5 November 2009
A prominent New Zealand real estate firm has reported that Aucklandâ€™s average house prices have surged 5.8 percent in the past month, putting Auckland house prices at a 22-month high.
According to the firmâ€™s figures, the average sales price across the Auckland region in October was $544,745.Â Â Auckland has not seen average prices comparable to this since December 2007 (during the property marketâ€™s peak).
These latest figures are confirmation that the housing market is recovering from its slump last year.Â The house prices achieved in October put average prices 4.8 percent ahead of where they were in the same month last year.
Buyers are being encouraged by low floating mortgage rates, while the big downturn in the construction industry that started in 2007 is leading to a shortage of new homes.Â Strong population gains through migration are also contributing to upward pressure on house values.
The companyâ€™s property management division also reported strong rental activity.Â Average rents achieved lifted 4.9 percent on rental levels only a month earlier.