Dunedin Property Report - May 2021 (April 2021 stats)
April saw a slight increase in the median sale price to $628,750 from $620,000 in March. As expected, the number of sales remained low at 138 and the median number of days on the market increased from 22 in March to 28 in April.
This reflects our observations at open homes with signs that the government’s ongoing property rule changes are having an impact on buyer behaviour, particularly investors. It is important however to take into account school holidays and long weekends when analysing these numbers as they do contribute to how long properties take to sell. We will wait to see if this becomes a trend over the coming months.
Listing numbers on realestate.co.nz have remained constant at around 285 indicating that there is somewhat of a balance between listings coming to market and the number of sales taking place.
As mentioned above, buyer activity is changing a little with many investors going into a holding pattern and others shifting their focus to new builds to take advantage of the recently announced incentives favouring investment in new builds. There is also good interest in recently rezoned medium density areas of the city.
There are indications from banks that they are doing what they can to support new builds with ASB announcing 1.79% interest rates for new build home loans.
We are gaining confidence that this combination of factors is starting to stimulate land release and building activity in the city with a number of new developments recently launched or in the process of approval. We are hopeful that this will begin to address the housing shortage in Dunedin.
Joe Nidd AREINZ
Liz Nidd FREINZ