Homebuyers should expect to pay a hefty price if they plan to buy homes in Auckland, as the city ranked as the fourth most expensive housing market in the world, according to a survey.
The 2017 Demographia International Housing Affordability Survey listed the city just behind Hong Kong, Sydney, and Vancouver for the priciest residential properties. The poll based its ranking on Auckland, as the median home price costs around 10 times more than the median income.
A separate survey revealed that company CEOs also tagged affordable housing as the fourth biggest factor affecting business confidence in Auckland. While they agree that home prices affect business decisions, not everyone is sure if it’s a good idea to intervene in price growth. Only 41% of respondents believe that something must be done to curb high prices, while 55% were against the idea.
For real estate investors, however, high home prices in the city mean a greater chance of gaining a profit from a property sale. Simple renovations like wall or garage cladding can further uplift a property’s value. As home ownership rates decline in the city, the chances are high for sellers to close a lucrative deal.
Rising Prices Elsewhere
Auckland’s housing market may be high-priced right now, but homes in Fordlands, Rotorua, registered the biggest year-over-year price growth in September. The median price in the community rose 36.1% to $181,003 from $132,997 in the same month last year.
If you own a house in Taumarunui, the median home price there increased 35.12% to $103,390 from $76,515 year over year. Based on these figures, some areas in New Zealand are indeed a seller’s market.
Rising home prices are a boon for property investors, although it means that more buyers may be further locked out of the market in the country.