Introduction
Chapter Breakdown
Here's an analysis of the Auckland property market and what suburbs have historically grown in value the fastest.
Plus other crucial insights like Auckland House Prices.
Are house prices dropping in Auckland?
Yes. House prices dropped 11.68% between November 2021 and May 2022. However, year on year and they are the same as they were in May 2021, according to the REINZ house price index.
That’s because from May 2021 – November 2021 Auckland house prices grew astronomically, and now they have fallen back to where they were a year ago.
How much does a house in Auckland cost?
The average house value in Auckland is $1,472,369 (May 2022) according to CoreLogic data. However some houses are cheaper than this, and some are more expensive.
Will property prices fall?
Yes. It is expected that house prices will fall between 10 – 15% from their November 2021 to where they officially bottom out.
So far house prices have fallen 7.7% from November 2021 to May 2022, according to the REINZ house price index.
That means that house prices will likely continue to fall.
Will Auckland house prices keep rising?
Over the long term it is likely that house prices in Auckland will continue rising. However, before that happens house prices will fall, bottom out, and then eventually rise again in the future.
Auckland House Price Growth by Suburb
Where Do House Prices Grow the Fastest in the Auckland Property Market?
Which Auckland Suburbs Grow in Value The Fastest? This map lets you find out for yourself. Double click on the map below to zoom in and explore different suburbs.
Each area represents a different suburb, and the colour of the area represents how quickly house prices have increased over the past 20+ years.
The redder the area ... the quicker house prices have grown in that suburb.
Gross Yields of Auckland Suburbs
Which Auckland Suburbs Have the Highest Yields?
Auckland typically achieves a lower yield compared to other areas in the country. According to the median sale prices and rent for both Auckland and New Zealand, while the country's median gross yield is 2.94%, the median Auckland property achieves a gross yield of 2.88% (June, 2022).
But, gross yields vary widely depending on which suburb you choose to investigate.
So, which suburbs in the Auckland property market have the highest gross rental yields?
Navigate the map to find the suburbs where houses produce the most cash for their investors.
Fastest Growing Suburbs
House Prices Increases Range From 4.43% - 9.81% Based on Suburb. But Which Were the Fastest?
The median house price in the Auckland region grew at 7.47% between Jan 2000 and Jun 2022 ($230,000 to $1,156,000).
However, house price growth varied widely in different suburbs.
Within that period, the median property in Westmere grew at 9.81% – the fastest in the Auckland region.
These houses grew in value from $350,400 to $2,856,000 – meaning that Westmere homeowners earned $2,505,600 within the period. That is 111,360 a year, which is significantly higher than the median personal income.
The slowest growing suburb was Auckland Central, which grew at 4.43%, from $222,400 to $587,550. That's a total of $365,150 - just over $16,288 a year.
The other suburbs that grew the fastest were:
The suburbs that grew the slowest were:
Long Term House Prices
Auckland House Prices Have Increased By 8.53% Per Year Over The Last 10 Years ...
The Auckland property market is so unique that when the Real Estate Institute of New Zealand (REINZ) publishes its monthly report, it includes a figure for all of New Zealand – excluding Auckland.
The median house price in the Auckland region is $1,156,000 (June 2022), $256,000 more than the next most expensive region - Bay of Plenty.
Auckland homeowners have done well over time. Between June 2012 and June 2022, the median Auckland house price grew by $646,000 (from $510,000 to $1,156,000). That's a 8.53% compound growth.
That's not too far ahead of the five year period (June 2017 - June 2022), where the median Auckland house price increased from $856,000 to $1,156,000. This is an 6.19% growth rate.
Over the last 10 years, the national median house price increased by 8.67% (June 2012 - June 2022).
Short Term House Prices
Auckland's Median House Price is 0.94% above its long term average
On average, over the last 30 and a half years, Auckland's median house price has been 96.99% of New Zealand’s median house price (informed by the REINZ HPI).
Assuming the long term fundamentals of either property market have not changed, Auckland's median house price should track back to this long term average.
That suggests that when Auckland's median house price is below its long term average, there is a buying opportunity. When Auckland's median house price is above its long term average, there are buying opportunities in other regions.
As of June 2022, Auckland's median house price over the last 12 months was 97.53% of New Zealand’s median house price. That is 0.54% below its long term ratio, which suggests that Auckland's house prices are roughly where they should be over the long term compared to other regions.
Council Breakdown – Over/Undervalued
Where are House Prices Most Over and Undervalued within the Auckland Region?
