'Perfect storm' ideal time for first-home buyers to strike

The number of Auckland suburbs with a median property value of more than $1m reached 99 this month. Photo / Doug Sherring

Reserve Bank says lending to investors has halved in four months

Nearly 100 Auckland suburbs have a median value of more than $1 million new data shows.

Figures from qv.co.nz E-valuer show Auckland has 99 million-dollar-plus suburbs and just three suburbs under $500,000.

Despite a reported cooling in the market 10 more suburbs have joined the million-dollar club in the past two months.

West Auckland gained its first $1m suburb with West Harbour ticking over to $1,010,600 this month.

QV spokeswoman Andrea Rush said recent improvements to infrastructure in West Harbour had increased value.

"The area has seen a lot of new construction of large homes with sea views as well as the development of Hobsonville Point which has brought not only new housing but also new schools and amenities," Rush said.

"The widening of the North Western and the Upper Harbour motorway have made the commute faster from there to central Auckland and the North Shore."

Sunnynook and Torbay on Auckland's North Shore are also new $1m suburbs.

Sunnynook had seen a meteoric rise in value over the past few years mainly because of the popularity of the Westlake Boys and Westlake Girls schools zones, Rush said.

Torbay is one of the more northern of the North Shore's eastern bays popular for their proximity to the beach and coastal sea views.

Ellerslie had also ticked over to join the $1m club.

Rush said the suburb was close to the city and a established town centre with a restaurant and cafe scene and an established community with good amenities.

"It's also in good school zones and close to other popular eastern suburbs such as Remuera," she said.

Botany Downs in East Auckland had also recently passed the $1m mark.

Rush said large, relatively modern homes and closeness to the large Botany Downs town centre - one of Auckland's largest retail shopping areas - was a drawcard for buyers.

Despite growth in the higher end properties, Rush said there was a "tale of two markets" in Auckland with strong demand in the $1.5m-plus bracket but a drop in demand for entry level investor stock.

"We are continuing to see strong demand in the $1.5m-plus bracket and the new build market which is resulting in high sales prices being achieved for these properties," Rush said.

"But at the same time there's been a significant reduction in demand for entry level investor housing stock particularly in Manukau over the past month, with prices dropping back by as much as 20 to 30 per cent."

Rush said the recent sale of a two-bedroom character sea-side apartment in Devonport for $3m and a 1970s townhouse in Freemans Bay for $2.2m were examples of the high prices still being achieved by certain properties.

She said higher end homes that would have sold for $1.9m to $2.2m a year ago are now selling for $2.8m to $3m.

In 2007, 80 of Auckland's 210 suburbs cost less than $500,000 on average. Now it's three - Wellsford, Parakai and Auckland central, the latter with a large proportion of small apartments.

Auckland has two suburbs with a median value of more than $2m with waterfront suburbs Herne Bay at $2,393,500 and neighbour St Marys Bay hot on its heels at $2,219,450.

The central suburb of Remuera is expected to tick over next with a current value of $1,905,600.