Auckland house prices to stagnate in 2016 but rest of NZ will take off, pundits say
2016 may be the year soaring house prices become no longer just an Auckland problem.
New Zealanders who live outside Auckland are being warned: 2016 could be the year your property prices boom.
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Auckland’s house prices have been the standout performer over the past few years.
Real Estate Institute figures show Auckland’s median house price was up 19 per cent over the year.
Excluding Auckland, the national median rose just 4 per cent.
But commentators say Auckland house prices will significantly soften over 2016, as the rest of the country ramps up.
Bank of New Zealand chief economist Tony Alexander said outside Auckland, the rest of New Zealand could be in for house price rises of 15 per cent to 20 per cent over 2016 due to low interest rates, population growth and the effect of Aucklanders moving out of the city.
That would probably be enough to worry the Reserve Bank, he said.
Property investor and commentator Olly Newland said Auckland’s prices had already started to level off. But he said in other parts of the country, prices would start to climb steadily over 2016.
“Prices are so much cheaper, there is good buying.”
He said commercial property would also have a strong year.
“Returns are still two or three times that of residential and people are waking up to the fact that a block of shops or a small factory will produce twice or four times as much as a house.”