Dunedin Property Report - August 2024

Dunedin Property Report - August 2024 (July stats)

July was a surprisingly active month for Dunedin. Although July is traditionally one of the quieter months, there were 179 sales, which was up from 144 in June and 121 in July 2023. The median sale price remained similar to June, with only a slight dip to $575,000.The most telling figure was the increase in the median days to sell, which was up around 25% to 47. This reinforces the anecdotes of Dunedin real estate agents, who are reporting that listings that have been on the market for some time are now selling more readily as vendors reduce their price expectations. The number of properties available for sale on Realestate.co.nz has dropped around 10% over July with 594 properties available for sale as of writing this report. This is a reflection of the number of properties sold or withdrawn from sale, outnumbering the quantity of new listings coming to the market.

The upper-end of the market remains subdued with 96 properties available over $1m and just 9 sales over $1m in July.

The big talking point in the media is the arrival of much needed economic relief in the form of a reduction in the Official Cash Rate. In the first reduction since early 2020, the Reserve Bank announced a 0.25% drop, bringing the rate down to 5.25%. This prompted an immediate response from the major banks with reductions in borrowing rates, especially on longer terms rates, indicating a strong sentiment that rates will continue to drop in the coming months.

Joe Nidd AREINZ
Owner/Principal

Dunedin Property Report - July 2024

Dunedin Property Report - July 2024 (June stats)

Despite the ongoing nationwide reporting of property woes elsewhere in the country, Dunedin is maintaining the steady trend seen for many months now, with the median sale price holding at $579,000.

There were only 129 sales in June, but interestingly, these sales took a median of just 36 days to sell. This is in keeping with what we are seeing across the Dunedin market, with well priced, widely appealing properties attracting strong interest and those priced above market or with a smaller buyer pool, often taking significantly longer to sell.

The number of properties available for sale on Realestate.co.nz has remained very steady at 665 as of writing this report. This indicates a balance between new listings and the number of properties sold or withdrawn over the past month.

The upper-end of the market remained somewhat subdued with 9 sales over $1m and 24 sales over $750,000.

With the Official Cash Rate remaining unchanged for the eighth consecutive meeting of the Reserve Bank, many commentators are picking that interest rate cuts may be closer than previously thought. Although we don’t expect this to boost house prices significantly, we do expect turnover to increase as people’s fear of increasing interest rates subsides and making the move onto, or up the property ladder becomes a more appealing proposition for many.

Joe Nidd AREINZ
Owner/Principal

Dunedin Property Report - June 2024

Dunedin Property Report - June 2024 (May stats)

The median sale price for Dunedin in May was $570,000. This is lower than April but in line with the medium-term trend as illustrated in the graph below.

The median number of days on the market for properties sold in May was 44 which is up from recent months, but still a little lower than May 2023.

The number of properties currently listed on RealEstate.co.nz has continued to drop off slowly with 671 properties available in Dunedin as of writing this report.

There were 166 sales for the month, similar to recent months and to this time last year. The upper-end of the market saw a marked decrease in activity with only 19 sales over $1m and less than 20% of properties selling for more than $750,000 down from around 35% last month.

The shift in Dunedin’s housing stock due to planning changes and a boom in townhouse construction is now noticeable in the stats with more than 10% of sales being attributed to townhouses or apartments in May.

With much attention on pricing pull-backs in the larger centres, Dunedin has continued to buck the trend by holding steady. First home buyers are continuing to be represented well in the market and out of town investors are looking to Dunedin as an affordable, lower risk option.

Joe Nidd AREINZ
Owner/Principal

Dunedin Property Report - May 2024

Dunedin Property Report - May 2024 (April stats)

Dunedin’s median sale price increased to $629,000 in April. This is an increase of 9.4% year-on-year.

The median number of days on the market for properties sold in April was 34 which is up a little from 30 in March but still down significantly from 43 in April 2023.

The number of properties currently listed on RealEstate.co.nz has dropped from last month’s high of 707 to 685 as of writing this report.

The number of sales in April was once again up significantly from 134 in 2023 to 161.

There were 24 sales over $1m for the month and almost 35% of sales were over $750,000, up from around 25% last month. Properties over $1m took a median of 51 days to sell with properties over $750,000 taking a median of 36 days to sell.

Six townhouses sold in April with 33 currently available for sale. Section sales are beginning to pick up with six sales in April ranging in price from $299,000 to $625,000.

Investor enquiry continues to increase with both seasoned investors and “mum and dad” investors showing stronger interest than in recent months. Cost of finance and access to borrowing remain hurdles for many with some investors reportedly acting now to purchase before further lending restrictions are enforced.

