Auckland is becoming the hottest property market in the world. A third of the population (1.3 million people) of New Zealand are now living in the city of sails. The QV House Price Index for August saw the average value for homes in the Auckland region reach a new milestone by topping $1 Million – $1,013,632 to be exact.
This is a huge increase from the average house price of $500,000 ten years ago. New Zealand has the second highest rate of house price inflation in the world at 11.2%, according to Knight Frank’s Global House Price Index. Only Turkey had a higher house price inflation of 13.9% with the average of all other countries standing at only 4%.
So why is Auckland such a hot property market? Auckland is the hub of employment, if you want to get ahead in your career you may consider moving there as it is New Zealand’s most populous and global city.
It is also undoubtedly a beautiful city situated on the Waitemata Harbour. It poses as an attractive city by being a hot spot for career opportunities and always being within a close proximity to beaches no matter where you are in Auckland. Auckland has a sub-tropical climate with warm summers and mild winters. It is the warmest main centre of New Zealand and is also one of the sunniest, with an average of 2,003.1 sunshine hours a year. Increasing immigration of 69,000 in the year to July 2016 is also a contributing factor to the rising house prices as this means more homes are needed fast.
So who is buying these million dollar homes? Increasingly, not New Zealanders. Foreign investors are now making up 50% of buyers in New Zealand according to Core Logic. This is a large increase from 37% of buyers in 2012 with a significant portion of these buyers being Chinese.
So with the growing amount of jobs that Auckland has to offer and the increasing amount of migration to New Zealand but more particularly Auckland, we can expect the housing boom to continue for the foreseeable future due to a shortage of supply.
Could now be the perfect time to invest in a property in Auckland? As experts in the Auckland property market, the team at Metro NZ can help you secure a successful investment property that will maximize returns. Call or email us to see how we can help.