'Modest recovery' continues in Auckland property market

Tuesday, 7 January 2025

A modest recovery in the Auckland housing market continued into December, according to Barfoot & Thompson.

The real estate firm estimates it sells about a third of Auckland homes, and reported its average sales price rose to $1,132,795 in December, up 4.7% on the November average and 0.4% on the same month last year.

“Sales numbers in December remained solid and prices remained positive,” managing director Peter Thompson said.

“While these prices are still well below 2021’s peak prices, they are ahead of those in the third quarter of the year when the market struggled as the economy came under pressure.”

Sales of rural and “lifestyle” properties north, west and south of Auckland came to life in December, he said, with their total sales value hitting a 2½-year record close to $80 million.

Thompson attributed that to lower mortgage rates.

The state of the economy had minimal impact on the sales of houses priced between $2m and $3m throughout the year, he said.

Retirement home operator Summerset meanwhile reported record sales of its units after a strong end to the year.

The company reported 361 sales during the three months to the end of December, taking total settlements over the year to a record 1238.

Chief executive Scott Scoullar told investors in a statement to the NZX it was an encouraging result to end the year “especially in such a challenging market”.

“The residential property market has been slow but despite this we’ve continued to grow.”

Summerset shares were trading marginally higher in late morning trading on the NZX, up 2 cents at $12.97.

BNZ is forecasting property prices will rise 7% this year, supported by a trend towards new listings largely finding buyers, rather than adding to the stock of unsold homes.

ANZ also believes house prices are stabilising and is picking prices to rise 6% this year, assuming the jobs market also stabilises in the second half of the year.