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Property Price Index - March 2022

Property supply reaches new record while demand jumps

26 April 2022

The number of properties for sale reached a record high in several regions in March, while reports of a potential market price correction saw an increase in demand, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd said all 15 regions saw supply increase last month when compared with March 2021, and the month prior. “Nationwide, we saw a 13 per cent jump in the number of properties for sale when compared with February.”

Mr Lloyd said last month’s largest supply spikes were all in the lower North Island. “In March we saw the largest number of properties for sale on record in the Wellington, Hawke’s Bay, and Manawatu/Whanganui regions. Otago also saw an all-time high number of listings.”

Supply changes March 2022 vs March 2021 & February 2022 (*-record high number of listings)
RegionSupply % change - March 2022 vs March 2021Supply % change - March 2022 vs February 2022
Bay of PlentyBay of Plenty+51%+51%+12%+12%
Hawke's BayHawke's Bay+75%*+75%*+21%+21%

“The number of properties listed for sale nationwide last month was the most we have seen since May 2019, before the market felt the impact of the pandemic.”

Demand spikes across the board in March

Mr Lloyd said while nationwide demand for properties for sale dropped by 1 per cent year-on-year in March, monthly comparison showed a spike in the number of Kiwis looking at property listings onsite.

“In March we saw a sharp increase in the number of Kiwis looking at properties in every region across the country, with a 14 per cent total increase in views when compared with February. We reckon this is likely a reaction to Kiwis hearing reports that the market might be slowing down and that it could be a good time to get a foot on the property ladder.”

Mr Lloyd said the largest increases in demand when compared with the month prior were seen in the Nelson/Tasman (20%), Auckland (19%) and Taranaki (17%) regions.

National average asking price reaches a new high

Despite the increase in supply, Mr Lloyd said the national average asking price reached a new record of $971,450 in March, up 21 per cent year-on-year and seeing no change when compared with February. “This marked the sixth consecutive month where we saw a year-on-year increase of over 20 per cent.

“Every region except the Bay of Plenty, Hawke’s Bay, Marlborough and Otago saw a record high average asking price in March, with the largest annual increases seen in Canterbury (up 32%) and Taranaki (up 31%).”

Mr Lloyd said Southland had a standout month, entering the $500,000 bracket for the first time with an average asking price of $500,900 in March.

“What this is telling us is sellers’ expectations have not shifted and most are still holding on to hope that their property will fetch top dollar. ”

Wellington prices see a record-breaking month

The Wellington region’s all-time high average asking price of $993,150 last month marked an increase of 20 per cent year-on-year and 1 per cent month-on-month, creeping closer towards the $1 million mark.

Looking at Wellington City, Mr Lloyd said the district’s average asking price also reached a new high, at $1,088,800 last month. “This made it the most expensive district in the region, followed by Porirua ($1,055,600) and South Wairarapa ($1,018,700).”

Most expensive districts in the Wellington region - March 2022 (* = new record)
DistrictAverage asking price - March 2022
Wellington CityWellington City$1,088,800*$1,088,800*
South WairarapaSouth Wairarapa$1,018,700$1,018,700

While supply skyrocketed in Wellington last month, demand in the region grew by a comparatively small 2 per cent year-on-year in March.

The capital’s most popular property in March was a three-bedroom house on Hornsey Road, Melrose. “It had an asking price of $1,400,000 and was watchlisted 318 times in its first two days onsite.”

Auckland prices increase by 21 per cent year-on-year

The average asking price in the Auckland region reached an all-time high $1,258,400 in March, climbing 20 per cent year-on-year and 1 per cent month-on-month.

“Looking at Auckland City, the average asking price was $1,375,700 last month, making it the fourth most expensive district in the region.” The most expensive districts in Auckland in March were Waiheke Island ($1,781,200), North Shore City ($1,453,900), and Rodney ($1,375,800).

Most expensive districts in the Auckland region - March 2022
DistrictAverage asking price - March 2022
Waiheke IslandWaiheke Island$1,781,200$1,781,200
North Shore CityNorth Shore City$1,453,900$1,453,900

Supply in the Auckland region was up 19 per cent year-on-year in March, while demand dropped 4 per cent.

Last month’s most popular Auckland property was a four-bedroom, two-bathroom house on Fairmount Road in Titirangi with an asking price of $1,280,000. “It was watchlisted 269 times in its first two days onsite.”

Record average asking prices for all house sizes

Mr Lloyd said nationwide, a new record was seen for medium-sized (3-4 bedroom) properties, with the average asking price increasing by 22 per cent year-on-year to reach $992,050 last month. “The average asking price for small properties (1-2 bedrooms) also reached an all-time high of $717,350 in March, increasing by 18 per cent year-on-year.”

Mr Lloyd said the national average asking price for apartments and units reached a record high last month, at $784,800 and $655,500 respectively. “The average asking price for townhouses in March was $885,150 nationwide.”