The Bays – Which Suburbs Have Performed The Best

You may remember reading in the October 2010 post titled 'Property Prices At A Glance' that Orakei looked to be performing well compared to St Heliers, Glendowie, Kohimarama, and Mission Bay. As can be seen in the following graph, Orakei continues to perform and is the outright winner in median price growth over the previous 4 months. Want to know how much your house is worth without seeing a real estate agent?....Free Online Property Appraisal....Make sure you see this one.

The other winners are St Heliers and Kohimarama. Though prices in both these suburbs remain stable with a slight tilt upwards in the curve, median prices could lift further in St Heliers and Kohimarama because of improving sale numbers in each of these localities.

Glendowie is the only suburb where both median prices and sales numbers (found in previous report below) have fallen. Part of the reason for the drop in the number of sales in Glendowie is the low number of properties (currently 33) for sale in the area. The drop in price to some extent can be explained by fewer higher priced properties coming onto the market.

The same could be said for Mission Bay which has also seen a drop in median property prices. Mission Bay is also similar to Glendowie in having a low number of properties for sale (currently 38). Unlike Glendowie however, the number of properties successfully sold in Mission Bay continue to rise. If this trend continues then increasing sales reflect increasing demand. Demand creates buyer competition. Competition increases price. Ever wondered how much a property sold for in your area of interest? Now you can see for free. Sales Statistics....Be sure to have a read.

The following two charts have been included for you to very quickly gain an insight into median property prices (both overall and by the number of bedrooms a house has), sale numbers, and price ranges in your area of interest.

In a nutshell, property prices in The Bays have a reasonable likelihood of holding firm. Further support comes from economists largely agreeing that rents will likely increase over the course of 2011, mortgage interest rates will remain low in the median term, and there is a growing shortfall of properties to soak up Auckland's growth. To take the phrase uttered by the New Zealand Institute of Economic Research Chief economist, Shamubeel Eaqub, to Alistair Helm, the CEO of realestate.co.nz: “fundamentals [will catch up] with house prices rather than house prices crashing to meet the fundamentals”. That is good news for The Bays.