Auckland house prices and Rents rise strongly - Barfoot

Wed, 04 Nov 2009 12:26p.m.

House prices in Auckland are at a 22-month high and rents in the region also rose strongly last month, says real estate company Barfoot & Thompson.

It put the average house price in the region at $544,745 in October, up 5.8 percent from September, and 4.8 percent up on a year earlier.

"The prices achieved in October were exceptional," Barfoot & Thompson managing director Peter Thompson said today.

Average prices comparable to last month had not been seen since December 2007.

"In October the whole market lifted to a higher level," he said.

"Sellers returned to the market in strength, and we listed 1676 new properties in October, the highest number in a month since March 2008.

"At the same time buyers responded to attractive interest rates and greater choice, and we sold 871 properties, an increase of 73 percent on the number sold in the same month last year," Mr Thompson said. "It is a sure sign Aucklanders have shrugged off their concerns about the future, and are moving forward with their plans around home ownership."

Rental activity was also strong, with the $403 average weekly rent achieved by Barfoot & Thompson's property management division up 4.9 percent, or $19, from September.

It was the first time average weekly rents had climbed above the $400 mark. At the same time last year the average was $385, Mr Thompson said. It was the highest rent rise seen by the company in seven years and achieved in a market where there was a good deal of choice.

During the month the company let 760 houses or units, up 8.4 percent on the previous month.

"While we would anticipate that weekly rents might ease as we move closer to the Christmas and holiday break, it could well be an early sign that rentals are also about to move to a higher level," Mr Thompson said.

NZPA

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