The disastrous outcome of The Block auction was a symptom of Auckland’s slowdown – and the Auckland suburb of Kingsland’s market decline, says CoreLogic Head of Country Ben Speedy.
In Sunday's The Block auction, three of the four couples failed to make any money from the 12-week renovation challenge.
Winners Lisa Ridout-Gordon and Christopher Gordon were the only team to win any money on auction night, taking home $150,000. Their apartment sold for $1.34 million, $50,000 above its reserve.
Speedy said part of the reason was the Auckland housing market remains quiet, with buyers and sellers under no urgency to agree a sale price.
CoreLogic took a look into the figures in Kingsland, where ‘The Firehouse’ is located, and found that the contestants were doomed by the state of the market in the suburb.
“Taking a deeper look into the suburb of Kingsland, it’s experienced a market decline of 3.5 per cent over the past 12 months,” says Speedy.
It’s performing worse than the total Auckland market, which declined 2.3 per cent.
“Interestingly, only 4.2 per cent of properties within Kingsland sold in the past 12 months, versus Auckland at 4.3 per cent, and New Zealand at 6.5 per cent.”
The recently released CoreLogic QV House Price Index showed regional New Zealand is still experiencing double-digit growth for the year. National property prices rose a further 0.2 per cent, lifting the national index to 2.3 per cent.
Published 12 September 2019
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