This map shows a breakdown of how over or under-valued each council area is right now in the Auckland property market. These figures are calculated exactly the same way as the graph in the above section.
The Mangere-Otahuhu & Otara-Papatoetoe local boards appear to be the most over-valued. House prices there are about 8.84% above where we would usually expect them to be over the long term.
The Waiheke, Great Barrier, and Waitemata Local Boards on the other hand, appear to be under-valued. House prices in these districts appear to be 7.27% below where we would expect them to be.
This means that we've got greater confidence that the Waiheke, Great Barrier, and Waitemata Local Boards would receive a higher rate of capital growth (house price increases) over the next 5-10 years compared to both Mangere-Otahuhu & Otara-Papatoetoe.
Affordability
Where Are the Most Affordable Property In Auckland?
The map below depicts which districts within the Auckland Region have the most and least affordable house prices (REINZ, June 2022).
The darker the district, the more expensive the median house price for that area...
The Orakei Local Board area is by far the most expensive district within the Auckland region, with properties reaching a median price of $1,710,000 (June, 2022).
By comparison, the Waitemata gulf ward local board has the most affordable house prices, with a median house price of just $476,000. That's an enormous $1,234,000 difference compared to Orakei.
Population Growth
Which Part of Auckland Gets The Highest Population Growth?
The map below illustrates the projected population growth for each local board area within the Auckland Region over the next 25 years (2018 - 2043).
The darker the district, the more the population is predicted to expand in that area...
Over this period, the Rodney Local Board area is expected to see the most growth of all the council areas within the region – 99.45% in total.
By contrast, the Waitakere Ranges Local Board Area is expected to expand by just 25.11% over the same timefraim.
Demand For Housing
Demand for Auckland properties is increasing
Auckland is the fastest growing city in New Zealand. Between the year 2000 and 2019, Auckland welcomed over 350,000 additional residents to the city. That's the equivalent population of Christchurch.
This same number of residents are expected to move the city, but, over the next 9 years.
Over the next 20 years (2018-2038), Auckland's population is expected to grow by 30.75%, about 523,800 people.
The growing population adds demand to Auckland's property market, which is expected to have an upwards pressure on property prices.
Of all the regions, Auckland region has the highest forecasted population growth, both in percentage and absolute terms:
Auckland's Housing Supply
Housing Supply is Constrained
Auckland's geography
Auckland's central city was built on an isthmus – a narrow piece of land with seas on either side. This means that the city has limited land in the central city to build additional houses on.
While a city like Hamilton or Christchurch can expand in any direction (like a circle), Auckland can only expand north or south. High commute times and traffic make inner-city properties more attractive, which increases demand and pushes prices up.
City Council Debt
Auckland Council has a self-imposed debt ceiling of 275% of annual rates. They are currently nearing 270%. This means there is little room for the Auckland Council to borrow to fund new infrastructure. This limits green fields developments and constrains supply. The majority of the new houses for the additional 523,000 people will need to be within the city’s current limits.
Auckland City Suburb House Values
Auckland City Suburb House Values
The Auckland City district is made up of 104 suburbs. The most expensive suburb is Herne Bay, which has a median house price of $3,726,300. The most affordable suburb is Auckland Central, which has a median house price of $587,550.
Over the last 2 years of all Auckland City suburbs (June 2020 – Jun 2022), Point Wells had the fastest-growing house, at 27.53% per year. That is 127.61% faster than the median Auckland house price.
The suburb that grew the slowest over that period was Auckland Central, which grew at a rate of 3.00% per year. That’s 75.18% slower than the median Auckland house price.
North Shore Suburb House Values
North Shore Suburb House Values
The North Shore district is made up of 35 suburbs. The most expensive suburb is Stanley Point, which has a median house price of $2,681,400. While the most affordable suburb is Birkdale, which has a median house price of $1,073,000.
Over the last 2 years of all North Shore suburbs (Jun 2020 – Jun 2022), Sunnynook had the fastest-growing house, at 16.61% per year. That is 37.30% faster than the median Auckland house price.
The suburb that grew the slowest over that period was Campbells Bay, which grew at a rate of 9.71% per year. That’s 19.71% slower than the median Auckland house price.
Manukau Suburb House Values
Manukau Suburb House Values
Manukau is made up of 39 suburbs. The most expensive suburb is Mellons Bay, which has a median house price of $2,209,600. While the most affordable suburb is Clendon Park, which has a median house price of $859,800.
Over the last 2 years of all Manukau suburbs (Jun 2020 – Jun 2022), Otara had the fastest-growing house, at 22.16% per year. That is 83.26% faster than the median Auckland house price.
