Auckland housing, and many other parts of the country to a lesser degree, is grossly overvalued, it’s as simple as that.
Read the full article at: www.nzherald.co.nz
An interesting analysis using a common stock valuing technique to look at the value of Auckland’s houses. For a local approach the yield in Nelson Tasman is around 4 % (after costs) and PE ratio of 21, and in Marlborough 20. This is why a professional investor would be looking outside of Auckland and thus local prices rising. Although the mid point of NZ shares is around 15 suggesting property price to rent is still expensive!