Record profits reaped by property owners and investors revealed

PHOTO: NZ Housing Crisis. Image – Newshub/Getty

People who sold Auckland and Wellington houses late last year pocketed a median profit of close to half-a-million dollars.

Property analyst firm CoreLogic, which has been tracking the market since the mid-1990s, says there’s never been a more profitable time.

“It’s not surprising because we know prices have been rising for a pretty steady period of time – go back 10 or 15 years really, the New Zealand housing market has been on an upswing,” senior property economist Kelvin Davidson told Newshub.

“If anything, it accelerated at the end of 2020… the acceleration we saw in the property market at the end of last year was pretty stark. Basically anybody reselling – especially if they held for five, 10 or 15 years, was almost certain to get a price higher than what they paid.”

In Wellington, the median profit was a whopping $445,000 – enough to have bought the average house outright as recently as 2014. In Auckland, it was $406,000; Hastings, $365,000; Queenstown $340,000; Hamilton, Dunedin, Palmerston North, Nelson, Napier and Tauranga were around $300,000; Invercargill $180,000; and Christchurch, which has experienced lower house price growth after the quake rebuild, $153,000.

The smaller centres also had sellers swimming in cash – the median profit in Gisborne was $326,500, Rotorua $280,000 and Whangarei $253,000.

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