The fact Auckland has replaced the Central Otago and Queenstown Lakes districts as the least affordable region to buy a house is "a positive", a Central Otago Lakes real estate spokesman said.
Massey University's latest home affordability report, released yesterday, found that in the last quarter, buying a home became more difficult for buyers in Auckland. However, in Central Otago Lakes, which previously held the top spot, affordability improved.
The university's home affordability index is calculated taking into account interest rates, wages and house prices. Nationally, affordability dipped 1.9% in the last quarter as the national median house price went up by 3%.
Real Estate Institute of New Zealand (REINZ) Queenstown spokesman Kelvin Collins said yesterday one of the differences between Auckland and Queenstown markets was the resort did not have many old areas and so had fewer entry-level properties.
Auckland was also experiencing a resurgence of buyer confidence, yet to be felt in Wakatipu.
"Every town's got the south side of the railway line-type property, but Queenstown doesn't have that because all our old houses are on good sections, so they have a high land value component.
"A first home buyer coming to this market is generally buying a brand new three-bedroomed, two-bathroom house with a double garage in Lake Hayes Estate. If you compare property with property, we're actually no more expensive than some other areas of New Zealand.
"If you look purely at median house prices, you can say yes, Queenstown's expensive, but if you start comparing apples with apples, we are actually more affordable than a lot of other areas."
Mr Collins said there had been good demand for property in the resort's Fernhill and Sunshine Bay suburbs over the past few months. Interest rates had helped first-time buyers get into the market.
Report compiler Prof Bob Hargreaves said given the financial turmoil in Europe it was "surprising that house prices are increasing in several regions, Auckland in particular".
"However, very low mortgage interest rates, combined with more relaxed lending criteria, are combining to bring more buyers into the market and new construction is still at a very low ebb."
Mr Collins said house prices could not diminish below cost in growth areas and Queenstown was a growth area. The median house price was $510,000 but a "good, solid 20-year-old property" could be bought for $350,000 to $400,000 in Wakatipu, he said.
In the past quarter, the report said, four of the dozen regions showed improvements in affordability: Otago/Lakes 9.9%, Waikato-Bay of Plenty 4%, Northland 2.4%, and Southland 0.9%.
Affordability deteriorated in Hawkes Bay by 11.4%, Auckland 5.8%, Manawatu-Wanganui 4.8%, Wellington 3.3%, Canterbury-Westland 2.6%, Nelson-Marlborough 2.4%, Otago 0.3% and Taranaki 0.1%.