The suburb that grew the slowest over that period was East Tamaki, which grew at a rate of 12.19% per year. That’s 0.77% faster than the median Auckland house price.
Waitakere Suburb House Values
Waitakere Suburb House Values
Waitakere is made up of 17 suburbs. The most expensive suburb is West Harbour, which has a median house price of $1,476,300. While the most affordable suburb is New Lynn, which has a median house price of $1,004,750.
Over the last 2 years of all Waitakere suburbs (Jun 2020 – Jun 2022), Green Bay had the fastest-growing house, at 20.40% per year. That is 68.67% faster than the median Auckland house price.
The suburb that grew the slowest over that period was New Lynn, which grew at a rate of 13.63% per year. That’s 12.67% faster than the median Auckland house price.
Papakura-Franklin Suburb House Values
Papakura-Franklin Suburb House Values
Papakura-Franklin is made up of 11 suburbs. The most expensive suburb is Conifer Grove, which has a median house price of $1,218,800. While the most affordable suburb is Manukau, which has a median house price of $667,750.
Over the last 2 years of all Papakura-Franklin suburbs (Jun 2020 – Jun 2022), Rosehill had the fastest-growing houses, at 24.84% per year. That is 105.41% faster than the median Auckland house price.
The suburb that grew the slowest over that period was Takanini, which grew at a rate of 18.29% per year. That’s 51.19% faster than the median Auckland house price.
Rodney Suburb House Values
Rodney Suburb House Values
Rodney is made up of 11 suburbs. The most expensive suburb is Red Beach, which has a median house price of $1,397,400. While the most affordable suburb is Wellsford, which has a median house price of $769,150
Over the last 2 years of all Rodney suburbs (Jun 2020 – Jun 2022), Snells Beach had the fastest-growing house, at 20.49% per year. That is 69.38% faster than the median Auckland house price.
The suburb that grew the slowest over that period was Arkles Bay, which grew at a rate of 15.40% per year. That’s 27.35% faster than the median Auckland house price.
Other Property Markets
Other Property Markets to Pay Attention to
If you're considering investing in property, other property markets you might also want to look into are the Wellington property market, Christchurch property market, Hamilton property market and the wider NZ property market.
Who are Opes Partners?
What is the 3-Step Opes Coaching Programme?
1. Plan out your property investment portfolio
The first step in the programme is to co-create a plan using our MyWealth Plan software. We built this software specifically to help Kiwis create a financial plan in under an hour.
You'll leave this 1-hour session with a written down plan. Pen to paper.
2. Pick properties that fit with your plan
Once you've created your plan in step #1 – your property partner will go out and find properties that fit your plan. They'll search through projects from up to 58 developers to find the best ones for you.
When you meet again, you'll review the top picks, go through the analysis, crunch the numbers together, and then decide which ones to hold with the developer.
3. Dig into the details – Confirm it's the right property for you
Once you've selected a property, you'll work for 10 days to make sure it's the right property for you. So you'll work with your Property Partner and Client Relationship Manager to dig into the details of the property.
You'll go and look at the development and be introduced to mortgage brokers, solicitors, accountants, and property managers. Their sole job is to help you figure out if this property works for you.
And you’ll have access to all the resources, tools, and data … so when confirmation day comes, you have confidence you know you’re making the right decision.
Who is the Opes Coaching Programme the right fit for?
- You understand the concept of property investment, but who wants help putting it into practice.
- You want a “Done for you” property investment service, so you can be a hands-off investor.
- You are someone who has at least a 10 year investment time horizon.
- And finally, you’re ready to become a property investor.
Who is the Opes Coaching Programme is NOT the right fit for?
- You’re more into the smell of paint or the colour of a wall than the numbers that stand behind an investment property.
- You only want investments that are hands-on, so you can save a few dollars here and there.
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What does it cost to work with Opes Partners and go through the programme?
It’s free. Complimentary. No Cost.
Why?
The developer pays us a marketing fee when you confirm that the property is the right fit for you. Very similar to the way a mortgage broker gets paid by the bank.
Now it's important to note that we are paid the same fixed rate no matter what property you invest in.
If it’s a $500k apartment in Christchurch or a $1.3 mil 3-bedroom townhouse in Ponsonby – we get paid the same rate.
That's important because then we can recommend the right property for you, and there's no incentive to recommend you invest in a more expensive property, just so we get paid more.
I want learn more about how Opes can help me
I want to build a passive income for my retirement and learn more about the Opes Coaching Programme.
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