Below are extracts from a long article in today’s NZ Herald
In essence it shows that house prices overseas are far dearer than those in New Zealand and in Auckland in particular.
In other words you get far more for your money here than in many other major cities of the world so talk of a “bubble” is nonsense.
And bear in mind that in the overseas examples given, many of the economies are in a deep recession.
Our market is undergoing a correction which, like all corrections it will slowly level out – until the next time that is.
Auckland house prices vs world’s
Monday May 6, 2013
A sprawling five-bedroom, three-bathroom home on Tiverton Rd in New Windsor, a suburb west of Mt Roskill and south of Waterview, was used as the Auckland comparison.
The two-storey house, 9.9km from the city, has a 229sq m floor, sits on a 708sq m section and has double garaging, and room for three more cars in the driveway.
It is advertised for sale for $675,000, but has a capital value of $540,000, set in July 2011.
The street is close to the soon-to-be-built Waterview Connection, which will link State Highways 16 and 20, providing an even more direct route into the city.
It’s walking distance to New Windsor School (primary) and two minutes’ drive to the New World supermarket.
The Barfoot & Thompson real estate agent selling the house, Paresh Patel, said several families had looked through it since it was listed in February.
More residents were looking at New Windsor as they realised their money could go further than in the usually more popular suburbs.
“Mt Eden homes can have very small sections – about 300 square metres – and then the house is even smaller,” Mr Patel said.
“But in New Windsor and Blockhouse Bay, you can get a reasonably sized section.”
Overseas, few standalone homes were available in the price range within a 10km radius from the central city – they were mostly apartments and townhouses.
Australia’s capital, Canberra, was the only city out of the 10 surveyed where the Herald could find a freestanding home – but it was still smaller than the Auckland example.
The three-bedroom brick house in the leafy suburb of Downer, 8.2km from central Canberra, has one bathroom and double garaging and is on the market for A$550,000 ($667,953).
Sydney, Brisbane and Perth offered only apartments or townhouses within the price range.
In New York – a city dominated by apartments – $670,000 could buy a 51sq m space on the second floor with one bedroom and a bathroom, on 15th St in Manhattan.
The building also included a live-in superintendent and a marble lobby.
In Los Angeles, where apartments are known as condominiums, the choice is slightly better – with a two-bedroom, three-bathroom place on a 139sq m floor on offer in central Los Angeles.
The building, on Westminster Ave, includes a pool and two parking spaces.
In Paris, $670,000 does not buy a lot – a studio apartment with a 32.65sq m floor in the 18th arrondissement – one of the city’s 20 administrative districts, located 4.1km from the city.
London’s selection is just as small. A South Kensington leasehold studio apartment, 5.3km from the city, costs $641,733.
In its favour, though, the area has good public transport, being just minutes from the Gloucester Rd tube station, and is surrounded by supermarkets and other amenities.
It has an arts culture and is close to museums, colleges and the Royal Albert Hall.
The suburb is also home to some of the most exclusive real estate in the world.
In Scotland’s capital of Edinburgh, the median price can buy a three-bedroom semi-detached home in the suburb of Blackhall, in the northwest, 6.2km from the centre.
In Dublin, Ireland, the median price can buy a two-bedroom terraced home in a gated development in the suburb of Ballsbridge, 4.7km from the centre. The house has a floor area of 76.9sq m.
Read the full article here: