Auckland bucked the national trend for residential values in 2011 and 2012 with strong growth particularly in central Auckland.
Suburbs such as Ponsonby, Freemans Bay, Grey Lynn and Sandringham have seen the strongest house price inflation which is now spilling over to other suburbs.
Telfer Young notes prices are back to peak 2007 levels (on an inflation adjusted basis).
“That is good news for home owners who bought at or near the peak of the market in 2006 – 2007, although this increase has yet to spread across all suburbs at this stage,” according to Telfer Young.
“As an example of movement in the past year, we are aware of a standard 1920’s bungalow in Sandringham which was purchased in May 2011 for $679,000 recently selling for $825,000 at auction with no upgrading having been undertaken – an increase of 21.5%.
Avondale and Blockhouse Bay prices have also moved markedly throughout 2012.
“An example of this is a relocated 1950’s house on Rosebank Peninsula selling in September 2012 for 23% above its purchase in May 2010, again without any upgrading in the interim.
“On the North Shore, the hot news is that the North Shore Eastern suburbs residential market is now described by agents as ‘on fire’ in the $1 million to $1.6 million range, whereas last year most sales were in the $500,000 to $1 million range.
“There have also been a number of high price property sales. We are aware of three very recent transactions we can mention. One is in Manurere Avenue which sold at $3.575 million, another at Clifton Road, Takapuna, above the beach, at $4.6 million and a third on the cliff at Clifton Road which sold at $5.45 million.”
Telfer Young expects the trend to continue due to lack of recent building activity, low cost of financing, and influx of Asian buyers.