The expected price for smaller Auckland homes is continuing to increase, with Trade Me reporting a 26.5 per cent jump for properties of one and two bedrooms over the last year.
This compares with an overall increase of 13.7 per cent (to $757,950) for all property types in Auckland city over the 12-month period.
The average expected sale price of small houses, apartments, units and townhouses in the city was $449,850 in January – up 26.5 per cent on last year – according to the internet auction website’s property price index.
The index measures trends in the expectation of selling price across all Trade Me property listings.
The increase in the expected sale price of small houses alone in Auckland City jumped 15.4 per cent to $670,700 in January, and was up 18.6 per cent over the region as a whole, to $552,450.
Trade Me head of property Nigel Jeffries said the increase reflected a continuing demand from investors and first-home buyers taking advantage of the competitive marketplace for mortgages.
And I can concur that this is certainly taking place within the market, having sold over 20 one and two bedrooms unit last year with substantial increases. An example of this is a two bedroom property at 6/7 Don Croot St, Kingsland. I sold this property in April 2014 for $447,000 and it very recently re-sold for $597,000 after improvements to the kitchen.