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Auckland's hot property market drives up prices nationwide

Author
Georgia Nelson,
Publish Date
Tue, 4 Aug 2015, 6:30PM
(Edward Swift)
(Edward Swift)

Auckland's hot property market drives up prices nationwide

Author
Georgia Nelson,
Publish Date
Tue, 4 Aug 2015, 6:30PM

Auckland's red hot property market and increased demand in the upper North Island is driving up prices nationwide as house prices in areas within driving distance from Auckland continue to skyrocket.

The average price of a house in Auckland at over $855,000 - up by almost a third from what it was eight years ago.

The latest monthly QV House Prince Index shows Tauranga values have increased by 7.7 percent in the year to July and Hamilton is not far behind on 7.4 percent.

Nationwide values have increased 10.1 percent in the year to July.

QV national spokeswoman Andrea Rush reports it's the fastest annual growth rate since 2007. They are calling it the Auckland impact.

"A lot of that is being driven by Auckland but we're also starting to see a definite upwards swing in market activity in the upper North Island as well," Ms Rush said.

"As people start to look outside of Auckland for more affordable homes and also investors look outside of Auckland to get higher yields because properties are cheaper."

Building and Housing Minister Nick Smith admits there's no major surprise in the figures but he believes the rate of increase is unsustainable.

He reports the Government has taken steps to address the issue but inevitably it takes time for them to flow through.

"What we need to do is to pull out all stops to build more houses. I am confident that increasing supply will work in time work to curtail Auckland house price inflation."

But Labour MP Phil Twyford is predicting on the current rate of increase the average house price in the city will hit $1 million in 329 days.

"There's no question that the Auckland housing market is blisteringly hot at the moment and it seems to be getting hotter and hotter."

 

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