70pc rise in $1m plus home sales

The number of homes sold for $1 million or more last year rose sharply, thanks to unprecedented price rises, the Real Estate Institute says.

Last year, 30,873 residential properties nationwide sold for at least $1m, up 69.1 per cent from the 18,260 $1m-plus sales in 2020, according to the institute’s Million Dollar Price report.

Those sales comprised 35.2 per cent of the total sales figure last year, up from 21.4 per cent in 2020.

Real Estate Institute acting chief executive Rowan Dixon said the figures were not just about there being more expensive properties on the market.

There were record price increases across the country last year, and the market value of properties generally were up, with the national median price reaching $905,000 in December, he said.

‘‘With annual percentage increases in prices sitting in double figures throughout the year, a 69.1 per cent annual uplift in the number of $1m-plus properties sold is not unexpected.’’

In Auckland, there were 19,877 $1m-plus sales, which was up 50.7 per cent on 13,188 in 2020. These sales were 62.1 per cent of the total.

Auckland’s median price was $1.29m in December. But percentage increase in the region had slowed, probably due to rising mortgage rates and a tighter lending environment, Dixon said.

The 116.8 per cent rise in $1m-plus sales throughout the country excluding Auckland was more significant, and showed a marked increase across the regions, he said.

All 15 regions had annual increases in the number of $1m-plus sales last year, and every region had a record number of sales in the price bracket.

Manawatū /Whanganui had the biggest annual percentage increase in sales of over $1m, with a 307.7 per cent increase on last year.

Four other regions had rises of more than 150 per cent. They were Southland, Taranaki, Gisborne and Waikato which were up 187.5 per cent, 182.7 per cent, 176.9 per cent and 163.2 per cent respectively.

Dixon said the regional rise was due to a strong market underpinned by continued demand exceeding supply in many parts of the country, as well as a shift in buyer sentiment.

There was also an 81.6 per cent annual increase in $3m-plus sales and a 94.6 per cent increase in $5m-plus sales nationwide.

Canterbury had the biggest increases in both these categories at 191.7 per cent and 400 per cent, while Auckland had an increase of 93.8 per cent in $5m-plus sales.

Dixon said the institute’s December figures showed signs of slowing in price increases. ‘‘But, given the strength of the market, we will have to see how gathering headwinds play out in the coming months.’’