Latest / Best of Business / Ed McKnight: Opes Partners economist on the Bay of Plenty overtaking Auckland for most expensive properties

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Ed McKnight: Opes Partners economist on the Bay of Plenty overtaking Auckland for most expensive properties · Best of Business

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  Speaker 2: Move over.
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  Speaker 3: Auckland Bay have Plenty officially the most expensive place in
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  Speaker 3: the country to buy a house. Today, new Trade Mean
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  Speaker 3: data shows Bay Plenty has the highest average asking price
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  Speaker 3: in the country nine hundred and sixty three thousand dollars.
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  Speaker 3: That's eleven k more than Auckland. Auckland, by the way,
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  Speaker 3: has had that title for basically a decade. Ed mckknight's
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  Speaker 3: resident economist at Opah's Partners joins me, tonight ed, good evening,
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  Speaker 3: Great to be here, Ryan. So is this Bay Plenty
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  Speaker 3: getting more expensive or is this Auckland price is still
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  Speaker 3: dropping or both?
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  Speaker 2: Well, there's a couple of things going on. First of all,
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  Speaker 2: we've got to be a bit clear that we aren't
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  Speaker 2: talking about asking prices here. And of course you can
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  Speaker 2: ask however much you want for your house. It doesn't
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  Speaker 2: mean you're necessarily going to get it. But what we
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  Speaker 2: are seeing at the moment is, right now, there are
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  Speaker 2: quite a lot of reasonably expensive properties for sale over
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  Speaker 2: there in the Bay of Plenty. Up here in Auckland,
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  Speaker 2: we are seeing quite a fit cheaper properties for sale.
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  Speaker 2: We have had our townhouse boom, and so because Auckland
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  Speaker 2: property prices have been very expensive in the past, the
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  Speaker 2: market has responded. We've now got some cheaper properties on
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  Speaker 2: the market. That's why you see that difference in asking price.
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  Speaker 2: What I will just say before people get their hopes
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  Speaker 2: up too much, there is still quite a large difference
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  Speaker 2: between Auckland and the Bay of Plenty when it comes
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  Speaker 2: to sale prices. That gap has narrowed over the last
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  Speaker 2: ten years, but the median sale price of a house
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  Speaker 2: in Auckland is still about one hundred and fifty grand
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  Speaker 2: more than over in the Bay of Plenty.
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  Speaker 3: So the vendors and bayo Plenty just greedy.
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  Speaker 2: Not necessarily. It might be that it just so happens
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  Speaker 2: that right now and you see this. Sometimes it just
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  Speaker 2: so happens that there are larger houses for sale at
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  Speaker 2: the moment, whereas you might have smaller ones over here
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  Speaker 2: in Auckland, and you do need to pay attention or
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  Speaker 2: just be a bit careful with asking prices. For instance,
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  Speaker 2: over the last twelve months in Gisbon, the average asking
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  Speaker 2: price is down thirty four percent year on year. Now
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  Speaker 2: does that mean that Gisbon. House prices have fallen off
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  Speaker 2: a cliff, and everybody's house is worth a third less. No,
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  Speaker 2: it just happens that the makeup of houses has changed.
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  Speaker 2: The houses that sold twelve months ago aren't the same
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  Speaker 2: as the houses that are selling this year. It just
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  Speaker 2: so happens, thus smaller or cheaper.
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  Speaker 3: Also, on trade Me and other sites like it, they
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  Speaker 3: don't necessarily list and asking price, do they, So it's
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  Speaker 3: it only well, presumably would only take into account those
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  Speaker 3: that give one.
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  Speaker 1: Oh no.
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  Speaker 2: What happens in the back end when a real estate
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  Speaker 2: agent goes in and pops that property online is they
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  Speaker 2: will put an indication of the price they are seeking,
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  Speaker 2: because even if the property goes up for sale at
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  Speaker 2: auction or deadline sale, people still need to be able
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  Speaker 2: to filter and say, okay, I'm looking for a property
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  Speaker 2: between six and seven hundred thousand dollars. And even if
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  Speaker 2: the listing pops up and says auction, the real estate
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  Speaker 2: agent still had to say, this is the ballpark what
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  Speaker 2: they're aiming for.
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  Speaker 3: Right, So they would give an actual number, a ballpark number,
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  Speaker 3: or to range.
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  Speaker 2: Yeah, that's right. And you might remember about a year
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  Speaker 2: or so ago there was a website that popped up
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  Speaker 2: a couple of young kids who put one live that
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  Speaker 2: managed to pull out from trade me what the real
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  Speaker 2: estate agent had actually put into the website. Somehow they'd
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  Speaker 2: got into the back end and looked at the code
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  Speaker 2: or something along those lines, and they got shut down
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  Speaker 2: pretty quickly because real estate agents weren't happy about that.
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  Speaker 3: No, they don't like us knowing the truth to Thank you,
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  Speaker 3: Ed McKnight, Resident economists at Openh's Partners.
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