The media has recently reported a fall in both the number of residential St Heliers’ Real Estate sales, and their average price. According to Television New Zealand, prices fell by 8% in December and rose half a percent in January. The result has been blamed on the holiday season.
It was a surprise because that does not correlate with my knowledge of St Heliers’ Real Estate. It conflicts with the evidence at Zoodle which is part of the New Zealand Real Estate web site.
That site is the official web site of the New Zealand’s real estate industry and is 100% New Zealand owned. At any one time the web site represents over 93% of all properties currently being marketed by property consultants.
Zoodle shows a 3% increase in the median sale price for St Heliers Property. The demand is there. The median time to sell a residential property has remained low, and is 27 days at present. This comes at the same time as a 42% drop in the number of buyers viewing St Heliers’ Real Estate and a 34% decrease in the supply of properties coming onto the market in St Heliers.
In Glen Innes, a nearby suburb, the median sale price of residential property has fallen by 1.6%. It takes a median time of 45 days to sell a property and there has been a 62% decline in the number of buyers viewing properties. Few Glen Innes properties have come onto the market, which is no surprise.
The media take a broad brush approach to property data in New Zealand. This is to be expected. The media lack the time and resources to report on each suburb thoroughly.
Things can change very quickly in real estate. A few days after the media reported a real estate downturn, the New Zealand Herald reported the New Zealand Government predicted a boom year for house builders. According to their report, builders will put up 18,000 to 20,000 new buildings this year. The Department of Building and Housing announced recently that the recession is over for house builders. They added that the slump has bottomed out and housing consents have been rising.
Auckland will have the most building consents because a third of New Zealand’s population lives here. Where in Auckland and in what sectors will the new building take place? In the last boom an enormous number of apartments were built. This time could be different.
Auckland is to combine its smaller Councils into a Super City Council. Each of the smaller councils have their own sets of property standards. Upon amalgamation into a single Council, many rules and regulations related to real estate development will change so that they are the same for all of Auckland.
One potential change might be in the pool of available development land. Auckland City’s peripheral land remains protected from development by regulation or by the sheer expense involved in developing it. If these laws and regulations change, it will affect the value of that land.
There is conflicting information given to buyers by different sources. Buyers should carry out their own research on St Heliers’ Real Estate. Zoodle and the New Zealand Real Estate web site are good sources for information.