Auckland housing market

[Valuegrowth]

Just like other assets property market also has cycles. I believe currently property market in Auckland, Christchurch and Queenstown are more vulnerable than other areas. If we analyse history of different types of assets there had been boom and bust period time to time. Property is not exception. Auckland housing market is in a bubble stage now. We can expect bust in some point.

DYOR

[troyvdh]

mmmm...I listened to Mr Gaynor talking at a recent meeting of folk....If Im correct he indicated that Auckland "house prices" are fairly in line with overseas seas cities performances....perhaps even Auckland has been less spectacular ..than some....Yes I and most posters would agree this is nuts....BUT would anyone stand in front of a moving train...that hasn't stopped for at least a hundred years (in NZ anyways).

Roger vorno Entrep ..all good stuff.

Dear MW...do you own property...how long for...I have for decades...I could go on here...but I wont.Cheers anyway.

PS....remember the old saying "they aint making anymore of the stuff (land) except of course in Holland.

[vorno]

PS....remember the old saying "they aint making anymore of the stuff (land) except of course in Holland.

Holland... I imagine that could be quite an interesting place to visit/live!

[JBmurc]

Auckland housing maybe inline with international city prices but it's extreme on Auckland household income levels 2nd most expensive in the world

[Bjauck]

Auckland housing maybe inline with international city prices but it's extreme on Auckland household income levels 2nd most expensive in the world

Most countries have a capital or major "international" city, in which house prices are more expensive than the "provinces". NZ is different from most because of the lack of regulation or stamp duties in relation to residential house purchases by foreign based purchasers. In addition Auckland has 31% of NZ's population. Compare that to London, which has about 16% of the UK population and Sydney which has about 20% of the Australian population. It means that native Aucklanders have fewer other NZ options.

[Harvey Specter]

Most countries have a capital or major "international" city, in which house prices are more expensive than the "provinces". NZ is different from most because of the lack of regulation or stamp duties in relation to residential house purchases by foreign based purchasers. In addition Auckland has 31% of NZ's population. Compare that to London, which has about 16% of the UK population and Sydney which has about 20% of the Australian population. It means that native Aucklanders have fewer other NZ options.

Alternatively if you look at it on a state by state basis in Australia (and probably most US as well), the state capital is about 50% of the state population. Given the free flow between NZ and Australia (for NZ/Oz residents anyway), should be we viewed any differently from an Australian state.

[Bjauck]

Alternatively if you look at it on a state by state basis in Australia (and probably most US as well), the state capital is about 50% of the state population. Given the free flow between NZ and Australia (for NZ/Oz residents anyway), should be we viewed any differently from an Australian state.

I disagree with you in relation to NZ to Australia. There may be a free flow of people compared with other foreigners going to Australia, but NZers in Oz certainly do not have same status as OZ inter-state migrants. Especially for people with fewer financial resources and/or non-professional jobs, moving from NZ to Australia is definitely not akin to an Interstate move. Apart from the obvious necessity for passports and a trans-ocean move and journey to what is still a foreign country, major differences are the NZD/AUD exchange rate which can fluctuate wildly, and the sub-migrant status in OZ for Kiwis (access to social services is limited for special-category NZ migrants.) Those hurdles just do not exist for interstate moves in Australia (or the USA for that matter). I stick by my original post - the access to alternatives for native Aucklanders is more limited than for Sydneysiders and Londoners.

One way to help ease the pressure on house prices in Auckland would be to introduce regulations or taxes on foreign-based foreign buyers purchasing residential real estate. Of course, foreigners who are NZ residents should still be free to purchase housing. A grey area would be NZ citizens living overseas - perhaps they would be exempt from the foreign-based residential house purchasers' regulations, provided they return to NZ within a certain period after their purchase.

[Valuegrowth]

I believe property market in Queenstown and Auckland could bring another financial crisis. History will repeat in a different manner. Next crisis could become worst than previous occasions. One of the main reasons for higher asset prices is availability of easy credit globally. Almost all the crises in the past were link to property related and credit related assets and instruments. We saw different types of credit, property and financial crises in countries such as Dubai, Ireland, Iceland and other western countries etc in the past.Even in New Zealand many finance companies went into receiverships. In addition, these countries have experiences in asset crashes such as property crash. We cannot avoid different types of cycles in the financial system as it has not fixed yet. Even Chinese property market is more vulnerable now.

http://economyandmarkets.com/markets...domino-effect/

Look Out! Is China’s Real Estate Bubble Ready To Burst?


http://www.scoop.co.nz/stories/HL150...ith-rankin.htm

Is Easy Credit the Problem? | Keith Rankin

My ideas are not a recommendation to either buy or sell any property, security, commodity or currency. Please do your own research prior to making any investment decisions. Please note that I do not endorse or take responsibility for material in the above hyper-linked sites.

[baller18]

Auckland housing maybe inline with international city prices but it's extreme on Auckland household income levels 2nd most expensive in the world

I am pretty certain, house prices on incomes levels is definitely not 2nd most expensive in the world.
I have been lucky enough to travel heaps, due to my gf being a flight attendant and my tickets being 5% of the normal price. This has allowed me to meet a lot of friends from asia and my girlfriend lives in hong kong as she works for cathay pacific.
A tiny as studio in central hong kong will cost you 1million nzd and I can assure you average salary of people in hong kong is less than what it is in NZ. Studio not even a house!
A new grad from taiwan makes 22k TWD which is just nearly $1000 NZD. If you wanna live in areas in taiwan which is like epsom, mt eden and etc, for a 70sqm apartment, you will be paying north of 2million NZD.
So auckland house prices is definitely not expensive on incomes levels when comparing it to the rest of the world, still, it is definitely expensive in relation to our incomes...

[baller18]

Don't think houses will double every ten years, as it will just not be affordable to anyone. However, I do think it will increase by 50% in the next ten years, it has to be more than inflation.
Impossible for it to double every tens years. Which means a house in epsom and mt eden, the minimum price you would be looking at 3million? Thats insane. Herne bay 4-5 million?