Auckland residential market
The residential housing market in Auckland is competitive. Prices have been on the rise; the Auckland region experienced an annual increase in the average residential house price compared to the same month in the previous year. The price of residential property in Auckland was the highest in North Shore City and Rodney District in that same month, with an average sale price of 1.35 million New Zealand dollars.
Due to the rising cost of real estate, an increasing number of New Zealanders who want to own their own property are taking on mortgages. Most residential mortgage lending in New Zealand went to owner-occupier borrowers, followed by first home buyers. In addition to mortgage lending, under the KiwiSaver HomeStart initiative, first-home buyers in New Zealand can apply to withdraw all or part of their KiwiSaver retirement savings to assist with purchasing a first home. However, even with a large initial deposit, it may take decades for many borrowers to pay off their mortgage.