Why don’t we track ‘price per SQM’ in New Zealand?
I recently met a guy from the States who asked: “Why don’t you track ‘price per sqm’ for properties in NZ?”
In the US, this is a common metric used when considering any real estate purchase but no one here seems to measure or consider it.
Partly that could be because the variance in size/style/condition/age you see throughout every suburb of NZ means the numbers could vary wildly from property to property, even in the same street.
It got me thinking though, could tracking ‘price per sqm’ be useful for our clients? The more info you have at your disposal, the better right? Could it show trends in the market even if the individual property outcomes differ dramatically?
This graph shows the median price per sqm for Wellington over the past 12 months. In May, the figure came in at $5,738 per SQM, the first time it has dipped under $6k since June last year.
Interestingly, the numbers don’t vary that much, the highest month being Sep 2018 ($6,625 per SQM) vs May 2019 ($5,738 per SQM):
To give you an idea of the individual variance between properties: In the month of May, the highest price paid per SQM was $16,486 for a 2 bedroom home in Mount Victoria. Meanwhile, the cheapest price paid per SQM was $2,294 for a 5 bedroom home in Tawa.
Let us know if you find this information useful and we can look to dive deeper into these numbers in future.