Million-dollar state houses provoke Auckland v London housing comparisons
Auckland house prices are being touted in the international press as having overtaken London's with a million-dollar North Shore state house being held up as the poster-child for the housing madness.
In a widely shared article, Bloomberg Business pointed to the $1.04 million reached at auction for a two bedroom ex-State House in Auckland's Devonport as an example of the city's property prices, which Bloomberg says are now higher than London's.
Australian press in particular have homed in on the news with headlines reading "The New Zealand city where houses are more expensive than London", and "Aussie house prices have nothing on Auckland".
Images from Barfoot and Thompson's listing of the Kerr Street property showed a kitchen appearing to lack a sink, backyard views of a brick wall, and a dilapidated-looking bathroom.
The selling price of the 1930s home was almost double its council valuation of $520,000.
In London, the same money could buy you a two bedroom flat in the inner city, and leave you with extra to buy a couch or two.
A two bedroom flat on Bunning Way in Islington comes in at £449,950, or $1.03 million.
Located near two major transport networks, the modern counterpart is a comfortable and modern home.
Ironically, Auckland's Kerr Street home was a former state house, purpose-built for low income tenants.
A housing shortage and skyrocketing prices are driving changes to Auckland's housing landscape.
New developments are pushing Auckland's boundaries out further, with one ongoing development in Hobsonville boasting 900 new homes already finished, or under construction.
The 167-hectare Hobsonville community will eventually hold 3000 houses.
Other initiatives include 20 floating homes, which are planned to arrive in Gulf Harbour, on Auckland's Waitemata Harbour in 2016.
According to data obtained by Bloomberg News via an Official Information Act request, the Kerr Street home is one of 650 state homes worth over $1 million in its Auckland property portfolio.
BloombergBusiness reported average house prices in Auckland have jumped 70 per cent (to $1,079,473) in the past four years.
BloombergBusiness said prices in London advanced by 50 percent over the same period, averaging a measly NZD $1.019 million.
Tracking surging housing markets can be fraught however - figures released at the end of October show London's average house price has actually grown to NZD $1.149 million, slightly more than the Auckland average.
BloombergBusiness also noted the irony of the City of Sails' routine ranking among the world's 10 most livable cities.
Housing New Zealand owns or manages around 65,000 houses around New Zealand, less than 5 per cent of the country's residential properties.
Since 2010, 21 state houses in Auckland have sold for more than $1 million.
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