Auckland suburbs Kumeu and Omaha are 72km and half a million dollars apart, but 12 months ago the only difference between them was geographic, with the median property value for both sitting at around $1.5 million.
But figures from the latest OneRoof Property Report show Kumeu suffered the country's biggest drop in property values year on year, while Omaha bucked Auckland's slump and saw the city's biggest rise in property prices - up 16.9 percent to $1.62 million.
Kumeu's median value dropped an astonishing 30 percent in the last 12 months, from $1,595,000 to $1,110,000. Behind this $485,000 wipe-out has been Kumeu's rapid change from a predominantly rural and lifestyle suburb on the city fringes to a more typical residential neighbourhood.
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Kumeu is New Zealand's worst performing suburb of 2019 - the result of huge changes in the suburb.
Agents have blamed "uncontrolled development" and a "balloon in supply" for driving down Kumeu's prices.
The suburb had been home to numerous lifestyle blocks, which had kept the median value reasonably high, until Auckland Council opened it and neighbouring Huapai up as future housing development areas.
Kumeu real estate agent Graham McIntyre told OneRoof earlier this year "we've got over 300 houses available for purchase at any one time".
Eighteen months ago four-bedroom homes were rarely on sale under $990,000. Now brand-new four-bedroom houses could be picked up for $799,000, he said.
OneRoof editor Owen Vaughan says: "Homeowners in Kumeu may be waking today thinking that their biggest asset is suddenly worth half million dollars less than it was a year ago. They should take comfort that that's not the case.
"Lifestyle block properties in the suburb are still selling for healthy prices. In fact, the suburb's biggest sale in the last 12 months was for $2.575 million.
"However, the increase in subdivisions and the construction of modestly priced residential homes have altered the dynamics of the suburb, with the majority of Kumeu homes now at a price point more in line with neighbouring residential suburb Hobsonville Point, whose median value is $920,000."
First home buyer effect
James Wilson, director of valuation at OneRoof data partner Valocity, said the value changes in Kumeu could be seen elsewhere in the city. Neighbouring Whenuapai, which had also once been home to lifestyle blocks, was now a first-home buyer hotspot, with cheaper new builds responsible for the drop in its median value. Similarly, Albany had been launched with a mix of larger and smaller new builds, and it was cheaper blocks doing the most sales at the moment.
Omaha has seen property values jump 16.9 percent in the last 12 months.
The second biggest faller in Auckland, and New Zealand, was Westmere, where the median value of all properties in the suburb dropped 10.4 percent in the last 12 months to $1.6 million. Also cooling off were Long Bay (down 9.6 percent to $1.42 million); Glendowie (down 8.4 percent to $1.52 million); and Ponsonby (down 8 percent to $1.6m). The biggest drop in property values outside of Auckland was in Westmorland, where the median value dropped 6 percent year on year to $710,000.
Wilson cautioned against reading too much into the drops in Auckland's housing market. "By no means are all homes crashing in value. This data is just showing what kinds of stock is selling," he said.
Omaha shines
Defying the squeeze in Auckland's higher value suburbs was Omaha, where the median value of all properties was up 16.9 percent in the last 12 months to $1.62 million. Vaughan said: "Omaha's reputation as a beach retreat for wealthy Aucklanders and limited stock have fuelled demand and boosted prices. Moving house may be off the cards for some, but buying a beach house remains a desirable option in current market conditions."
However, the 16.9 percent surge is a long way behind the price leaps seen in the country's hottest property market.
Manawatu-Whanganui is home to four of the fastest growing suburbs in New Zealand. The region's top performer was Woodville where property values jumped 35.3 percent in the last 12 months to $230,000. Not far behind is neighbouring Dannevirke, where the median value was up 32.5 percent to $265,000.
Vaughan said: "Houses in Manawatu-Whanganui are considered very affordable compared to property in other regional centres, with first home buyers representing more than 30 percent of new mortgage registrations in Whanganui alone. Affordable price points and strong rental returns have caught the eye of investors, with the buyer group significantly more active in the region than two years ago."
Property Brokers agent Jude Challies says Woodville has no spare sections available Properties there go for half he price of what's on offer in nearby Palmerston North.
She says a planned motorway upgrade will drive demand in the suburb. Since the road upgrade had been announced, first home buyers and investors started showing increased interest, she says.
“The investors are doing really well, and I had an investor coming to town who’s snapping up sections.”
The sudden price rise is frustrating for the buyers but great for those who are selling, she says. “It’s an exciting time and it’s been a long time coming.”
Top 10 risers: 12-month change in median values
- Waverley, Taranaki, up 36 percent to $170,000
- Woodville, Manawatu-Whanganui, up 35.3 percent to $230,000
- Dannevirke, Manawatu-Whanganui, up 32.5 percent to $265,000
- Mangakino, Taupo, up 31.6 percent to $250,000
- Tokoroa, Waikato, up 31.6 percent to $250,000
- Castlecliff, Manawatu-Whanganui, up 30.2 percent to $215,000
- Ohakune, Manawatu-Whanganui, up 30.2 percent to $345,000
- Whanganui Central, Manawatu-Whanganui, up 28.9 percent to $245,000
- Te Anau, Southland, up 28.4 percent to $475,000
- Wairoa, Bay of Plenty, up 34 percent to $1.35m
Use the interactive below to see how house prices in your suburb compares to those in the rest of New Zealand. The interactive measures the growth in median values for every suburb in New Zealand and highlights each suburb's biggest sale in the last 12 months.
