North Shore & Milford Market Update For September 2021

North Shore Market Begins To See a Spring Lift as Alert Levels Ease

Median prices for residential property in North Shore City increased by 29% to $1,300,000 in September 2021 compared to $1,031,275 in September 2020, according to the latest data from the Real Estate Institute of New Zealand (REINZ).

Jen Baird, Chief Executive at REINZ, says: “September was always going to be a month to watch as we assess the impact various COVID-19 Alert Levels have on the New Zealand property market. What the data shows, is that confidence remains high, buyer demand is still strong, and outside of Auckland, buyers will be pleased to see more property coming to the market. Prices are proving resilient, with some regions noting a decrease in the number of first home buyers, in part due to rising prices.

“Various levels of lockdown across New Zealand have influenced activity in the real estate market this month lending to mixed results. We expect to see a rise in activity as restrictions ease further, especially in Auckland. Demand suppression measures introduced this year, recent moves by the Reserve Bank to increase the OCR, and COVID-19 restrictions to real estate activity are creating headwinds for house prices and we can see that the pace of price rises has slowed over recent months,” Baird concludes.

The number of residential property sales in North Shore City decreased by 67.33%, from 551 in September 2020 to 180 in September 2021 – the fewest properties sold in a September month. September’s sales are a result of varying lockdown alert levels across the country that have curtailed real estate activity as we all take action to prevent the spread of COVID-19.

It’s interesting to note that the drop has not been as sharp as in the first full lockdown back in 2020. The use of digital solutions across the real estate profession has enabled activity to carry on to a degree, with virtual auctions continuing throughout September and October.

While spring activity may have been delayed during September, Harcourts Milford have already experienced a high volume of new listings, with many of them selling prior to auction or within 2 weeks of coming to the market. Interest in the market has remained high, and we expect to see this reflected in the data post-lockdown as more properties are listed resulting in an increase in sales.