Auckland bucks house price trend

September was a "funny little month" with a relative lack of sales activity, possibly due to the election. Photo / Brett Phibbs

Property price growth slowing nationwide but shortage of stock and immigration keep biggest city more buoyant.

The pace of property price increases has eased nationwide, with an expert citing the effect of Reserve Bank lending restrictions and higher interest rates.

But Auckland prices are not dropping at the same rate, with a shortage of housing stock and immigration pressures keeping prices in our biggest city more buoyant.

Latest Real Estate Institute figures show the Auckland region's median sales price edged $950 higher between August and September, to $615,000. However Auckland prices were up 8 per cent year-on-year, from $570,000 to $615,000, compared with a year-on-year increase of 10.1 per cent in April.

Previous article: House sales up 7.8pc - REINZ

Nationally, prices stalled in the last month at $420,000 and were up 5 per cent year-on-year from $400,000 in September 2013 - compared with a 10 per cent year-on-year jump in April.

Institute chief executive Helen O'Sullivan said it was the first time she'd seen such steady prices for some time, though she was not reading into Auckland's month-on-month data at this stage.

September was a "funny little month" with a relative lack of sales activity, possibly due to the election.

"The pace of price increases has eased significantly, with the annual rate of increase now only 5 per cent, compared to more than 10 per cent in April," Ms O'Sullivan said.

"I think key impacts in the market have been the LVR restrictions imposed 10 months ago, the three interest rate increases, and possibly an election impact ... "

She said a lack of listings was also holding the market up. "People are ready to buy. They've got finance, they know what they're looking for, they just can't find it."

She said one of the most interesting aspects about the Auckland market was that increasing prices were not encouraging house owners to sell their homes.

Wendy Alexander, chief executive of Barfoot & Thompson, said she had seen a consolidation of median prices but no indication of prices dropping away.

"Because the election was later in the year the spring flush has come quickly after it and I think it will last until Christmas."

Read the REINZ September release here:

$1.1m state house to be bowled

A tired, original condition former state house has sold to a developer for $1.125 million in Auckland - nearly twice its capital valuation.

Bayley's agent Peter Cashmore said the Mt Roskill property - a 1950s three-bedroom home in Bremner Ave - had been picked up for its potential.

"I was extremely surprised that it would go for that. But I guess from the development point of view, with it being an 867sq m section, it's potentially subdividable.

"You could build a house at the rear or demolish the house and build two new townhouses."

The latter is exactly what the winners of the property - confirmed to be developers - are set to do. The home was part of a deceased estate and the sale was made on behalf of the Public Trust.

- additional reporting Vaimoana Tapaleao