How much have NZ houses 'earned' in the last 10 years?, All things property, under OneRoof

CoreLogic NZ and OneRoof analysed the median values of 661suburbs across New Zealand from 2008 to 2017, and looked at how many saw annualgains above the median salary.

The suburbs examined were those that had automated valuationmodels going back to 2008, and although the figures don’t cover every suburb,they give a fairly accurate picture of market activity in the country over thepast ten years.

The figures show clearly the extent of the boom in theAuckland property market, the depressing effect of the LVRs introduced by theReserve Bank and the recent lift in regional housing markets.

In 2008 no suburb saw gains above the median salary, then$37,960, but most suffered drops in value, with 609 suburbs recording anaverage loss of $21,077. Just three Auckland suburbs - Wiri, Helensville andOtahuhu - saw values lifts, although by marginal amounts. Saint Marys Bay lostthe most, $133,800, followed by Orakei (-$92,800) and Ponsonby (-$89,700).Winton in Southland saw the biggest increase, at $19,000.

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In 2009, 279 suburbs saw a lift in values (with the averagegain sitting at $11,289). However, 10 suburbs, all in Auckland, saw gains abovethe median salary, then $39,520. They were: Meadowbank ($39,800);

Remuera ($40,300); Dannemora ($40,900); Greenlane ($41,700);Parnell ($45,300); Mount Eden ($47,100); Epsom ($47,500); Westmere ($72,100);Mellons Bay ($75,000); and Glendowie ($77,000). Saint Marys Bay came in at$37,700. The best performing suburb outside of Auckland was North Dunedin, inDunedin, which saw values lift $26,300, while the worst performing suburb wasStanley Point in Auckland, which dropped $60,400 in value.

In 2010, the numberof suburbs that grew in value rose to 440, but just 11 suburbs grew above themedian salary, again all in Auckland. Saint Marys Bay was the best performing,rising $117,700. The best performing suburb outside of Auckland was Kelburn inWellington, which rose $39,300 in value. Three Bay of Plenty suburbs were theworst performers: Tauranga City lost $42,300; Pukehina lost $42,200; and MountMaunganui lost $30,900.

In 2011, Saint Marys Bay fell $16,500 in value as the numberof rising suburbs dropped to 2009 levels. Just three suburbs rose above themedian salary: Orakei (up $43,200); Pt Chev (up $43,500) and Ponsonby (up$53,000). The best performing suburb outside of Auckland was Waihi Beach in theWestern Bay of Plenty, which grew $32,400 in value. The worst-performingsuburbs were: Pukehina (which dropped a further $54,300 on the year before);Whangarei Heads (down $53,200) and Arrowtown in Queenstown-Lakes District (down$48,100).

In 2012, the market was starting lift itself properly out ofthe doldrums of the GFC, with 87 suburbs seeing capital gain above the thenmedian salary of $41,912, and a further 461 seeing rises below that level, withthe average lift coming in at $14,073. Thirteen suburbs, all in Auckland,earned more than double the median salary. Of those, two earned more than fourtimes the median salary: Westmere (up $175,700) and Saint Marys Bay (up $178,350).No Auckland suburb dropped in value, while the best performing suburb outsideof the city was Arrowtown, in Queenstown (up $82,700).

In Christchurch, values post-quake were holding up, withjust two suburbs dropping in value, Fendalton (-$13,950) and Governors Bay(-$12,900).

The worst-performing suburb was Tamaterau in Whangarei,where the median value dropped $46,500.

In 2013, the market was in full flow, with 25 percent ofsuburbs seeing lifts in value above the median salary, then $43,940, all ofwhich were either in Auckland or Christchurch. Sixty-six suburbs earned morethan $100,000, of which only one was outside of Auckland - Clifton, inChristchurch, which rose ($104,000). The best performing suburb was Epsom, inAuckland, which rose $201,000, while the worst-performer was Akaroa, inChristchurch, which dropped $39,850.

The best-performing suburb outside these two cities wasMornington, in Wellington, which rose $37,750. The fact that Auckland andChristchurch saw the biggest dollar rises in New Zealand speaks to the hugespikes in demand that both cities were experiencing, Auckland's fuelled bymigration and low interest rates and Christchurch's driven by the need for safehousing following the quakes.

