History shows just how desirable Ponsonby residential properties have become over the years. Back in the early 2000’s Ponsonby’s median value was around 35% higher than the wider Auckland regional median. Today it is more than 90% higher and growing. While prices in the broader Auckland region have flat-lined recently, Ponsonby’s continues to grind higher reflecting, in part, the aspirational nature of the area.
Transactional activity for residential property in Ponsonby and surrounds has bounced back over the June 2018 quarter, up 29% since the prior March 2018 quarter outperforming the Auckland region which experienced a 11% increase over the same period.
When quarterly fluctuations are smoothed using 12 month moving averages, a continuing upwards trend, albeit at a slower pace, is evident. Over the June 2018 quarter the median value decreased by 7% when compared to the prior March 2018 quarter. Encouragingly provisional statistics for the September 2018 quarter show the median value increasing to $1,605,000, up 12%.
Net Migration into Auckland peaked in August 2017 and has since experienced a month-on-month decrease in the total net gain of migrants, however the net inflow of 32,575 in July 2018 remains three times above the historic average of 12,279. It can be expected that such numbers will remain above long term averages due to chronic labour shortages in critical industries such as construction. This continued high migration, a lack of housing supply and historically low interest rates, look set to remain in place for some time, and will continue to provide strong support to residential values.
Freemans Bay witnessed the largest value increase in the two years to June 2018, up 33% since the year to June 2016. St Marys Bay is the only suburb to experience a significant decrease in value over the year to June 2018, down 29% since the year to June 2017. This is largely due to growth in the number of apartment, unit and townhouse sales compared to freestanding homes with higher density housing sales representing just 26% of total sales in the year to June 2017 compared with 59% over the same period in 2018.
The spread of values and transactional activity varies between Ponsonby and surrounding suburbs. Herne Bay, unsurprisingly, holds the highest median value over the 12 months to June 2018 of $2,277,500 followed by Westmere with a median value of $1,850,000. Grey Lynn is the most active suburb in the market with a total of 211 properties transacted, acting as a more affordable entry point into the market.
Over the year to June 2018 the total number of units transacted in the Ponsonby and Surrounds residential market showed the largest growth, almost doubling since the year to June 2017. Transaction numbers for Apartments, decreased over the year to June 2018, down 23%.
Ponsonby and Surrounds Hot Spot Map (6 Months to June 2018)