Joe Nidd AREINZ
Owner/Principal

Market Update
with Laura and Kerry

What we’ve seen going on in the Dunedin market recently.

Dunedin Property Report - April 2024

Dunedin Property Report - April 2024 (March stats)

Dunedin’s median price remained at $595,000 in March, an increase of 4.4% year-on-year. 

The median number of days on the market for properties sold in March was 30 which is 25% less time to sell than in March 2023 and a very good indicator of the improved market sentiment, despite buyers having significantly more property to choose from.

The number of properties currently listed on RealEstate.co.nz is 707, up from 677 this time last month, providing plenty of choice for buyers.

The number of residential sales in March was 154, a healthy increase of 34% compared with 115 in March 2023.

There were 18 sales over $1m for the month and close to 25% of sales were over $750,000. This shows continuing movement in the upper end of the market, but many of these properties are taking noticeably longer to sell.

The recently announced rental reforms, changes to deductibility rules, along with strong indicators of coming interest rate reductions are providing some hope to investors looking to either buy their first investment or grow their existing portfolio. Enquiry is still subdued on investment properties but interest is picking up with some good results still being achieved where returns appeal to those looking to act early.

Joe Nidd AREINZ
Owner/Principal

Market Update
with Laura and Kerry

What we’ve seen going on in the Dunedin market recently.

Dunedin Property Report - March 2024

Dunedin Property Report - March 2024 (Feb stats)

The median price in February was $590,000, up from $570,000 in February 2023, continuing the steady price trend of the past year.

The median number of days on the market was 39 which is 23 days fewer than last February. This shows the pickup in activity in the Dunedin market, despite there being more listings to choose from.

The number of residential sales in February was 186, which is an extraordinary 39.8% increase from February 2023 and the greatest indicator of improvement in the Dunedin market.

Despite the strong sales data, the number of listings available continues to rise sharply with 677 properties available for sale as of writing this report, up almost 20% from this time last month. 

There were 17 sales over $1m for the month and close to 28% of sales were over $750,000, continuing to reinforce the resilience shown in the upper end of the market.

Debt to Income ratios (DTI) are a hot topic in the sector at the moment with many trying to pick the impact that these are likely to have and who will be affected most. The Reserve Bank proposal is that lending will be limited to 6 x income for owner-occupier lending and 7 x income for investment lending with an exclusion for new homes. The reduction in interest rates and return of interest deductibility is providing some welcome relief for investors but many are expressing concern about how the DTI ratios may impact on their future plans.

Joe Nidd AREINZ
Owner/Principal

Dunedin Property Report - February 2024

Dunedin Property Report - February 2024 (Jan stats)

The median price in January was $575,000, up significantly from $515,000 in January 2023.

The median number of days on the market was 53 which is seven days fewer than last January, reflecting the period of inactivity over the holiday period.

The number of residential sales was just 84, up on the 70 sold in January 2023 but characteristically low, again due to the gap in activity over the break.

The most significant metric this month is the increase in stock from 491 homes available for sale this time last month to 568 as of writing this report. This increase in available stock is a welcome relief to buyers who are starting to feel real competition in the market again as people attempt to buy in anticipation of potential rising prices.

We continue to see the upper end of the market performing well with almost one third of sales over $750,000 and more sales over $750,000 than there were under $500,000.

The Dunedin draft Future Development Strategy continues to capture attention as the city establishes how and where Dunedin will grow over the next 30 years. It aims to provide more housing and industrial land, and a more sustainable future. The strategy is based on the collaboration of the city and regional councils, and the feedback of the community. The strategy anticipates approximately a 10 percent increase in population over 30 years, and a need for more than 6500 new homes by 2054. 540 of those homes are needed per year over the next three years. More information can be found at: Future Development Strategy

Joe Nidd AREINZ
Owner/Principal

Market Update
with Laura and Kerry

What we’ve seen going on in the Dunedin market recently.

Dunedin Property Report - January 2024

Dunedin Property Report - January 2024 (Dec stats)

The median price in November was $613,000 continuing the trend of modest price increases at the end of 2023.

The median number of days on the market increased just one day to 36 and anecdotally, buyer interest continued to increase leading into Christmas.

The number of sales reflects the strong increase in activity with a 25% increase when compared with December 2022, at 167 sales for the month.

After an extended period with the number of available listings building, we have seen a significant drop from 565 for sale in November to 491 as of writing this report. This is largely due to the high number of sales in December, alongside the low number of new listings leading into the holiday season.

The upper end of the market remains strong with 24 sales over $1 million and 59 sales over $750,000.

