At one point, first home buyers "would have bought a cardboard box if it was on a decent bit of land". Now, things have changed, one economist says.
Data from CoreLogic, released on Thursday, showed a slowdown in Auckland house prices for a second month.
Commentators, including industry sources, said it could be partly due to an influx of townhouses that had come on to the market. While they had increased the options for buyers, there were concerns that some had been built in areas that were too remote for first-home buyers.
Some of the cheapest property listings on Trade Me are for townhouses in Ōtara and Glen Eden.
A townhouse for $249,000 is listed in Parnell, but that is a leasehold property with ground rent up for review in 2025.
Another, in Mt Albert, requires remediation work.
The south and west Auckland properties were listed in the mid-$500,000s. The last time the city's median price was near that level was more than a decade ago.
The houses would require monthly home loan payments of between $2,995 and $3,232 with a 20 percent deposit and a 7.8 percent interest rate.
Trade Me data shows the wider city's median rent is $680 a week.
A brand new Ōtara townhouse for sale for $518,000. Photo: Supplied
"For people wanting to buy a house, I don't know if people are nearly as precious as they might have been on where they buy," Infometrics chief executive Brad Olsen said.
He said even with the market soft, the prices being asked in many parts of Auckland were "still pretty big numbers for a lot of households".
He said townhouses could be less maintenance than other properties, which was more attractive to a growing number of people.
More than 12,000 townhouses had been consented in a year at the peak and most of those would have already found buyers, he said.
A big problem for buyers was being able to get lending, he said. "If you can't get lending you're not a buyer. There's that which is a challenge."
Townhouses could also come with different insurance needs and body corporate fees.
"Those other costs do add up, including insurance costs, which are pretty killer at the moment.
"In a townhouse you insure your house and whatever your neighbour does too because if their house burns down yours is going with it. Those factors might be influencing behaviour as well."
The seller wants $559,000 for this townhouse on Glengarry Road, Glen Eden. Photo: Supplied
Over time, an oversupply in a relative sense would improve affordability, Olsen said.
"Unless you're someone who's built a stackload of houses and wants to keep them so you can count them every morning, you want to get some pay off so you'll eventually drop the price to generate a sale."
He said the market had been through a lot of changes: "At one point you would have bought a cardboard box if it was on a decent bit of land and paid a couple of million for it.
"Now it's competitive for even getting a sale. Interest rates are a big part of that."
Five of Trade Me's cheapest townhouses (with asking prices listed)
19 Dovedale Place, Parnell
The asking price is $249,000 but the property is leasehold, with ground fee refixing August 2025.
Number 20 sold in March for $140,000.
With a 20 percent deposit, this would be $1,440 a month on a current one-year fixed rate.
61/8 Soljak Place, Mt Albert
This townhouse is being sold for $465,000, but the complex is facing remedial work.
A neighbour sold in October for $417,250.
With a 20 percent deposit, mortgage repayments would be $2,689 a month.
1A Clayton Ave, Ōtara
This townhouse is up for sale for $518,000.
A standalone house nearby sold for $660,000 in March.
With a 20 percent deposit, mortgage repayments would be $2,995 a month.
13b Everitt Road, Ōtara
The asking price is $539,000.
A standalone across the road sold for $637,000 in November.
With a 20 percent deposit, buyers could expect to pay $3,117 a month.
4/94 Glengarry Road, Glen Eden
This West Auckland home is being sold for $559,000.
Neighbouring standalone houses are valued at anything from $720,000 to $1m.
With a 20 percent deposit, you would pay $3,232 monthly.
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