and how buildings insurance premiums might change due to risk based pricing.

Manukau features as one of the suburbs that are among the 10 New Zealand suburbs and towns that have the most potential for growth in new residential dwellings, according to research from Colliers International.

Pete Evans, Colliers national director of residential project marketing, says the focus in 2019 has shifted to the supply of affordable homes and regeneration of traditionally less expensive suburbs.

“Investment in these suburbs through new development and infrastructure will invigorate these areas and create more desirable places to live with continued growth potential,” he says.

The "Golden Triangle" centres of Hamilton, Tauranga and Raglan – along with the Auckland suburbs of Onehunga and Westgate - remain among the pick of top growth areas for the second year in a row.

At the higher end of the market, Auckland’s Wynyard Quarter is expected to experience continued improvement in the lead up to Apec in 2020 and The America’s Cup in 2021.

SO WHY MANUKAU?

Manukau is one of three centres outside of CBD that Auckland Council has prioritised for growth through to 2050 and is expected to undergo significant change.

The Transform Manukau project involves major investment by council and central government and covers 600ha of land including the metropolitan centre and Wiri suburban area to the south.

This will regenerate the town centres at both Manukau and Wiri, support substantial residential and commercial development and focus on improving services such as healthcare and schooling, as well as increased tertiary education presence in the area.

Transportation improvements include a new integrated rail and bus station, upgrades to Great South Road, a mass transit route from the airport to Botany via central Manukau, and creation of a comprehensive cycle network. The Auckland suburbs of Onehunga, Northcote, Manukau, New Lynn and Panmure are primed to defy the city's housing market slowdown.

Source

The Monthly Property Report from REINZ, has shown the median house price for New Zealand rose 1.8% in March 2018 to reach a new record high of $560,000 up from $550,000 in March 2017 .

The number of properties sold in March around New Zealand fell by 9.9% when compared to the same time last year with 7,768 properties sold in comparison to 8,622 in March 2017 which was the highest month for sales volume in 2017.

The March statistics on the left relate to Manukau and the data on the right relate to Papatoetoe.

Read more here: https://www.reinz.co.nz/residential-property-data-gallery