How Did The Auckland Property Market Perform In 2023
Well, it’s hard to believe we are at the end of another year in the Auckland property market.
2024 will mark our 14th year in the industry and we are very grateful to have lasted so long in such a turbulent industry. And this past year has certainly been turbulent!
Check out our summary below.
Auckland Property Market Performance in 2023:
The Auckland residential property market has experienced significant changes in 2023, with house prices and rents both seeing fluctuations. Here is an overview of what’s happened in the market over the past calendar year (please note, this is based on the most recent property data available from REINZ – October 2023):
- House Prices: As of October 2023, the median house price in Auckland is $1,040,000, up from $586,000 10 years earlier, representing a 5.90% increase per year. However, since the peak in November 2021, when the median house price was almost $1,300,000, house prices have fallen by 18.98%. In the 24 months leading up to September 2023, Omaha experienced the fastest-growing house prices in Auckland at 6% per year, while Panmure ‘grew’ at the slowest rate of -8% per year.
- Rents: The average rent in Auckland is $600 as of February 2023.
- Market Turnaround: Auckland’s housing market has been turning around, with prices increasing in 76 suburbs in the past three months as of September 2023. The market downturn affected both high-end and low-end suburbs, and early signs of an upturn are now visible.
- Interest Rates: Home loans in New Zealand have interest rates of at least 6.5% on new loans, up from about 2% in 2020. This has impacted the property market, with some homeowners and investors losing millions of dollars in wealth due to plunging property prices.
- Spring Surge: Analysts predict that the housing market will continue to improve, with prices rising in the traditionally busy spring season. CoreLogic found that prices have risen in the past three months in 269 out of 924 suburbs across New Zealand, including 13 in Auckland.
- Regional Performance: Auckland’s property market has been influenced by various regional factors. For instance, Auckland City has seen a 2.7% increase in average home values in the past three months, following a 1.3% increase in the previous quarter. We fully expect this to continue to increase over the next 12 months.
- Property Types: Different property types have experienced varying levels of growth. For example, apartments have outperformed houses in Auckland, with an increase in values by 15.2% over the past year, compared to 10.7% for houses.
- Future Outlook: Experts predict that Auckland’s property market will continue to improve, with prices expected to rise by 4.7% in 2024. This outlook is supported by low levels of available housing supply, which has contributed to a rise in values over the past year.
Auckland Property Market Conclusion
The Auckland residential property market has faced challenges in 2023, but there are signs of improvement and growth. With interest rates stabilising and the market turning around, we expect prices to continue to increase. We have seen a real change in the market in the past three weeks with very strong buyer interest at open homes and auctions – a great sign for the year ahead. Bring on 2024!
Thank you for reading and we wish you a wonderful holiday season!
Lisa and Steve Stone
Elite Agents for Ray White