Property values in Auckland

Sometimes I have to shake my head at the kind of stuff that is reported in New Zealand, the following article accurately provides the selling price for a home in Auckland but then immediately leaps to some fairly interesting conclusions.

For example the supposed buyer is an Asian investor…now I don’t know if this is true or another one of those “let’s point the finger at Asian investors” ploys designed to cause some controversy and get people talking about how bad those Asian investors are.

We then talk about the big discrepancy between Auckland and other cities but how is that news, we already know that Auckland is 6 times bigger than Hamilton and probably 10 times bigger than Gisborne with prospects for employment in probably the same ratios so of course there will be more demand for houses and if there is not a supply then prices will go up…it’s simple really.

The article is a nice snap shot of Auckland and one of the major issues that we face as a country though.

here’s a snippet of the article

These modest homes show just how far Auckland house prices have skyrocketed beyond the rest of the country.

The value of an average home in Auckland has hit $705,867, according to QV’s residential price index.

This week the Herald on Sunday looked at an Auckland house which sold for $712,000, then located similar houses — with similar-sized properties — around New Zealand and found prices ranged from $139,000 in Gisborne to $210,000 in Whanganui and $325,000 in Whangarei.

In the East Auckland suburb of St Johns, 45 Felton Matthew Ave sold at auction for $712,000. The vendors moved to San Francisco and it was bought by an Asian investor.

The single-level, three-bedroom house sold by Bayleys’ agent Larry Sewell is on a 607sqm flat site. Sewell described the house as a perfect first home or investment property with great flow, raised vegetable gardens and mature trees.

via NZ Herald News.