As we wrap up 2024, I want to provide an honest overview of Auckland’s real estate market and extend my heartfelt thanks for your trust and support throughout the year.
Auckland Real Estate Market 2024
Sales Perspective:
This year, Auckland’s housing market faced challenges, with property prices experiencing a decline. CoreLogic NZ’s latest report highlighted the interplay between reduced mortgage rates and persistent market hurdles such as affordability issues and a fluctuating labour market.
Since February, national house prices have fallen by 5%, with Auckland among the most affected regions. The median sale price in Auckland is now $1,038,000, reflecting a 2.99% decrease over the past 12 months. Despite these declines, there has been a recent uptick in sales volumes, indicating confidence is returning.
Property Management Perspective:
From a property management perspective, Kelvin Davidson, chief property economist at CoreLogic NZ confirms the rental sector has experienced a slowdown, with annual growth settling at 1%, well below the long-term average. Rents in Auckland have remained static, while Davidson noted a softening rental demand.
“Rents are already high in relation to household incomes, so a slowdown was always likely at some stage,” he said. “But subdued rental demand owing to a slowdown in net migration and more available listings on the market are also adding to the slowdown too.”
That-said, demand for quality rentals has remained steady, especially in sought after areas. Our team has continued to enhance our marketing presence and work closely with landlord-clients to ensure their advertised properties make top-of-the-list for prospect tenants. A proactive approach to repairs, maintenance and renovation and accurate pricing has been essential to minimise vacancy.
Legislative changes around healthy homes and tenancy law have also kept compliance a key focus for landlords in 2024. All private rentals must comply with the healthy homes standards no later than 1 July 2025.
Keeping an eye on legislation, the New Zealand Government passed the Residential Tenancies Amendment Bill on the 17th of December 2024 introducing significant changes aimed at balancing the interests of landlords and tenant.
The link below outlines key details:
Changes to encourage more rental homes passed into law | Beehive.govt.nz
Looking ahead, 2025 is anticipated to bring a more balanced market, with potential for modest growth in both sales and rentals as economic conditions stabilise. We are under no illusion however, that it’s going to be ‘smooth sailing’. Economists all expecting a bit of a bumpy road, and any serious green shoots were recently quoted, as, “likely off the cards until 2026”.
Christmas Message
As we now countdown to the Christmas season, I also want to reflect on the true meaning of this special time—a celebration of love, joy, and family. May the true spirit of Christmas fill your hearts and homes this season.
Wishing you a blessed Christmas and a peaceful, prosperous New Year. I look forward to continuing our journey together in 2025.
In addition I sincerely thank our staff at Goodwins and all those clients and community members that made donation to our Christmas Gift Collection, or donated directly to the Kindness Collective’s Christmas Joy Store: To read more and share your blessings, please visit: https://www.kindness.org.nz/joystore
