Selwyn Manning delivers his New Zealand Report Australian radio FiveAA’s breakfast team, Jane Reilly, Dave Penberthy and Mark Aiston. This week: Auckland House Median Prices Set To Reach Magic Million + All Blacks Try Out New Blood in South Africa – Recorded live on 24/07/15.
The Real Estate Institute of New Zealand has warned that house prices in Auckland are fast approaching a median sale price of $1million.
The Institute made the announcement within hours of reports that the median sale price of Sydney homes had broken the so-called Magic million.
And yesterday morning, the Reserve Bank of New Zealand cut the official cash rate by 2.5 base points, that’s five points down in the last two months, setting it at three percent. Banks and lenders followed suit dropping home mortgage floating interest rates to below five percent.
Lower interest rates are expected to give some relief to cash-strapped farmers, but the availability of cheaper finance is expected to apply a blowtorch to an already hot Auckland residential housing market.
Foreign investment in the market is also, in part, creating a house price bubble that the Reserve Bank has warned may burst. If it does, it will drag the wider domestic economy down with it.
Despite the warning, the National-led Government is focused almost entirely on increasing the supply of housing stock, to little effect. It has refused to curb or regulate the flow of foreign investment.
Even last week the Housing Minister and the Prime Minister said increasing supply will assist a correction, in time.
But according to real estate sales figures, Auckland houses are currently rising in value by $3000 per week, that’s $150,000 a year.
At this rate Auckland median house values will hit the magic million in about 18 months from now.
Clearly the current economic environment makes it near impossible for Kiwi first home buyers to buy in Auckland.
Preparations for this year’s Rugby World Cup are well underway, and yesterday the All Blacks announced some surprising selections to play against arch-rivals, South Africa’s Spring Boks, this Sunday.
Yesterday,mAll Blacks head coach Steve Hansen announced veteran number 10 Dan Carter will stay home, replaced by 24-year-old Lima Sopoaga, who will make his test debut against the Springboks at Ellis Park in Johannesburg.
Lock forward, James Broadhurst, will also make his test debut this weekend.
The head coach wants to see how the new players cope with pressure and added… The Johannesburg fortress is as good a place as any to do it.
Lima Sopoaga says he’s nervous. Mentor Dan Carter says, that’s good, it proves you are still alive!
All Blacks play South Africa at Ellis Park Jo-burg on Sunday, kick-off 12:30am SA Time.
The 2015 Rugby World Cup will be hosted by England from 18 September to 31 October 2015. Twickenham Stadium in London will host the final.