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Property Price Index - May 2022

Supply skyrockets while prices see a record-breaking drop

21 June 2022

The national average asking price for a property saw the largest month-on-month drop on record in May, while the number of properties for sale reached an all-time high, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd said in May the average asking price for a property in New Zealand was $949,700. “When compared with the month prior this marks a drop of 2 per cent, the largest month-on-month drop we have ever seen.”

Mr Lloyd said Trade Me’s May data shows the tide is turning after relentless price growth over the past couple of years. “Often prices cool a little as we go into the colder months, but last month’s data is beyond anything we’ve seen in previous years. The whole market is in flux and we’re seeing this reflected in every corner of the country.”

May’s largest price drop was seen in the West Coast region, where the average asking price fell 4 per cent in four weeks to $410,300. “The Southland, Wellington, Auckland, and Northland regions saw the next biggest price drops, with their average asking prices all down 2 per cent month-on-month in May.”

Mr Lloyd said Christchurch saw prices dip for the first time this year. The average asking price in the Garden City was down 0.3 per cent on April to $713,000, breaking its twelve month streak of records.

When compared with May 2021, Mr Lloyd said last month’s average asking price marked a 16 per cent increase. “While this is still a significant jump, the last time we saw a year-on-year percentage increase under 17 per cent was in April 2021, so last month’s price increase does mark a notable slow down.”

Supply reaches an all-time high

Mr Lloyd said the largest factor behind May’s price drop was skyrocketing supply. “Nationwide, the number of properties for sale was up 48 per cent year-on-year in May, which is the largest percentage jump we have ever seen and resulted in the record-breaking number of listings.

“Having more options than ever before is really taking the pressure off buyers and eliminating that fear of missing out that was behind much of the price growth over the past couple of years. As a result, the market has seen a remarkable shift, putting buyers well and truly in the driver's seat.”

Looking around the country, Mr Lloyd said every region saw more properties for sale in May when compared with the same month last year. “Wellington continued to be the standout, with supply more than doubling (up 101%) when compared with May 2021.

Supply % change by region - May 2022 vs May 2021
RegionSupply % change
Hawke's BayHawke's Bay+94%+94%
Bay of PlentyBay of Plenty+76%+76%
West CoastWest Coast+2%+2%

“Hawke’s Bay (up 94% year-on-year), Manawatū/Whanganui (up 83%), and Bay of Plenty (up 76%) were not far behind, all seeing supply increase by at least three quarters in 12 months.”

Adding to the cooling prices, Mr Lloyd said demand for properties dropped 9 per cent year-on-year nationwide in May. “Nelson/Tasman (up 9%), Hawke’s Bay (up 6%), Northland (up 4%), and Wellington (up 4%) were the only regions to see demand increase on the same month in the year prior, but this did not compare with the supply surges seen in these spots.”

Wellington prices drop by 2%

The Wellington region saw an average asking price of $964,350 last month, marking an increase of 12 per cent year-on-year and a drop of 2 per cent when compared with the month prior.

Looking at Wellington City, Mr Lloyd said the district’s average asking price fell by 1 per cent month-on-month reach $1,070,000 last month. “The most expensive district in the region was South Wairarapa ($1,117,750) followed by Porirua ($1,004,200).”

Most expensive districts in the Wellington region - May 2022
DistrictAverage asking price - May 2022
South WairarapaSouth Wairarapa$1,117,750$1,117,750
Wellington CityWellington City$1,070,000$1,070,000

While supply surged in Wellington last month, demand in the region grew by a comparatively small 4 per cent year-on-year.

The Capital’s most popular property in May was a four-bedroom, two-bathroom house on Grafton Road in Roseneath. “The house was watchlisted 415 times in its first seven days onsite.”

Prices see a downturn in the Auckland region

The average asking price in the Auckland region was $1,226,850 in May, climbing 13 per cent year-on-year and dropping by 2 per cent month-on-month.

“Looking at Auckland City, the average asking price was $1,330,800 in May, making it the fourth most expensive district in the region.” The most expensive districts in Auckland last month were Waiheke Island ($1,652,900), North Shore City ($1,436,400), and Rodney ($1,372,500).

Most expensive districts in the Auckland region - May 2022
DistrictAverage asking price - May 2022
Waiheke IslandWaiheke Island$1,652,900$1,652,900
North Shore CityNorth Shore City$1,436,400$1,436,400

Supply in the Auckland region was up 36 per cent year-on-year in May, while demand dropped 17 per cent.

Last month’s most popular property in the country was a three-bedroom, four-bathroom house on Renall Street in Freemans Bay. "It was watchlisted 704 times in its first seven days onsite.”