PHOTO: CoreLogic
We’ve been asked a few times whether the dips in average Auckland property values lately reflect weakness in the top end of the market or the lower end. In fact, it’s not so much about high versus low value brackets within each area; it’s more about the areas themselves. The sluggishness of overall values has been centred in Auckland City and North Shore, with Rodney and Papakura as examples still increasing slightly. No real surprises there, given that affordability is the worst in the first two areas.
CoreLogic Senior Property Economist Kelvin Davidson writes:
Auckland’s average property value has fallen by 1.5% over the past year. That isn’t a full-on downturn, but given low affordability and high levels of listings (hence plenty of buyer choice), it’s not surprising that pricing is ticking down to get some sales over the line. This is something we’ll be keeping a very close eye on. But within that sluggish overall picture, we’ve been asked a few times about how the various segments of the market are faring, in terms of low value versus top-end properties. Are the highest value properties dragging down the market, or is the lower end the culprit?
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