Auckland property prices up by over three-quarters in last decade

Research by New Zealand estate agent Barfoot & Thompson shows that the average price for a three bedroom home in Auckland has risen by 78 percent in the past decade.

While there has been strong capital growth across the 10 years, though, price gains have not been spectacular, particularly in the past five years.

 “While this represents a solid return for those who have committed to home ownership over that period the level of increase is in line with the returns achieved from other forms of investment during a similar period,” comments Managing Director Peter Thompson.

“What the analysis points out is the significant variation in price increases that have occurred across different areas of the city, and that the price rise over the past five years is only a third of the price growth experienced between 2003 and 2008 – 17 percent compared to 51 percent.”

Mr Thompson said the areas where the average price had increased the most in the past decade were Central and West Auckland.

“For the Central area the price of a three bedroom home has increased by 102 percent to $653,000, while West Auckland three bedroom homes have doubled in price to $449,000."

"The attraction of the Central area is its well established infrastructure and its closeness to the central business area."

“In West Auckland’s case, buyers have recognised property in the area represented value for money, offered lifestyle choices and saw there would be improved access to the central city through the development of rail infrastructure."

 “At the other end of the spectrum, the average price for a three bedroom home in Franklin and rural Manukau increased by 58 percent in the past 10 years, and now stands at $449,000."

“This area retains its rural heritage and represents lifestyle options that have disappeared from many other Auckland locations as the City has grown."

"As transport infrastructure improves between the City and the south, greater buyer attention is likely to be refocused south.”