PHOTO: Auckland

Taken as a whole, Auckland’s property market is soft and it’s easy to see this continuing in 2019. There are exceptions to this outlook, but to find them you need to be looking in the generally cheaper parts of the city/region (e.g. Otara), where values are still increasing. By contrast, declining values in areas such as Murrays Bay illustrate the ongoing affordability problems.

CoreLogic property economist Kelvin Davidson writes:

Yesterday’s CoreLogic QV House Price Index showed that the property market warmed up a bit in February, although Auckland remained soft, with flat average values for the month, leaving the level down by a relatively minor 0.9% from a year earlier (see the first chart). The reasons are pretty obvious, including high prices and low affordability, the hit to demand from the foreign buyer ban, and the high level of listings (see the second chart) which is providing buyers with options  and probably leading some vendors to adjust pricing to get their sale across the line.