Best of the Best 2018 New Zealand, December 2018 The Best of the Best The Best of the Best report covers suburb-level measures used by CoreLogic to determine property market performance across the year, ranging from property value growth to rental yields. In addition to the material provided here, detailed suburb-level data can also be accessed via. an interactactive geographic tool called ‘Mapping the Market’. National Top Performing Suburbs 2018 ALL RESIDENTIAL PROPERTY Highest Median Value Herne Bay, Auckland $2,672,600 Lowest Median Value Cobden, Grey $149,500 Greatest 12 month Bulls, Rangitikei 26.9% Change in Median Values Lowest 12 month Normanby, South Taranaki -7.6% Change in Median Values Greatest 5 year Change Kawerau, Kawerau 138.5% in Median Values Lowest 5 year Change Westport, Buller -18.1% in Median Values Top Sale Price 15 Cremorne St, Auckland $27.5 million Highest Gross Mataura, Gore 11.1% Rental Yields Lowest Gross Herne Bay, Auckland 1.3% Rental Yields Highest Median Rent Mount Cook, Wellington 36.0% 12 month Change Lowest Median Rent Aokautere, Palmerston North -32.9% 12 month Change Shortest Days on Market Grasmere, Invercargill & 7 days Westbrook, Palmerston North Longest Days on Market Woodend Beach, Waimakariri 169 days 2 | CoreLogic Best of the Best 2018 © Copyright 2018 | RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) subsisting in this publication including any data, analytics, statistics and other information. All rights reserved. It’s been another fascinating year for NZ’s property market Moving forward to April, the intention is to ring-fence in 2018. With volumes low (but stable) and values showing rental property losses for tax relief purposes. Landlords reasonably consistent growth across most parts of the can still use losses to reduce tax across their current country (expect for Auckland and Christchurch), most property portfolio or on future profits on the same interest has centred on government policy and measures property, just not against their employment income to stifle property speculation. Many of these new rules will anymore. It’ll be really interesting to see if this triggers become even more relevant in 2019 and will be key factors some landlords to leave the sector, although on its own we’ll watch closely. the ring-fencing seems unlikely to cause a mass exodus. Then there’s KiwiBuild. It’s fair to say that the programme The first milestone for 2019, however, will be the relaxation has had its fair share of teething problems to date, but of the LVR restrictions on 1st January. We’re cautious they’ll be hoping to really ramp up momentum in 2019, about the effects these changes might have on market both in terms of construction volumes and buyer take-up activity, because banks are likely to stick to tough lending of the houses actually built. With more than 4,000 homes criteria and the pool of potential borrowers who can meet contracted with developers, the first KiwiBuild target of those requirements may not be all that big. 1,000 completions by June next year looks achievable. Thereafter, government policy will come into focus. How all of that interacts with macro factors such as GDP The foreign buyer ban has already been in place for a growth (slowing), net migration (easing) and mortgage couple of months and on 8th February we’ll get Statistics interest rates (potentially rising a bit) will go a long way NZ’s data on their Q4 activity in the final three months to determining the path for property volumes and values of 2018. If the ban has been effective (and effectively in 2019. We expect more of the same next year – low and policed), purchasing by foreign buyers should have stable volumes, with generally rising values – but whatever fallen away towards zero. happens, it’ll be interesting yet again. Also in February the Tax Working Group will be submitting its final report to the government, with a recommendation of whether or not to impose a capital gains tax, and in what form (if the recommendation is indeed for a tax, which seems likely). However, it’s important to note that the government would then have to accept that recommendation and also survive the next election (2020) before any tax would come into law. The Best of the Best 2018 highlights The Best of the Best 2018 highlights the top 10 suburbs nationally and across each main centre based on the below criteria: ► All data highlighted is current ► Gross rental yields are calculated using MBIE to November 2018. data on rental bonds lodged. Median weekly ► Median value data based on the middle rents are multiplied by 52 to get an annual value