Valuation Rodney Ltd

Remove Doubt - Create Certainty on your Next Property Decision

Office (09) 427-6020
Mobile (021) 055-3485

Property News

Glenfield & Birkenhead Market Commentary.

Glenfield/Birkenhead Median Sales Price graphIn the Northcote, Birkenhead, Birkdale, Beach Haven and Glenfield areas, the residential market during 2011 gathered momentum with increases recorded in the number of sales and the median sales price, particularly in the first home-buying/investor market; due to decreases in new construction, increase in population, rising rental prices, stable mortgage interest rates and overseas based investors causing a higher demand for properties exceeding supply. 2012 built on the gains from 2011 with elevated interest in properties in this region, and we have seen some acceleration in the upward trend of values, a decline in the average days to sell and large numbers of auctions confirming a heated seller's market continuing through 2013.

High competition, especially at auctions, of quality or refurbished properties was commonplace throughout mid 2013 resulting in some instances of sales prices well above the market rate being achieved. Many cashed-up buyers, for example those trading down to reduce debt and cash-rich immigrants and overseas investors were pushing prices higher than their natural market levels, making this market segment difficult for first home buyers who generally have higher levels of borrowing. The introduction of Loan to Value Restrictions (LVR) in late 2013 has tempered interest from mostly first home buyers and we have seen a fall in Auction activity and new listings as demand has fallen in the nine months.

November 2014 saw sales numbers recover to be up 12% compared to a year ago as an increase new listings for spring became available. Across all of Auckland however, the main driver however continues to be a shortage of housing stock and with increased migration to this region this correction is unlikely to continue beyond the short term. Only other economic factors such as rising interest rates, falling employment and slow economic growth will see any reversing trend in median prices emerging in the medium term.

Birkenhead: in November 2014, REINZ recorded 62 sales for the surrounding Birkenhead area, compared with 54 in the previous month and 65 a year ago. The median house price was $792,500, down 4.9% from the previous month of $833,500 which appears to be a skewed result due to the mix of sales rather than an overall positive shift in values. The number of days to sell lifted slightly to 31 days (28 days for the previous month). We were seeing strong, positive trends in house values for this area since October 2009, accelerating significantly through 2012, despite some temporary fluctuations, and continuing on into early 2014. However the influence of a shortage of stock and LVR restrictions had seen a slight cooling of values in the past quarter indicating a possible pause in the market and partial correction in values following the heated activity in 2013. October's result may just be a one-off given the increase in new listings for spring, and it will take a number of month's similar data to set any new trends.

Current rentals for a Two Bedroom house ranges from $427-$500 per week, for a three bedroom house $480-$630 per week.

Glenfield: : in November 2014, REINZ recorded 127 sales in the surrounding Glenfield area, up from the 107 sales recorded in the previous month and up on the 104 sales recorded a year ago. The median house price rose to $615,000 from the previous month ($602,500) and also up from the previous record median price of $604,000 recorded in September 2013. The number of days to sell lifted slightly to 31 days compared to the 29 days last month and also recorded a year ago. There has been historically a rapid turnaround of properties with especially high numbers of auctions taking place, many of which were called early due to buyer interest. A very popular region of Auckland, and we have seen high activity especially in the low to mid price range favoured by first home buyers and investors, and throughout 2013 this area has seen considerable market activity and continued dire shortage in new listings reflected in the falling days to sell data. Recent reports indicate that the introduction of LVR has seen auctions are not as well attended as they have been last year and we are seeing a slight cooling of values following the heated activities of 2013. Any future increase in values will depend largely on the continued influence the LVR changes have on this market. An increase in listings for spring has had some influence in a sudden surge in activity for October. Time will tell if this develops into any positive trend.

Current rentals for a Two Bedroom house ranges from $380-$430 per week, for a three bedroom house $450-$500 per week.

For information about other suburbs covered by Valuation Rodney Ltd, click on the links below:

Glenfield/Birkenhead Median Days to Sell graphClick to download full report including recent sales data (PDF Format)

Contact Valuation Rodney Ltd on
(09) 427 6020 or Mobile (021) 055 3485

Book a valuation or contact us by email , or Freephone 0800-463 378
to speak with our Property InDepth Customer Services Team

Property InDepth - First in valuation
Winners of the Property Institute of New Zealand Innovation of the Year Award 2008