Auckland Housing Market Likely to Remain Soft Despite Surge in Migration, Predicts ANZ Report

Date Published: 30 April 2024

Key Facts

• ANZ Property Focus report suggests that the Auckland housing market may remain weak over winter.
• Auction clearance rates and sales-to-listings ratios suggest that Auckland house prices may soften further in the short term.
• Despite receiving the majority of net migrants, rental yields in Auckland have remained largely unchanged within the last year.
• This suggests a good balance of rental supply alongside demand, indicating a lack of surge in investor demand for houses.
• Auckland accounts for over 40% of new dwelling consents, primarily multi-unit housing suitable for rental homes.
• Key indicators signal that market tightness in Auckland is on the lower end, and the property market remains soft, with prices possibly experiencing minor contraction in the coming months.
• The observations about the Auckland housing market are applicable to the broader NZ property market as well.
• ANZ is the largest housing lender in New Zealand, with a total loan value of about $107 billion.

Article Summary

ANZ’s latest Property Focus report predicts that the Auckland housing market is expected to stay stagnant over the winter. Property markets in other parts of the country often follow trends set by Auckland, making these findings significant. First quarter sales data for the year suggests that auction clearance rates and sales-to-listings ratios in the region could lead to a slight further softening of prices in the short term.

Despite Auckland receiving most of New Zealand’s net migrants, rental yields have stayed mostly unchanged over the past year. This suggests a parity between rental supply and demand, indicating no surge in investing demand for houses. Additionally, Auckland has seen a strong supply of new housing, accounting for over 40% of the new dwelling consents, mostly comprising of multi-unit properties suitable for rental housing.

The report states that the short term outlook for the Auckland housing market remains soft, with potential for minor price contraction over coming months. It also suggests that these observations about the Auckland property market can be applied to the broader New Zealand housing market.

As the largest housing lender in New Zealand, ANZ’s insights can greatly influence property investments. Its total loans stand at about $107 billion.

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