The Sale Price Index provides a monthly analysis of the national and local property market. The index tracks the asking price of properties listed in the past three months, based on size and type of property, to assist you on the next step towards buying or selling a home.
April 2017 Houses outside of Auckland break through $500,000 ceiling
A typical property outside Auckland now has an average asking price in excess of half a million dollars, according to the most recent Trade Me Property Price Index.
Head of Trade Me Property Nigel Jeffries said the average asking price outside Auckland has not escaped price inflation, with medium-sized properties (3-4 bedrooms) up 10 per cent on a year ago to $502,050. “Over the last year, we’ve seen $45,000 added to the average asking price of these properties outside the bloated City of Sails market. These typical 3-4 bedroom homes are the heart of the Kiwi property market, making up over 80 per cent of all new listings in the past year.”
The average asking price has lifted 42.9 per cent in the last five years. In the last three years, prices were up 25 per cent from $400,000 to $500,000 (equivalent to $90 per day).
“In the past year alone, the average asking price for a medium-sized home outside Auckland has risen by 10 per cent. That’s no small amount by anyone’s measure, particularly for Kiwis around the country still holding out hope of getting a foot on the property ladder.”
Across all houses, apartments, units and townhouses, the average asking price for outside Auckland rose 0.6 per cent month-on-month, and 9.6 per cent year-on-year to a new record high of $484,700.
Mr Jeffries said Northland, Bay of Plenty and Waikato have shown strong growth in average asking prices amidst a booming Auckland property market.
“The mighty Waikato is the fastest-rising region and shows little sign of easing. In the past year alone, the average asking price has risen by 20 per cent or $84,800, to a new record high of $519,650.”
Northland came in a close second, up 18.4 per cent in the past year to $512,950, but down on four months ago. “There’s a bit of light relief in Northland, as the average asking price peaked in December at $521,750,” Mr Jeffries said.
The Bay of Plenty also eased in April to $588,350, down from $590,650 in March. “I wouldn’t get too excited about a trend reversal here, as we’ve seen a 13 per cent rise in the average asking price over the past year - up more than $65,000,” Mr Jeffries said.
Around the regions
Canterbury was the only region to show a year-on-year decline in average asking price, with eight regions seeing double-digit growth over the past year.
“House prices in Canterbury continue to be rocked by the state of the Christchurch market, down 0.4 per cent and the only region in the country to show a negative result in April. It’s almost a regular fixture to see the region in such stark contrast to the rest of the nation,” Mr Jeffries said.
There was notable growth in the Nelson/Tasman region, up 18.3 per cent to $539,250. Marlborough was also up a significant 14.7 per cent to a new record high of $440,600.
“The average asking price in Wellington has not been immune to booming house prices, edging higher to a new record of $541,900, and up 13 per cent in the last year,” he said.
Affordable 1 & 2 bedroom houses appeal
Mr Jeffries said small houses with 1-2 bedrooms are prime real estate for investors and first home buyers. “We’ve seen a 10 per cent lift in the average asking price for a small house over the last year, and each month has seen a new record, most recently in April at $436,350. That figure is also up a cool $10,000 on the previous month as interest in downsizing picks up.”
That trend is seen across the country, with small houses up 11.9 per cent excluding Auckland, while in Wellington the average asking price shot up by 16.5 per cent year-on-year. “Small houses in the capital have seen just under $60,000 added to the average asking price over the last year, and in the past 18 months it has risen by over $100,000,” he said.
Table 1: Average asking price by property size & region, April 2017 vs April 2016
Auckland apartment market gathers more steam
Mr Jeffries said the average asking price for Auckland apartments has “skyrocketed”, up $26,300 in just one month.
“In February we saw average asking prices had doubled in just five years, and that rate of growth hasn’t slowed by any margin. Those keen on entering the Auckland apartment market can expect to pay $657,750, that’s $68,000 more than in January. It’s an expensive entry into the city property market, though still cheaper than medium or small houses in the area.”
Townhouses and units in Auckland also saw average asking prices lift, up 8.3 per cent and 7.8 per cent respectively.
Table 2: Average asking price by property type & region, April 2017 vs April 2016
About the Trade Me Property Price Index
The Index is a detailed analysis of expected sale price. Listings are from private advertisers and real estate agents.
The Index is produced from data on properties listed on Trade Me Property in the three months leading up to the last day of each period. Each period's value is a truncated mean of three months' worth of listings. This is to better reflect trends in property prices rather than month-to-month fluctuations in housing stock.
The Index uses an "80% truncated mean" of the expected sale price. This excludes the upper and lower 10% of listings by price, and averages the expected sale prices of the remaining properties.
It is the first report to provide an insight into 'for sale' price trends by type and size of property. Other reports tend to aggregate the property price data across these various properties.