One in five houses sold last year fetched more than $1 million.
Figures from the Real Estate Institute of New Zealand (REINZ) show that of the 85,337 properties sold in 2020, 18,181 broke the million-dollar mark – up 68% on the year before and up 56% on 2016’s total of million-dollar-plus sales, when the market was last at its peak.
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The majority of million-dollar-plus sales, 13,125, were in Auckland, with 2020’s total up 71% on 2019’s and marking the first time Auckland saw more than 10,000 million-dollar-plus sales.
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Bindi Norwell, chief executive of REINZ, said more than two-thirds of the million-dollar-plus sales took place in the last six months of 2020.
"When Covid-19 first hit New Zealand’s shores, no one would have predicted that the year would become a record breaker for property prices," she said.
REINZ chief executive Bindi Norwell said 2020 was a record-breaking year. Photo / Supplied
Norwell said the figures showed strong price growth outside Auckland.
Of New Zealand's 16 regions, 15 saw year-on-year increases in the number of properties sold for $1 million or more in 2020. The West Coast was the only exception, with no million-dollar-plus sales recorded.
Regions with the strongest percentage increases in the number of $1 million plus sales year-on-year were Southland, Manawatu-Whanganui and Marlborough.
“The regions saw a 61.5% [year-on-year] increase in $1 million-plus property sales. This is a result of demand continuing to exceed supply in many parts of the country and shows the effect that the shortage of housing stock is having on house prices.”
The post-lockdown sales surge was also felt at the top of the market, with the number of $3-million-plus sales in 2020 more than double seen in 2019.
Auckland $3 million-plus sales jumped from 323 in 2019 to 713 in 2020, while $5-million-plus sales jumped from 59 to 125 over the same period.
7 Monument Road, in Clevedon, South Auckland, fetched $1.24 million at auction last week. Photo / Supplied
The figures come amid a flurry of auction results that show continued heat in the market.
In South Auckland, a renovated three-bedroom house sold last week for $1.24 million – well above the property’s $895,000 2017 rating valuation.
Ray White agent Jay Singh said he had a compelling offer on 7 Monument Road, in Clevedon, just one week after the listing went live.
More than 70 people turned up for the auction. Photo / Supplied
“It was appraised at just under $1 million, but I thought it would go for more than that. The pre-auction offer was $1.11 million and there were six people bidding,” Singh said.
“Last year we sold the neighbouring house, of a similar standard, for $962,000 so that’s how fast it’s moved in 12 months.”
Ken Ralph, Ray White’s auction services manager for the agency’s six East Auckland offices, said he held 20 auctions last week - the biggest January start he’d seen in 30 years.
“We sold 12 out of 20 properties under the hammer, another four selling later, while the final four are now exploring conditional sales," he told OneRoof on Friday.
