House prices increase

SHARE

THE median sale price for homes in Southland has reached $238,000, a 14% increase compared with May last year, the latest Real Estate Institute of New Zealand (Reinz) figures show.

This is a record high for the region, one of four regions throughout New Zealand to achieve record median prices.

The others are Northland ($450,000), Manawatu/Wanganui ($269,000), and Nelson/Marlborough ($483,250).

Nationally, the median house price rose 6.7% to $540,000.

Reinz chief executive Bindi Norwell said Southland remained a steady market, with a good supply of stock, a steady upward trend in the median price and a solid recovery from the weak market in April.

Prices rose 16% in the Southland district, 14% in Invercargill and 10% in Gore.

On a seasonally-adjusted basis, the median price rose 9% compared with April, indicating the increase in prices was greater than expected for this time of year.

However, sales volumes fell 27% compared with May last year, falling 30% in Invercargill, 27% in Southland district and 8% in Gore.

On a seasonally-adjusted basis, sales rose 7% compared with April, indicating that the lift in sales was greater than expected for this time of year.

Real Estate Institute district forum leader Jon Irving said Southland’s median house price was still half that of the rest of the country.

“It sounds good on a percentage basis, but it’s still a really small increase compared to the national average.

“It’s an anomaly that in one of the most productive economies on a per capita basis, [Southland] has the lowest house prices in the country… however people are seeing much
better value for money here.”

Advertisement