December was only slightly behind last year in terms of sales volume with just 15 less sales recorded for the month. There has been a substantial increase in the median sale price over the past year with December 2017 at $380,000 compared to $330,000 in December 2016 (a difference of $50,000 or 15.1%). The graph below shows this trend holding steady over the past two years. The median number of days on the market was 24.
As we see reports in the media of property markets slowing in the larger centres, talk of interest rate adjustments and modifications to loan to value ratio restrictions, it appears we are in for another interesting year in the New Zealand property market.
One of the biggest influences we saw last year was investors being stripped out of the market upon the implementation of the 40% loan to value ratio restrictions. Many of the residential investment properties we listed for sale were purchased by owner-occupiers due to the lack of competition from investors.
This has led to a shortage of rental property in Dunedin with properties available for rent plummeting. As a result, we have seen significant upward pressure on rental figures and in some cases tenants struggling to find a suitable property when their existing tenancy comes to an end.
Joe Nidd AREINZ
Liz Nidd FREINZ