Author:Auckland Council Research and Evaluation Unit RIMU
This report provides an overview of Auckland’s housing market using a selection of indicators. It is designed to meet the government’s National Policy Statement on Urban Development Capacity 2016 (NPS-UDC) monitoring requirements that require local authorities to be well informed about urban development activity and outcomes. This is achieved through the use of indicators on house prices, housing affordability and housing development. The report also includes information on business land and floor space.
The housing and business indicators must be considered within the context of Auckland’s housing market and national economic factors. New Zealand continues to experience strong population growth, particularly due to record numbers of immigrants, many of whom settle in Auckland. Nationally, unemployment is low, around five per cent. Mortgage rates remain low despite a recent increase in floating and two-year fixed rates, however, access to capital for housing construction and purchasing is tightening. Demand for housing is high, which is reflected in large sales volumes and increased average sales prices.
Summary of findings:
• A total of 7,772 residential parcels were created in 2017.
• Nearly 60 per cent of new residential parcels were created in the last two quarters of 2017.
• In 2017, a total of 10,866 dwelling units were consented. Over 40 per cent of these dwelling units are located in the Hibiscus and Bays, Rodney, Upper Harbour and Waitematā local board areas.
• Approximately 80 per cent of the dwellings consented in 2017 are located within the Urban Area 2016.
• A total of 7,943 dwellings were issued with a Code Compliance Certificate in 2017.
• Hibiscus and Bays and Upper Harbour Local Board areas have seen the largest number of CCCs issued in 2017.
• Both average and median residential sales price growth flattened in 2017.
• Median residential sales price has dropped to $805,000 in the fourth quarter of 2017.
• Most residential properties (42 per cent) have been sold to multiple-property owners.
• The Serviceability Affordability Model (SAM) suggests that housing affordability is eight per cent less affordable compared to 2006.
• Residential rental prices have increased by six per cent in the fourth quarter of 2017 compared to the same period in 2016.
• Business land and floorspace supply continues to increase, especially in the Waitematā and Māngere-Otāhuhu local board areas.
• The amount of Office space is expected to rise due to increase in supply
• Stronger demands from all types of industrial activities are anticipated to steadily absorb vacant floor space.