Is Auckland’s property market recovering?

Auckland’s property market is showing signs of a recovery, despite the fact that prices have remained stagnant for months.

If these signs prove true, now could be the ideal time to buy property in the City of Sails. Let’s take a closer look.

Buyers return to Auckland 

The clearest sign that Auckland’s market is coming out of its slump is the high number of property sales in the city – 1,894 during the year to August, according to Real Estate Institute of New Zealand data. That’s 6.6 per cent more than the 12 months preceding that period, and the first rise since 2013.

While the median price in Auckland remained unchanged during the year, nothing drives prices up like high levels of demand so this could soon change.


There are positive signs for Auckland’s property market.

Signs of change

Strong buyer activity isn’t the only indicator that change could be about to come. BNZ’s chief economist Tony Alexander recently described a number of other signs that point in the same direction:

  • The Reserve Bank just cut its cash rate which will make securing a home loan cheaper and easier.
  • The capital gains tax has been scrapped.
  • Immigration continues at 50,000 per annum, most of whom are coming to Auckland.
  • Data shows that Auckland’s housing shortage is worsening despite the quadrupling of construction since 2011.
  • Some banks have reduced the test rates they use to gauge the ability of borrowers to service a mortgage.
  • The Reserve Bank is likely to ease further LVR rules in November.

All these signs may seem overwhelmingly positive, but the fact is, it’s unlikely that Auckland’s property prices will surge upward in the near future. Over the next two years, we’re far more likely to see a steady recovery.

That’s why if you’ve been considering buying property, now could be the perfect time to act. Get in touch with the team here at PTR mortgages to arrange mortgage pre-approval and start your search properly.

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