Global Property Guide

Financial Information for Residential Property Buyers

Trend: house prices up 4.3% y-o-y in Q2 2018

New Zealand's house prices are rising again, after falling in the previous quarter, despite the introduction of new lending restrictions in October last year and worsening affordability. 

Median house prices rose by 4.3% (inflation-adjusted) during the year to Q2 2018, from a y-o-y decline of 3.37% in Q1 2018 and annual rises of 4.92% in Q4 2017, 0.04% in Q3 2017, 3.99% in Q2 2017 and 7.26% in Q1 2017. On a quarterly basis, house prices increased strongly by 5.24% in Q2 2018.

Analysis: Demand is stable. 

The number of dwellings sold in New Zealand increased slightly by 0.7% y-o-y to 5,661 units in July 2018, in contrast with an annual decline of 18.1% in 2017, according to the Real Estate Institute of New Zealand (REINZ). In Auckland, dwelling sales rose by 2.1% over the same period. 'Days to sale' rose by one day to 37 days y-o-y in July 2018.  

The number of properties available for sale dropped 3.8% y-o-y to 21,288 units in July 2018. 

New Zealand’s strong economy continues to fuel demand for good properties, amidst low number of listings. 

Rents, rental yields: Good yields at 5.48%

Apartment costs in Auckland are around $7,209 per sq. m. 

New Zealand: city centre apartment, buying price, monthly rent (120 sq. m)
  Buying price Rate per month Yield
Auckland $ 412,571 $ 1,885 5.48%

Recent news: New Zealand's economy is expected to expand by 2.9% this year and in 2019, following growths of 3% in 2017, 4.2% in both 2015 and 2016, and 3.2% in 2014, according to the IMF. Recently, the Reserve Bank of New Zealand (RBNZ) left the official cash rate (OCR) unchanged at a record low of 1.75% in August 2018, in an effort to promote sustainable employment and maintain low and stable inflation.