Is Auckland's property boom back?
Despite economic challenges, Auckland’s luxury property market thrived in 2024, with strong demand for homes priced above $2 million, according to Barfoot & Thompson, one of the city’s largest real estate agencies.
The firm, responsible for selling about a third of Auckland’s residential properties, reported that sales in the $2 million to $3 million bracket averaged 41 homes per month. Meanwhile, approximately 14 properties priced above $3 million were sold monthly, both figures surpassing 2023 levels.
Strong market performance
In an interview with Stuff.co.nz, managing director Peter Thompson noted that high-end property sales were resilient, even as broader economic conditions fluctuated.
“Given the challenges the economy was under in 2024, the Auckland housing market, assisted by falling mortgage interest rates towards year end, came through the year in good shape,” Thompson said.
Overall, the company’s sales numbers for 2024 rose by 17.2% year-on-year. The annual average price of $1,152,000 reflected a 4.4% increase compared to 2023. However, the yearly median price of $987,000 marked a slight 0.1% decline, showing minimal overall price movement in the market.
End-of-year trends
December capped the year with mixed signals. The median sales price for the month stood at $1 million, 3.4% higher than the three-month average but $11,000 lower than November’s median. The average price of $1,186,462 was up 4.7% from November and 6.4% from the preceding three months.
While sales volumes dropped to 833 from November’s 1,002, the rural and lifestyle markets surged. Barfoot & Thompson recorded nearly $80 million in rural and lifestyle property sales in December, the highest in over two years and nearly double the previous month.
Thompson attributed this increase to reduced mortgage rates and the longer timeframes required for securing rural and lifestyle property financing compared to urban markets.
Low supply, steady demand
Barfoot & Thompson added 780 new residential listings in December, fewer than the 833 properties sold. This marked the first time in 2024 that new listings fell short of sales. At year’s end, the agency had 5,094 properties available, the lowest inventory level in 11 months.
Despite the decreased supply, properties in the sub-$750,000 range made up 19% of December’s total sales, consistent with full-year figures for this price category.
Although December’s prices remained below the peaks of the post-Covid property boom in 2021, Thompson said the market had stabilised after struggles earlier in the year due to economic pressures.
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