of all automated valuations across the figure, which is then divided by that suburb’s suburb. Suburbs shown here are only those median property value. where the model had enough comparable ► Days on market is how long it takes for a evidence to provide a meaningful estimate property to sell from first listing to sale date. of current value. Suburbs covered for this measure must have ► 12 month change The percentage difference at least 200 dwellings and have had 20 sales between the median AVM value in the same in the past year. period compared 12 months ago. ► Five year change The percentage difference between the median AVM value in the same period compared 5 years ago. CoreLogic Best of the Best 2018 | 3 © Copyright 2018 | RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) subsisting in this publication including any data, analytics, statistics and other information. All rights reserved. National Top 10 ALL RESIDENTIAL PROPERTY Highest Median Value Lowest Median Value # Suburb Council Area Median value # Suburb Council Area Median value 1. Herne Bay Auckland $2,672,600 1. Cobden Grey $149,500 2. Saint Marys Bay Auckland $2,279,150 2. Manaia South Taranaki $156,650 3. Remuera Auckland $2,066,650 3. Taumarunui Ruapehu $162,950 4. Stanley Point Auckland $2,006,600 4. Reefton Buller $163,150 5. Campbells Bay Auckland $1,949,000 5. Appleby Invercargill $173,850 6. Orakei Auckland $1,897,900 6. Otautau Southland $181,150 7. Epsom Auckland $1,871,600 7. Kaikohe Far North $185,000 8. Westmere Auckland $1,847,350 8. Clifton Invercargill $185,900 9. Mission Bay Auckland $1,832,150 9. Normanby South Taranaki $187,900 10. St Heliers Auckland $1,774,400 10. East Gore Gore $193,200 Greatest 12 month Change Lowest 12 month Change # Suburb Council Area Change # Suburb Council Area Change 1. Bulls Rangitikei 26.9% 1. Normanby South Taranaki -7.6% 2. Gonville Whanganui 22.3% 2. West Melton Selwyn -4.3% 3. Maraenui Napier 21.6% 3. Aranui Christchurch -4.2% 4. Aramoho Whanganui 20.8% 4. Farm Cove Auckland -4.2% 5. Otematata Waitaki 20.1% 5. Sunnynook Auckland -3.9% 6. Dannevirke Tararua 19.7% 6. Onetangi Auckland -3.7% 7. Whangarei Heads Whangarei 19.5% 7. Beachlands Auckland -3.6% 8. Featherston South Wairarapa 19.3% 8. Windsor Park Auckland -3.5% 9. Castlecliff Whanganui 19.0% 9. Karaka Auckland -3.2% 10. Marton Rangitikei 18.9% 10. Kaikohe Far North -3.1% Greatest 5 year Change Lowest 5 year Change # Suburb Council Area Change # Suburb Council Area Change 1. Kawerau Kawerau 138.5% 1. Westport Buller -18.1% 2. Queenstown Queenstown Lakes 108.6% 2. Reefton Buller -16.7% 3. Meremere Waikato 104.1% 3. Cobden Grey -10.1% 4. Selwyn Heights Rotorua 96.4% 4. Karoro Grey -4.4% 5. Fernhill Queenstown Lakes 95.7% 5. Greymouth Grey -3.4% 6. Featherston South Wairarapa 91.0% 6. Duvauchelle Christchurch 0.3% 7. Putaruru South Waikato 89.0% 7. Paroa Grey 0.3% 8. Sunshine Bay Queenstown Lakes 88.5% 8. Pegasus Waimakariri 0.9% 9. Frankton Queenstown Lakes 88.1% 9. Akaroa Christchurch 2.2% 10. Hikurangi Whangarei 87.3% 10. Clifton Christchurch 2.4% Highest Median Rents Lowest Median Rents # Suburb Council Area Median Rent # Suburb Council Area Median Rent 1. Arthurs Point Queenstown Lakes $745 1. Reefton Buller $220 2. Freemans Bay Auckland $732 2. Westport Buller $220 3. Ponsonby Auckland $732 3. Manunui Ruapehu $220 4. St Heliers Auckland $695 4. National Park Ruapehu $220 5. Glendowie Auckland $695 5. Ohakune Ruapehu $220 6. Arrowtown Queenstown Lakes $695 6. Raetihi Ruapehu $220 7. Fernhill Queenstown Lakes $695 7. Taumarunui Ruapehu $220 8. Frankton Queenstown Lakes $695 8. Avena Invercargill $230 9. Jacks Point Queenstown Lakes $695 9. Georgetown Invercargill $230 10. Kelvin Heights Queenstown Lakes $695 10. Gladstone Invercargill $230 Highest Gross Rental Yields Lowest Gross Rental Yields # Suburb Council Area Change # Suburb Council Area Change 1. Mataura Gore 26.9% 1. Aokautere Auckland 1.3% 2. Runanga Grey 22.3% 2. Ashhurst Auckland 1.4% 3. Wairoa Wairoa 21.6% 3. Fitzherbert Auckland 1.5% 4. Fordlands Rotorua 20.8% 4. Kingston Auckland 1.5% 5. Patea South Taranaki 20.1% 5. Mornington Auckland 1.6% 6. Cobden Grey 19.7% 6. Owhiro Bay Auckland 1.6% 7. Appleby Invercargill 19.5% 7. Wellington Central Auckland 1.7% 8. Blaketown Grey 19.3% 8. Aro Valley Auckland 1.7% 9. Clifton Invercargill 19.0% 9. Kelburn Auckland 1.7% 10. Kaikohe Far North 18.9% 10. Stonefields Auckland 1.8% 4 | CoreLogic Best of the Best 2018 © Copyright 2018 | RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) subsisting in this publication including any data, analytics, statistics and other information.