Have $850k? Here’s what it gets

The median house price around the country is now well over $800,000, but what that price can buy varies depending on where you are, finds Miriam Bell.

Lockdown has not put a dent in prices. The latest Real Estate Institute figures showing the national median sale price was up by 25.5 per cent year-on-year to hit a new record of $850,000 last month.

The ongoing price rises come despite the Reserve Bank tightening loan-to-value restrictions, the Government introducing new tax policies to rein in investors, and mortgage rates starting to move up.

Real Estate Institute chief executive Jen Baird says the latest lockdown has not dampened demand for, nor confidence in, the housing market.

‘‘We have heard from across the industry that prices achieved on sales completed in the early part of this lockdown continue to illustrate an ongoing excess of demand over supply; prices are still rising.’’

The availability of properties for sale is limiting activity, she says. There was just 12,249 on the market last month, the lowest level of inventory ever seen.

Lack of supply is considered to be a key driver for strong sale prices, but Baird says the industry expects to see an increase in listings in the spring.

The latest ASB housing confidence survey shows most New Zealanders expect prices to increase over the coming year, but property commentators are predicting the market will slow down.

But, in the meantime, what does the current national median house price of $850,000 mean for aspiring home buyers?

Homes.co.nz chief data scientist Tom Lintern says it is worth remembering the median price sits in the middle of the pack, so half of all sales are for below the median.

Auckland and Wellington have higher median prices, so if they are excluded from the figures the median price is lower again, he says.

‘‘The point is there are properties for sale around the country for below the national median, and there are different options that you can buy for the national median price, depending on the location.’’

Here are a selection of properties from around the country, which are currently listed for sale online in the $850,000 price range.

Auckland

The Real Estate Institute put the Auckland region’s median price at $1.2 million in August. But the size of the market and its current building boom mean a range of properties are listed at the $850,000 mark.

Apartments and townhouses, many of which are new builds, make up a sizeable proportion of these listings. A good example is Ockham Residential’s latest development, Manaaki in Onehunga.

The development, which is 8km from the city centre, has a

swimming pool, gardens, a residents’ lounge, work-fromhome offices and an in-house cafe. It has three-bedroom offerings available from $845,000, but it is not scheduled for completion until 2023.

More traditional options are on the market too, particularly in West and South Auckland. They include a two-storey, threebedroom terraced house in

Ra¯ nui in West Auckland which is listed at $799,000. It has a garage and an outdoor area, and is close to the train station, supermarkets and Waitakere Hospital.

Another example is a twostorey, four-bedroom attached house in O¯ tara in South Auckland. It has two bathrooms, a garage, a closed patio, a fenced garden and is close to a park, shops, and bus routes. It is on the market for $840,000.

Wellington

In the Wellington region, which had a median price of $875,000 last month, apartments and new builds dominate the listings with a price tag at the national median. But there are standalone houses available for the price.

One is a three-bedroom brick house with a recently upgraded interior in Naenae in Lower Hutt. It has a standalone garage, a fenced garden, and is close to the train station and the local shops. It is listed as open to inquiries from $829,000.

Christchurch

With a median price of $650,000 last month, Christchurch remains the most affordable of the main centres. But it also has the most diverse range of properties available for the national median price.

An example is a four-bedroom house on a 716 square metre section in Northwood which is listed as open to inquiries from $849,000. It has a swimming pool, spa, paved barbecue area, raised vegetable gardens, garden sheds and a double garage with a laundry area.

A more unusual listing is a former vicarage, dating from the 19th century, in Burwood. The five-bedroom, three-living room property was extensively renovated after the earthquakes and used as a preschool facility.

It is on a fully fenced 1467sqm section with off-street parking and views and, while it is selling in ‘‘as is, where is’’ condition, has the potential to be developed into a character home or an accommodation business. It’s on the market for inquiries over $750,000.

Looking around the rest of the country, the properties available for the national median vary widely, from new-build townhouses to standalone villas and huge lifestyle blocks.

Central Hamilton has a threebedroom brick and timber house listed for $850,000. It is close to Melville Park, Waikato Hospital, the Hamilton Lake area and the city, and has easy access to SH1. It also has a fenced section and scope to add value.

Central Dunedin, has a healthy homes certified, fivebedroom house on the market for inquiries over $849,000.

It has balconies at the front and back and a private courtyard. The character property is in an area popular with students.

In more regional areas, the sections get bigger and the features more expansive for the price. A property in Kaita¯ ia in the Far North has two homes on the 2871sqm section. It is on the market for offers from $850,000.

The main residence is elevated with views over Kaita¯ ia. It has three bedrooms, two lounges, a large deck, a double garage and a workspace. The second home is a selfcontained, two-bedroom unit with a separate garage and access.