How Is The Auckland Property Market Going ... Right Now?

Last updated 27th January 2022

1601614029185

Ed McKnight

Economist, property investor and host of the Property Academy Podcast
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 2.97%, the median Auckland property achieves a gross yield of just 2.40% (November, 2021).

But, gross yields vary widely depending on which suburb you choose to investigate.

Auckland property market NZ

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 4.73% - 9.82% Based on Suburb. But Which Were the Fastest?

The median house price in Auckland grew at 8.15% between Jan 2000 and Dec 2021 ($230,000 to $1,290,000).

However, house price growth varied widely in different suburbs.

Within that period, the median property in Point Chevalier grew at 9.82% – the fastest in the Auckland region.

These houses grew in value from $275,900 to $2,168,500 – meaning that Point Chevalier homeowners earned $1,892,600 within the period. That is almost $86,027 a year, which is higher than the median personal income.

The slowest growing suburb was Auckland Central, which grew at 4.73%, from $222,400 to $614,700. That's a total of $392,300- just over $17,831 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 10.20% 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 $1,290,000 (December 2021), $290,000 more than the next most expensive region - Wellington.

Auckland homeowners have done well over time. Between December 2011 and December 2021, the median Auckland house price grew by $801,800 (from $488,200 to $1,290,000). That's a 10.20% compound growth.

That's not too far ahead of the five year period (December 2016 - December 2021), where the median Auckland house price increased from $855,000 to $1,259,000. This is an 8.05% growth rate.

Over the last 10 years, the national median house price increased by 9.81% (December 2011 - December 2021).

Short Term House Prices

Auckland's Median House Price is 0.23% below its long term average

On average, over the last 29 years, Auckland's median house price has been 140.26% of New Zealand’s median house price.

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.

Auckland house prices 2022

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 December 2021, Auckland's median house price over the last 12 months was 140.03% of New Zealand’s median house price. That is 0.23% 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, December 2021).

The darker the district, the more expensive the average house price for that area...

The Orakei Local Board area is by far the most expensive district within the Auckland region, with properties reaching an average price of $2,100,000 (December 2021).

By comparison, the Manurewa-Papakura local board has the most affordable house prices, with an average house price of just $1,016,000. That's an enormous $1,084,000 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 timeframe.

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

Auckland City is made up of 55 suburbs. The most expensive suburb is Herne Bay, which has a median house price of $3,542,550. The most affordable suburb is Auckland Central, which has a median house price of $614,700.

Over the last 22 years of all Auckland City suburbs (Jan 2000 – Dec 2021), Point Chevalier had the fastest-growing house, at 9.82% per year. That is 24.18% 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 4.73% per year. That’s 40.22% slower than the median Auckland house price.

North Shore Suburb House Values

North Shore Suburb House Values

North Shore is made up of 40 suburbs. The most expensive suburb is Stanley Point, which has a median house price of $2,626,800. While the most affordable suburb is Birkdale, which has a median house price of $1,081,300.

Over the last 22 years of all North Shore suburbs (Jan 2000 – Dec 2021), Sunnynook had the fastest-growing house, at 8.55% per year. That is 8.11% faster than the median Auckland house price.

The suburb that grew the slowest over that period was Albany, which grew at a rate of 6.68% per year. That’s 15.51% slower than the median Auckland house price.

Manukau Suburb House Values

Manukau Suburb House Values

Manukau is made up of 44 suburbs. The most expensive suburb is Shamrock Park, which has a median house price of $2,262,700. While the most affordable suburb is Manukau, which has a median house price of $614,350.

Over the last 22 years of all Manukau suburbs (Jan 2000 – Dec 2021), Otara had the fastest-growing house, at 9.04% per year. That is 14.22% faster than the median Auckland house price.

The suburb that grew the slowest over that period was Goodwood Heights, which grew at a rate of 6.70% per year. That’s 15.32% slower than the median Auckland house price.

Waitakere Suburb House Values

Waitakere Suburb House Values

Waitakere is made up of 27 suburbs. The most expensive suburb is Muriwai, which has a median house price of $1,442,050. While the most affordable suburb is Ranui, which has a median house price of $989,100.

Over the last 22 years of all Waitakere suburbs (Jan 2000 – Dec 2021), Te Atatu Peninsula had the fastest-growing house, at 8.84% per year. That is 11.73% faster than the median Auckland house price.

The suburb that grew the slowest over that period was Hobsonville, which grew at a rate of 6.79% per year. That’s 14.14% slower than the median Auckland house price.

Papakura-Franklin Suburb House Values

Papakura-Franklin Suburb House Values

Papakura-Franklin is made up of 18 suburbs. The most expensive suburb is Karaka, which has a median house price of $1,561,900. While the most affordable suburb is Glenbrook, which has a median house price of $872,900.

Over the last 22 years of all Papakura-Franklin suburbs (Jan 2000 – Dec 2021), Wesley had the fastest-growing houses, at 8.57% per year. That is 8.32% slower than the median Auckland house price.

The suburb that grew the slowest over that period was Conifer Grove, which grew at a rate of 6.87% per year. That’s 13.11% slower than the median Auckland house price.

Rodney Suburb House Values

Rodney Suburb House Values

Rodney is made up of 29 suburbs. The most expensive suburb is Long Bay, which has a median house price of $1,713,800. While the most affordable suburb is Helensville, which has a median house price of $945,600.

Over the last 22 years of all Rodney suburbs (Jan 2000 – Dec 2021), Helensville had the fastest-growing house, at 7.85% per year. That is 0.77% slower than the median Auckland house price.

The suburb that grew the slowest over that period was Manly, which grew at a rate of 7.07% per year. That’s 10.64% slower 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?

Who are Opes Partners and can they help me?

What is the 3-Step Opes Coaching Programme?

1. Plan out your property investment portfolio

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I want learn more about how Opes can help me

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1601614029185

Ed McKnight

Ed McKnight is the host of the Property Academy Podcast – NZ's #1 business podcast. He is an economist, having studied at the University of Auckland and the University of Waikato. He's a frequent writer for Informed Investor Magazine and has contributed to NewsHub, Stuff, OneRoof and Property Investor Magazine.