Which Suburbs in the Auckland Property Market Grow the Fastest?

Here's an analysis of the suburbs that have historically grown in value the fastest in Auckland? Plus other crucial insights about the Auckland Property Market

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 dot represents a different suburb, and the colour of the dot represents how quickly house prices have increased over the past 20+ years.

The redder the dot ... 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. While the country's median gross yield is 3.9%, the median three-bedroom home in Auckland achieves a gross yield of just 3.3%.

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

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 4.87% - 9.45% Based on Suburb. But Which Were the Fastest?

The median house price in Auckland grew at 7.25% between Jan 2000 and Aug 2018 ($230,000 to $850,000).

However, house price growth varied widely in different suburbs.

Within that period, the median property in Point Chevalier grew at 9.45% – the fastest in the Auckland region.

These houses grew in value from $275,900 to $1,488,600 – meaning that Point Chevalier homeowners earned $1,212,700 within the period. That is almost $65,000 a year, which is higher than the median income.

The slowest growing suburb was Auckland Central, which grew at 4.87%, from $222,400 to $540,500. That's a total of $318,100 just over $17,000 a year.

The other suburbs that grew the fastest were:

Fastest Growing Suburbs squashed

The suburbs that grew the slowest were:

Slowest Growing Suburbs squashed
Long Term House Prices

Auckland House Prices Have Increased By 6.3% Annually 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 $848,000 (Sept 2019), $208,000 (32.5%) more than the next most expensive region, Wellington.

It's clear in the following graph that both Auckland and the West Coast are outliers. One is significantly more expensive than the next most expensive suburb – the other is significantly cheaper than the next cheapest suburb.

This is primarily for the same reason – population growth.

Auckland's population is expected to grow by over 30% in the next 20 years, whereas the West Coast is the only region where the population is expected to shrink.

On top of this, Auckland's residents are set to make up 40% of the country's population; it is the economic powerhouse of the country, and its economy is diversified.

These are all factors that we associate with a property market that is geared for higher house prices. That's why Auckland ranked so highly in our analysis of NZ property markets.

Auckland homeowners have done very well over time. Between Sept 2014 and Sept 2019, the median Auckland house price grew by $228,000 (from $620,000 to $848,000). This is a 6.46% average annual increase.

This is similar to the 10 year period (Sept 2009 - Sept 2019), where the median Auckland house price increased from $460,000. This is a 6.3% average annual growth rate.

Over the last 10 years, the national median house price increased by 5.52% annually.

Key takeaway: Over the long term Auckland tends to grow at a faster rate than the national median.

Short Term House Prices

But, Auckland House Prices Are Currently Flat, Though Are Increasing Elsewhere

Auckland's median house price has declined by $52,000 since its March 2017 peak (up until September 2019), when the median house price was $900,000.

While over the long term, Auckland house prices have outpaced those of other regions, recently Auckland's house price growth has slowed. Some of New Zealand's other regions, meanwhile, have experienced astronomical growth.

Over the last 5 years, the national median house price has grown at 7.3% annually, while Auckland's has been up 6.3%.

And over the last 12 months (September 2018 - September 2019), Auckland house prices have decreased by 0.4% ($4,000), and the national median (excluding Auckland) is up by 6.8%.

The reason for this is likely the difference in how property cycles move around the country.

Key takeaway: Right now, the Auckland property market is flat, while other regions are increasing.

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:

Projected-Population-Increases-V2
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 $1,604,250. While the most affordable suburb is Auckland Central, which has a median house price of $544,700.

Over the last 20 years of all Auckland City suburbs (Jan 2000 – Mar 2020), Westmere had the fastest-growing house, at 8.84% per year. That is 27.92% 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 4.52% per year. That’s 34.55% 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 $1,965,850. While the most affordable suburb is Birkdale, which has a median house price of $819,750.

Over the last 20 years of all North Shore suburbs (Jan 2000 – Mar 2020), Birkdale had the fastest-growing house, at 7.63% per year. That is 10.39% faster than the median Auckland house price.

The suburb that grew the slowest over that period was Waiake, which grew at a rate of 6.05% per year. That’s 12.48% 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 $1,668,150. While the most affordable suburb is Manukau, which has a median house price of $571,900.

Over the last 20 years of all Manukau suburbs (Jan 2000 – Mar 2020), Otara had the fastest-growing house, at 7.83% per year. That is 13.31% 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 5.58% per year. That’s 19.29% 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 Herald Island, which has a median house price of $1,221,050. While the most affordable suburb is Kelston, which has a median house price of $723,350.

Over the last 20 years of all Waitakere suburbs (Jan 2000 – Mar 2020), Te Atatu Peninsula had the fastest-growing house, at 8.04% per year. That is 16.28% faster than the median Auckland house price.

The suburb that grew the slowest over that period was Hobsonville, which grew at a rate of 6.05% per year. That’s 12.41% 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 $1,150,200. While the most affordable suburb is Orere Point, which has a median house price of $530,800.

Over the last 20 years of all Papakura-Franklin suburbs (Jan 2000 – Mar 2020), Papakura had the fastest-growing house, at 6.39% per year. That is 7.53% 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 5.59% per year. That’s 19.14% 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 Omaha, which has a median house price of $1,827,600. While the most affordable suburb is Wellsford, which has a median house price of $549,700.

Over the last 20 years of all Rodney suburbs (Jan 2000 – Mar 2020), Helensville had the fastest-growing house, at 7.10% per year. That is 26.84% faster than the median Auckland house price.

The suburb that grew the slowest over that period was Warkworth, which grew at a rate of 6.02% per year. That’s 12.85% 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.