In a city which for years has failed to meet demand for new sections and housing, some Auckland properties in the city's south and north-west are being sold at discounted prices because of the high volumes of new supply, an expert says.
James Steele, Quotable Value registered valuer and senior consultant, said he had seen changes recently at Flat Bush where discounts of around $100,000 were being applied to some houses and sections.
"We have noticed a discount in Flat Bush for some time now. There is a lot of land under development in that part of town and supply appears to have caught up with demand for some developers who are unable to carry the excess stock.
"This has resulted in some land which was previously fetching $700,000-plus in the peak being sold for low-mid $600,000s.
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"With improved property, we are also seeing a significant discount being applied to finished houses which were previously $1.5m and are now $1.4m or lower in some cases," Steele said.
Advertising on Trade Me for Flat Bush homes like a Calcite Ave place promoted the sale as a "massive price reduction".
Another ad for a Topland Dr place in Flat Bush was promoted as "price reduction".
Price changes at Hobsonville Point in the city's north west are less marked, he said, but still apparent.
"Hobsonville is slightly different. We noticed that there were some price reductions earlier this year where there were completed two-bedroom townhouses asking in the high $600,000s where previously these were in the low $700,000s.
"These appear to have been snapped up rather quickly and at this stage look to have reflected the developer discounting stock which had been hanging around for a bit too long," Steele said.
But while there might be some price reductions at Flat Bush and Hobsonville, Bindi Norwell, chief executive at REINZ says median sale prices in the two area were holding up. "The median sales price for Flat Bush for the 3 months ending February 2018 was $1,150,000. The price achieved for sales in the area was 2.2 per cent higher than the median valuation for the area ($1,125,000)," Norwell said. "The median sales price for Hobsonville Point for the 3 months ending February 2018 was $905,000. The price achieved for sales in the area was 4 per cent higher than the median valuation for the area ($870,000). "Data indicates that the median sales prices obtained for the properties in these areas were above the median sales value."Both areas are relatively new developments in Auckland - they have good schools, new amenities and multiple parks, so they are understandably popular areas to live – particularly to families with children. "As there is still a shortage of properties across Auckland it is great to see areas such as Flat Bush and Hobsonville Point whereby extensive efforts are being made to increase levels of supply."
Overall, Auckland house valuation gains have been at a far more modest pace lately.
The new QV House Price Index shows national values rose 7.3 per cent annually but Auckland values up only 1 per cent annually. A year ago, Auckland values were rising at the rate of 12.3 per cent, QV said.
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