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Property Price Index | January 2024

Aotearoa property prices show slower decline in January

27 February 2024

The decline in New Zealand’s property prices has started to slow according to Trade Me's Property Price Index for January.

The national average asking price for a property in January was recorded at $858,200, down 2.3 per cent compared to the same time last year.

"While house prices have been consistently falling, the rate of decline is gradually easing, with smaller drops in recent months. Last year was tough for homeowners with prices falling and interest rates going up, but the slower drop now might mean things are getting more stable in 2024,” said Trade Me spokesperson Casey Wylde.

Similar to December, both Auckland and Wellington saw the biggest drops again of 5.7 per cent and 5.3 per cent followed by Manawatū/Wanganui down 3.9 per cent.

West Coast most affordable region

Despite a significant jump of over $45,000 compared to January 2023, the West Coast stands out as the most cost-friendly region for home-buyers, with the current average asking price sitting at $470,300.

"The West Coast continues to defy the norm, experiencing a 10.8 per cent increase in property prices compared to the same time last year. While most regions have seen prices drop, the West Coast has consistently seen prices rise over the past eight months," said Wylde.

"On the flip side, Auckland retains its title as the priciest region, with an average asking price of $1,053,400, reflecting a 5.7 per cent decrease from last year. Leading the charge as the most expensive spot is Waiheke Island, where sellers are seeking $1,750,000, nearly $500,000 more than the second priciest location, the North Shore, with an average asking price of $1,271,000. This is most likely due to the number of luxury and beach-front properties on Waiheke,'' added Wylde.

Following Auckland, the Bay of Plenty emerges as the second most expensive region, boasting an average asking price of $893,150. This is mainly driven by the Western Bay of Plenty, where prices have risen by 4.1 per cent, resulting in an average asking price of $1,058,450.

Urban properties drop in price

In major city centres nationwide, the asking prices for units, apartments, and townhouses have all seen a decline.

Units have decreased by 0.7 percent, now standing at $552,800. Townhouses show a 2 percent drop, reaching $793,100, while apartments are down to $706,400.

Auckland City also witnessed an overall decrease in prices for all urban properties, whilst Wellington experienced a significant 11.7 percent drop in unit prices.

"As prices for units, apartments, and townhouses take a slight dip, it's a golden opportunity for people looking to downsize or those looking to enter the property market for the first time. The prices for units in particular is a great option for first home buyers as they do sit just under the cap for the First Home Owners grant in each city. With more affordable options in the market, securing a place to call home becomes not just a dream but a tangible reality for Kiwi across the country."

Demand returns to property market in the new year

The demand for properties on the market surged significantly, experiencing a substantial 37 percent increase in January, rebounding from a notable dip in December.

“Wellington led the pack with the most pronounced surge in interest, up by an impressive 54 percent compared to December. Following closely were Hawkes Bay and Nelson, which saw 43 percent increase in views,” said Wylde

While nationwide supply saw an uptick of one percent compared to December, it still lags behind, down by two percent compared to the same period last year. Wellington listings have taken a dip of 15 percent, signalling an ongoing supply and demand challenge in the capital.