In 2014, the first iteration of the LVR, introduced by theReserve Bank in 2013 to slow the rapidly growing property market, was having aneffect, with 17 percent of suburbs earning more than the median salary, andjust 24 earning more than $100,000. No suburb broke the $200,000 mark. The bestperforming suburbs outside of Auckland were again in Christchurch, withFendalton rising $114,850 in value and Merivale up $117,800. The best performeroutside of Auckland and Christchurch was Arrowtown, which rose $74,950. Theworst performing suburb was Hilltop, in Taupo, which dropped $26,550. Theaverage gain in Auckland was $61,666, down from $89,694 the previous year. Justone Auckland suburb saw a drop in its median value - Waiatarua, down $250.

By 2015, property had bounced back with the average gain inNew Zealand sitting at $59,606, fuelled by rising demand in Auckland. Sixhundred and thirty suburbs of the 661 tracked rose in value - 202 of which sawincreases above the median salary, then $45,864. Of the 156 Auckland suburbstracked, just nine saw gains below $100,000. Forty-five Auckland suburbs earnedmore than $200,000 and five - Westmere, Epsom,

Castor Bay, Murrays Bay and Saint Marys Bay - earned morethan $300,000, with Saint Marys Bay ranking highest, with a rise of $323,550 -more than seven times the median salary.

The best performing suburb outside of Auckland was MountMaunganui, in Tauranga, up $106,050. The figures show a clear surge inTauranga's property market - the average gain for the year was $56,920 up from$14,329 the year before. Market activity was also slowing in Christchurch, withmedian values up an average $15,929, down from $33,554 the year before.

The worst-performing suburb was Westport, in Buller, whichdropped $23,050. However, the average drop for those that fell behind was just$4000.

2016 was the year the market hit its peak. Fifty-ninepercent of suburbs earned more than the median salary. No suburb broke the$300,000 mark, and for the first time in the period assessed, a suburb outsideof Auckland saw the biggest rise in median value: Arrowtown, in Queenstown,jumped $244,450. The next biggest riser was Saint Marys Bay, which earned$235,300 - down 21 percent on the year before.

Of the 161 suburbs that earned more than $100,000, 57percent were in Auckland. The previous year, Auckland represented 99.3 percentof $100,000-plus earners. The change reflects the catch-up being played in theregions, with the figures showing strong growth in high value areas close toAuckland (the average rise in Tauranga was $121,658 and in Hamilton $83,420)and Queenstown, where the average gain was close to $200,000.

Other strong performers were: Wellington (up an average$122,094); Lower Hutt (up an average $81,302); Upper Hutt (up an average$67,408); Rotorua (up an average $67,800); and Napier (up an average$56,240).

The figures also show the flattening in Christchurch'smarket, with the average gain there just $7039. The worst-performing suburb wasClifton, Christchurch, which dropped $31,350. The average drop of the 15suburbs that registered a loss was $5476.

By 2017, a new iteration of the LVR and a tightening of banklending had started to put the brakes on market, with 30 percent of suburbsearning more than the median salary, a drop of 29 percentage points on theprevious year. Just 17 suburbs earned more than $100,000, with Queenstown, up$217,400, earning the most. Of the 200 suburbs that earned more than $49,868,just 29 were in Auckland, with Oneroa earing the most, at $212,000.

For the first time since 2014, Auckland suburbs startedlosing money. Sixty-six Auckland suburbs dropped in value, ranging fromUnsworth Heights, which fell $800, to Golflands, which dropped $81,700. SaintMary Bay's median value lifted just $20,400 - a drop of 91 percent on the previousyear. The slowdown was also apparent in Tauranga, where the average gaindropped to $28,385, and Hamilton, where the average gain was $19,408. The dropin growth was less profound in Rotorua, where the average gain was $42,906,down from $67,800 the previous year.

The figures show continued strength in Wellington and thesurrounding regions: Wellington was up an average $66,723; Porirua $63,459;Lower Hutt $68,792; Upper Hutt $54,433; and the Kapiti Coast $64,625.

Outside of Wellington, the best-performing metro was Napier,whose suburbs earned an average $61,477, up from $55,150 the previous year.Dunedin also rose in value, with its suburbs earning an average $45,644, upfrom $29,661 the year before. Elsewhere, Whangarei was up an average $46,683, butdown from $77,819 the year before, while Gisborne was starting to surge, withthe average suburb gain at $32,621, up from $21,978 the year before. Theregion's best performing suburb, Whataupoko, earned $55,650.

Salary v suburb: 2008-2018

2008

• Median salary: $37,960

• Percentage of suburbs where gain was above median salary: 0

2009

• Median salary: $39,520

• Percentage of suburbs where gain was above median salary: 2

2010

• Median salary: $40,456

• Percentage of suburbs where gain was above median salary: 2

2011

• Median salary: $41,600