Auckland is now the fifth most expensive city in the world. When I heard that statement I did not know what to make of it. Was it April’s fools? Did someone misread the print? Were they intentionally trying to manufacture “news” to sell air time? The report they referred to by the small consulting company Demographia did actually place us tied for 4th position as the least affordable city in the world. How could this be when I prepared a slideshow for a recent presentation where I saw Auckland rated 129th in the world? See my source here http://www.numbeo.com/property-investment/rankings.jsp
Well, obviously someone is doing something wrong… When you express affordability as a measurement between income and house prices I find it hard to believe that we even remotely compete with most Asian cities and most European and American powerhouses. Auckland is marked by numbeo and demographia at an affordability ratio of 9.7-9.85 which is slightly higher than I would like to see but reasonable due to recent immigration pressure and lack of supply. What doesn’t seem to make sense are the numbers demographia collected for other cities in the world.
We are not the cheapest, that is for sure, but we are definitely not in the top 50, probably not in the top 100 whichever way you measure it. Bad news sell, and people make decisions based on those news. I can tell you from practical experience that the market in Auckland has already picked up speed again and in 3 weeks you will hear about it in the news. I have just sold 4 of the 5 properties I had for sale in the last 2 and a half weeks! Information is power and learning from people who are out there doing it is essential.