Interest rates remain a hot topic in the media and will remain a key driver of activity in the market in 2024. Top commentators are picking a drop in the Official Cash Rate in 2024 and expect banks to anticipate this and other factors with drops in borrowing rates, possibly as much as 1%, in the first half of the year.

Net migration remains staggeringly high at around 130,000 for 2023. When coupled with low building activity, the supply/demand equation strongly indicates increasing prices for 2024 until developers become more active again, in response to stabilising building prices and appealing land opportunities.

Joe Nidd AREINZ
Owner/Principal

Market Update with Laura and Kerry

What we’ve seen going on in the Dunedin market recently.

Dunedin Property Report - November 2023

Dunedin Property Report - November 2023 (Oct 2023 stats)

We have seen a substantial drop in the number of days to sell, with a median sale time in October of just 31 days. This is more than a 50% reduction from 63 days in March 2023.

The median price held steady at $595,000.

There were 162 sales in October, an increase of around 23% from September. We expect this activity to continue increasing for the following reasons:

The number of available listings continues to increase (534 up from 449), overcoming the difficulties many people were having finding a home before committing to selling.

The broadly held opinion that the market has turned a corner with modest growth being observed.

Investors are returning to the market with renewed confidence following the change of government.

Open home numbers continue to strengthen with well priced properties attracting strong interest and in many cases, multiple offers. There is a notable increase in the number of unconditional buyers returning to the market as competition increases.

The upper end of the market also continued to strengthen with 19 sales over $1m up from 11 last month and 49 sales at or above $750,000.

Section sales remained active, with five sold in October and buyer interest continuing to pick up as building companies compete to secure building contracts.

Joe Nidd AREINZ
Owner/Principal

Dunedin Property Report - October 2023

Dunedin Property Report - October 2023 (Sept 2023 stats)

There has been a marked increase in buyer commitment in September with the median days on market dropping from 44 down to 36. This is a substantial improvement from 63 days in March.

The experience at the frontline reinforces this, with agents reporting higher open home numbers and more cases of multiple offers at deadline. There are also more buyers with unconditional offers returning to the market, indicating that the increased competition is requiring buyers to strengthen their position in order to be successful.

There were 132 sales for the month, down slightly from 142 in September 2022. This is partly a side-effect of the very low stock numbers in the early part of the month. We expect a higher number of sales in October after a significant injection of new stock came to the market at the end of September, many of which will sell in October.

First home buyers remain the most active buyer sector but there has been a notable increase in activity further up the market, although these buyers are often not showing the same level of commitment as the entry level buyers. There were 11 sales over $1m, with close to 30% of sales at or above $750,000. This is up from around 20% in August, further reinforcing the increasing activity in the upper end of the market.

Section sales have begun to pick up with six in September and a noticeable increase in buyer enquiry.

All eyes are now on the election result with property at the front of the policy debate for many.

Joe Nidd AREINZ
Owner/Principal

Dunedin Property Report - September 2023

Dunedin Property Report - September 2023 (August 2023 stats)

The most notable result for August was the increase in sales, which rose by 33% from 121 in July to 161 in August. This reinforces anecdotes from agents of increasing buyer activity.

The bulk of this activity is in the mid-to-lower value range. To illustrate this point, around 80% of sales in August were below $750,000. This was reflected in the median price of $555,000 which is down on recent months but in keeping with the trend since January this year.

In contrast, there were only 11 sales over $1m for the month. Fewer buyers are choosing to extend borrowing and buy up the market while interest rates remain high.

The median number of days to sell increased to 44 which is also in keeping with recent trends.

The number of listings available on Realestate.co.nz continued to drop and is now edging towards 400, down around 20% from close to 500 just two months ago.

The lack of stock coming to market is providing good results for those selling first homes where vendors are benefiting from very few properties to compete with.

As the election nears, we are noticing an increasing influence on decisions being made by both buyers and sellers. Some see an opportunity to buy at what they perceive to be the bottom of the market, while others are waiting for the election outcome before making a decision. This is shaping up to be one of the most significant elections in terms of housing policy in recent memory.

Joe Nidd AREINZ
Owner/Principal

Dunedin Property Report - August 2023

Dunedin Property Report - August 2023 (July 2023 stats)

The median price increased to $625,000 in July, a significant increase from $585,000 in June but still in-line with the plateau in prices we have seen recently when taking into account monthly variability.

There were 117 sales in July which is low for this time of year but not surprising given the shortage of new listings coming to the market.

The most significant change has been the median days to sell which has dropped to 39 in July, ten days fewer than in June.

The number of listings available on Realestate.co.nz has dropped significantly again from 498 this time last month, to 459 as of writing this report.

