years shows that while there has been strong capital growth, price gains have not been spectacular, particularly in the past five years.
The areas where the average price had increased the most in the past decade were Central and West Auckland. In the Central area the price of a three bedroom home has increased by 102% to $653,000, while West Auckland three bedroom homes have doubled in price to $449,000.
‘The attraction of the Central area is its well established infrastructure and its closeness to the central business area. In West Auckland buyers have recognised property in the area represented value for money, offered lifestyle choices and saw there would be improved access to the central city through the development of rail infrastructure,’ said director Peter Thompson.
At the other end of the spectrum, the average price for a three bedroom home in Franklin and rural Manukau increased by 58% in the past 10 years, and now stands at $449,000.
‘This area retains its rural heritage and represents lifestyle options that have disappeared from many other Auckland locations as the city has grown As transport infrastructure improves between the city and the south, greater buyer attention is likely to be refocused south,’ explained Thompson.
The area which has the highest average price for three bedroom homes is the Eastern Suburbs, where the price growth in the past decade has been 70 % and the average price now stands at $826,000.
‘While individuals will have bought and sold properties at values with far greater variations than our sales figures show, our statistics are drawn from the sale of more than 13,000 three bedroom homes and provide an accurate overview of price movements in Auckland over the past 10 years,’ Thompson said.
‘The long term trend shows that across the city as a whole, the average price for a three bedroom home has risen by 78% in the past decade. While this represents a solid return for those who have committed to home ownership over that period the level of increase is in line with the returns achieved from other forms of investment during a similar period,’ he explained.
‘What the analysis points out is the significant variation in price increases that have occurred across different areas of the city, and that the price rise over the past five years is only a third of the price growth experienced between 2003 and 2008, some 17% compared to 51%,’ he added.
