New Zealand is in the midst of a boom in property prices, and its capital Auckland is now the most expensive city in the Western Hemisphere, according to a survey released Tuesday by Bloomberg Intelligence.
In the past five years, the city’s median home price has jumped $2,900, to $1.9 million, according a survey by the real estate research firm CoreLogic.
New Zealand saw a $1,200 rise in median home prices in the five years ending in 2018, compared to the five-year average, CoreLogics said.
While Auckland is the priciest city in New Zealand, the survey also found that the median price of a home in Auckland was up nearly $600 in the same time period.
The median home in the Auckland area rose by $1 million to $737,400, according the survey.
The survey is based on data from April to September 2018.
CoreLogis data shows Auckland is on pace to see a median home value increase of $7,800 over the next five years.
The report notes that Auckland’s housing market is also benefiting from an influx of foreign buyers.
The Auckland market saw the highest number of foreign buyer purchases in five years in 2018.
The city saw an increase of 4.6 per cent in home purchases in the year ending in September, Corelogic said.
The increase was due to a surge in foreign buyers, which increased by nearly 2.2 per cent, to 5,919, the company said.
In 2018, Auckland’s population was more than 1.3 million people.
Corelogics estimates that Auckland will continue to grow as a place to live for at least the next decade.
The property market in Auckland has been on a downward trend over the past few years, according an analysis by CoreLogica.
In 2019, Auckland was ranked 27th out of 33 cities in the global city market.
However, Core Logics said Auckland’s share of the global market is expected to grow in the next few years as more foreign buyers flock to the city.
The number of international buyers increased by 5.2 percent in 2019 to reach 3,087 buyers, Core Stats said.
This was driven by a surge of more than 60,000 buyers from China, followed by Brazil, Mexico, the United Kingdom, South Korea and the United States.
Core Stats says Auckland’s growth will likely continue into the next 20 years, with the median house price expected to increase by 5 percent annually.
Core Logica says that Auckland has seen a dramatic increase in foreign buying, and it is expected that Auckland could overtake the United Arab Emirates as the city with the highest proportion of foreign nationals in the region.