This shortage of available listings is really starting to show in the market with open home numbers continuing their upward trend and buyers showing increased motivation to make decisions, especially on well priced properties in the lower to middle price bands.

We saw good activity continuing in the upper end of the market with more than 11% of sales over $1m in July.

Pressure remains on the local rental market with occupancy levels incredibly high, leaving very few properties available for rent. Anecdotally, investors looking to grow their portfolios are scarce due to the increased cost of rental ownership. When this is coupled with investors currently selling or intending to sell soon, the shortage of quality rental properties looks set to only get worse.

Joe Nidd AREINZ
Owner/Principal

Dunedin Property Report - December 2023

Dunedin Property Report - December 2023 (Nov stats)

The median price in November was $597,000. This is in line with the trend of a steady median around $600,000 as we head into 2024.

The median number of days on the market remains quite low at 35, although well priced properties are often selling within two to three weeks of coming to the market.

The number of sales was up almost 15% from last month with 188 sales recorded. This is also an increase from 170 in November 2023

The number of available listings has continued to climb, peaking at almost 600 during the past month. We are now seeing that number decline temporarily as listing activity slows for the break and buyer activity remains strong.

The upper end of the market continued to improve with 21 sales over $1m and 60 sales above $750,000.

Much is being made in the media of the changes expected in the first 100 days of the new government.

One clear area of interest heading into 2024, is the impact that changes to rental legislation will have. The supply of properties has remained very tight over recent years with few investors entering the market or growing their portfolio while net migration was close to 130,000 for the year to October. When coupled with low construction numbers, this has created a perfect storm for an already difficult rental market for both owners and tenants.

Thank you to all our clients for another great year. We look forward to assisting you with your property plans in 2024.

Joe Nidd AREINZ
Owner/Principal

Laura’s View
August 2023

What I’ve seen going on in the Dunedin market recently.

Dunedin Property Report - July 2023

Dunedin Property Report - July 2023 (June 2023 stats)

There was a modest increase in the median sale price in June, up to $585,000 from $565,000 in May. This reinforces the trend of a plateau in Dunedin prices since the beginning of the year.

There were 147 sales in June which is up from 126 in June 2022. This supports what we are seeing at the front line with buyers acting more decisively than this time last year.

The median days on the market held at 49, up two days from May and up just one day from 48 in June 2022

We are continuing to see a steady decline in available listings with the number of properties advertised on Realestate.co.nz, as of writing this, at 498. This is a drop of more than 10% from this time last month.

As a result buyers are often competing for well presented, well priced properties, with many properties now receiving multiple offers.

There were 6 section sales in June and anecdotally, there is confidence in the building sector that activity will increase as interest rates level off.

The upper end of the market is showing signs of recovery with more than 12% of sales in June over $1 million. This is up from just 7% of sales over $1 million in May.

Although these positive indicators hint at a recovery, it is likely that activity will remain tempered for the foreseeable future. Some vendors are seeing the current situation as an opportunity to sell before the likely injection of property coming to the market expected post-election.

Joe Nidd AREINZ
Owner/Principal

Laura’s View
July 2023

What I’ve seen going on in the Dunedin market recently.

Dunedin Property Report - June 2023

Dunedin Property Report - June 2023 (May 2023 stats)

The median sale price in May remained at a similar level to recent months at $565,000. There was a significant increase in the number of sales, up 45 from April to 172.

The median days on the market has stayed steady at 47.

The number of listings available on Realestate.co.nz is the most significant indicator this month. With 560 properties available, there are around 100 fewer than at this time two months ago. As a result, buyers are competing harder for the properties available, with a noticeable increase in open home attendance and most recent Nidd Realty sales resulting in multiple offer situations.

As we head into the thick of election campaigning, the major parties are focusing heavily on housing policy as a cornerstone of their campaign. There are clear lines being drawn between the directions taken, with National promising to roll back many of Labour’s recent policies (especially in relation to investment properties) and Labour continuing to focus on home ownership, minimising property speculation and strengthening the rights of tenants. As a result, anecdotally, many investment property owners are in a holding pattern before deciding to sell or hold properties, leaving those looking to purchase an investment property somewhat limited for choice.

The other significant influence on the market in recent weeks was another hike in the Official Cash Rate. This took many commentators by surprise and led to further increases in interest rates. The silver lining for borrowers, however, was the Reserve Bank signalling that it has likely reached the end of its tightening cycle, providing a little comfort to mortgage holders who have faced a run of interest rate hikes.

Joe Nidd AREINZ
Owner/Principal

Laura’s View
June 2023

What I’ve seen going on in the Dunedin market recently.