New Zealand Property Investors' Federation

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20-07-2017

Massey University June Home Affordability report

  1. News
  2. 2017
  3. July

The latest Massey University Home Affordability Report shows most regions of New Zealand have declined in affordability over the most recent quarter, as well as over the past 12 months.

The only exceptions are Otago (which excludes the expensive Central Otago Lakes region), which improved by a modest 1.9 per cent over the most recent quarter, and Canterbury/Westland, which showed a 0.5 per cent improvement year-on-year.

The report, which covers the period from March to May 2017, shows a nationwide increase of 9.1 per cent in the median house sales price over the quarter, contributing to an annual increase of 6.8 per cent.

“Some of the regions are surging past Auckland as a percentage change,” says report author Associate Professor Graham Squires from Massey’s School of Economics and Finance. “Year-on-year median house prices in Northland have increased by 28.3 per cent and in Nelson prices are up 21.8 per cent. This compares to a 3.7 per cent increase in Auckland.”

KEY POINTS

  • Nationwide, median sales price shows a 6.8 % yearon-year increase, with a 9.1% increase this quarter – contributing to a year-on-year decline in national affordability of 8.2%
  •  Nine regions surpass Auckland/Thames/Coromandel (3.7%) annual price increase – Northland (28.3%), Waikato/Bay Of Plenty/Gisborne (17.0%), Hawkes Bay (19.7%), Manawatu/Wanganui (16.9%), Wellington (14.0%), Nelson/Marlborough/Kaikoura (21.8%), Otago (13.0%), Central Otago Lakes (7.5%), and Southland (14.8%).
  • Canterbury/Westland (0.6%) and Otago (0.1%) regions show slowest quarterly rate of median house price growth, set against Southland surge in quarterly values ($31,000) and percentage change increase (14.8%).
  • Canterbury/Westland has a year-on-year median house price decline of $8000, and a modest increase of $2500 this quarter. • Central Otago Lakes, including Queenstown (41.7 Index Points), continues to surge past Auckland/ Thames/Coromandel (36.4 Index Points) in the index as the most unaffordable region in New Zealand.
  • House price to wage ratios demonstrate that Central Otago Lakes region has median house prices 15.2 times annual wages, and the Auckland/Thames/ Coromandel region has median house prices 13.3 times annual wages.

Read the full report here

Tags: home affordability - massey affordability