Key Facts

  • Auckland experienced significant fluctuations in the property market in 2021, with a slow start followed by steady improvement.
  • There was a notable downturn in property sales at the beginning of the year, with long delays in sales and many properties passing in at auction.
  • Uncertainty around interest rates, inflation and the economy initially impacted the market, but understanding and acceptance of the new conditions eventually led to competition for properties increasing by July.
  • Auctions are seeing more activity with more bidders in cities like Christchurch, Wellington, Tauranga and Hamilton.
  • First-home buyers are showing increased presence on the auction floor.
  • Auctions were slow until around August/September, when success rate went from 20-30% to 70%.
  • More sales were seen in the $700,000 to $900,000 price range and an increased interest in small development sites.
  • Wellington is identified as a market to watch due to the growing popularity of auctions.
  • The average days on the market for Ray White auction sales was down to just 23 by August.

Article Summary

The property market in Auckland experienced a rollercoaster year in 2021, marked by significant highs and lows. Auctions were slow to take off in the early part of the year, with many properties passing in due to economic uncertainties and a slower market. Interest rates and inflation also had a massive influence on the market.

By mid-year, however, there was a noticeable improvement in the market. Acceptance of economic conditions resulted in increased competition for properties. Auckland began seeing more activity in their auction rooms, with first-home buyers becoming more prominent. By August/September, the auction success rate had risen dramatically from around 20-30% to about 70%. The rules relaxation meant people could get finance organized more quickly, leading to more sales across the country.

Wellington was identified as a market to watch, given the growing popularity of auctions in the region. The average days on market for Ray White auction sales, as of August, was down to just 23 days compared to private treaty sales that took twice as long to sell. This indicates a positive market position as properties are not sitting on the market for too long.

Overall, New Zealand’s property market has experienced considerable shifts in 2021. While the industry had a slow start in several areas, it rebounded significantly in the latter part of the year, suggesting a positive trend moving forward.

Source Link: To read the full article, click here.